Stake in 8AM acquired, net inflows solid
Tatton has now concluded the acquisition of 50% of 8AM Global Limited (8AM) for a total consideration of £7.0m (£3.5m payable now, funded through the issue of new shares, plus two performance-linked cash payments after 12m & 24m). Tatton has an option to acquire the remaining 50% of 8AM in due course.The deal looks a solid strategic fit. It adds c. £0.8bn of ‘assets under influence’, with 8AM running a range of Model Portfolio Services and funds which are complementary to Tatton’s and provide existing IFA clients with an extended product range. Tatton also gains the benefit of a broader financial adviser base. The deal is expected to be earnings enhancing from FY23 onwards.
Impressively, considering market volatility and general economic uncertainty, Tatton has also reported strong net inflows over the first four months of FY23 (Apr 22 - Jul 22).
We have updated our forecasts to take the 8AM deal into account and our fundamental value / share ticks up from 530p to 540p. That is 29% above the current price.
Tatton Asset Management is engaged in providing a range of services to the Financial Conduct Authority ("FCA") directly authorized financial adviser ("DA IFA") marketplace encompassing discretionary fund management, regulatory and compliance services and mortgage services. Co.'s discretionary portfolio management ("DFM") service operates on ten United Kingdom adviser WRAP platforms and can be integrated into the growing number of adviser WRAP platforms in the market. Co. provides support services to independent financial advisors ("IFA"s), enabling DA IFA firms to provide compliant and effective investment portfolio management for their platform based clients.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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