Strong organic growth triggers fair value increase
AUM reached £10.8bn on 30 Sep 21, an increase of 20% in H1 (31 Mar 21: £9.0bn) and up 38% y-o-y (30 Sep 20: £7.8bn). We knew the acquisition of Verbatim funds had boosted H1 AUM by £650m, but net inflows were also stronger than expected, at £652m (99% up on H1 21: £328m).Average monthly net inflows have recovered strongly since the Feb-Mar 20 Covid crash (when net inflows dipped across the asset management sector), doubling from £55m (six months to 30 Sep 20) to £109m (six months to Sep 21). Tatton has in fact been one of the top performers in the sector when it comes to net inflows, and we see further potential for inflows to accelerate, especially as the new Fintel distribution deal (announced in Sep 21) - which provides access to an additional 3,800 intermediary firms - gathers momentum.
On the back of higher-than-expected total AUM and net inflows, the potential to further boost inflows through the new Fintel distribution deal, and the value-enhancing price paid for the Verbatim funds, we revise our core value from 410p per share to 560p per share. Our revenue forecast for FY 22 increases from £26.3m to £28.1m and adjusted operating profit forecast from £12.8m to £13.7m.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.