Research on Tatton Asset Management Plc (TAM:LON) from Equity Development
• Assets under management and influence (AUM/I) grew 15.5% over H1 to £28.0bn, driven by strong investment performance (+£2.4bn) and solid net flows (+£1.0bn). The IFA base continued to expand, up by 77 to 1,295 firms, and AUM/I reached £28.4bn on 6 November, with net flows of c.£0.7bn since 30 September. • H1 revenue grew 25% year on year to £32.1m, well ahead of underlying cost growth. Adjusted operating profit rose 33% to £17.5m, with the margin up from 51.0% to 54.5%, and PBT grew 37% to £16.0m. The balance sheet remains strong, with no debt and net cash of £35.1m after paying the £9.1m final FY26 dividend. • Net flows averaged £167m per month over H1, held back by Q2 outflows as a few larger IFAs were consolidated. Underlying flows were £210m per month, and Tatton still delivered the second highest flow rate in the sector. Based on the current pipeline, management expect c.£1.2bn of net flows in H2. • FY27 forecasts edge up on a slightly higher revenue yield, despite our conservative assumption of no further market gains in H2. Our Fair Value remains 900p per share, 35% above the current share price, while the PER of 18.7x sits slightly below the peer median of 20.0x.
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