Tatton shares jump 10% as full-year results beat forecasts and dividend rises 42%

Shares in Tatton Asset Management PLC (AIM:TAM) jumped 10% to 661.18 pence on Tuesday after the investment manager reported full-year results ahead of expectations and lifted its dividend by 42%.

The group, which runs model investment portfolios and provides support services to independent financial advisers (IFAs), delivered double-digit organic growth across revenue, profit and earnings.

Revenue rose 20.1% to £54.4 million in the year to 31 March, while adjusted operating profit climbed 24.1% to £28.5 million.

The adjusted operating margin widened to 52.3% from 50.6%, and statutory pre-tax profit increased 17.2% to £25.3 million.

Adjusted fully diluted earnings rose 22.3% to 35.05 pence per share.

The board raised the total dividend to 27.0 pence, up 42.1%, including a final payout of 15.0 pence.

Assets under management and influence grew 11.0% to £24.216 billion over the year, and had reached £26.486 billion by 12 June.

Underlying net inflows totalled £2.806 billion, running at an average of £234 million a month and picking up pace in the second half.

The number of IFA firms using Tatton rose 9.7% to 1,218, with client accounts climbing to 157,850.

Its Paradigm Mortgages arm handled completions of £18.0 billion, a 27.2% increase on the prior year.

During the year, Tatton made a £4.7 million strategic investment in Absolute Financial Management, part of a wider £10 million commitment.

Cash stood at £33.9 million and net assets rose to £55.0 million.

The group reiterated its target of reaching £30 billion in assets under management and influence by the end of its 2029 financial year.

The board said it looked to the year ahead and beyond with confidence.