Tatton Asset Management Plc · LSE:TAM
Tatton Asset Management — FY2025 Earnings Presentation
48 slides from Tatton Asset Management's earnings presentation, June 2025
Slide 1: Investor and Analyst Presentation
INVESTOR AND ANALYST PRESENTATION JUNE 2025
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by Tatton Asset Management plc (the “Company”). The content of this Presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. The Slides are be
Slide 3: Agenda
AGENDA Our Team 04 Key Highlights 07 Financial Performance 11 Strategic Update 19 Investment Management Update 28
Slide 4: Introduction to the Team
INTRODUCTION TO THE TEAM aed te
Slide 5: Introduction to the Team
INTRODUCTION TO THE TEAM Paul Hogarth Paul Edwards Lothar Mentel CEO CFO CIO Over 40 years’ experience at Joined Tatton Asset Co-founder of Tatton Capital Board level in the financial Management plc as Group Limited in 2012 services sector CFO in May 2018 Has held senior investment Founder of Tatton
Slide 6: Divisional Structure
DIVISIONAL STRUCTURE Tatton Asset Management plc (“TAM” or “Group”) Investment Management Division IFA Support Services Division (“Tatton”) (“Paradigm”) • Tatton Investment Management offers on- platform model DFM MPS, the fastest-growing segment of the wealth management market Paradigm Consulting P
Slide 7: Key Highlights
KEY HIGHLIGHTS ated Ue
Slide 8: Group Financial & Operational Highlights
GROUP FINANCIAL & OPERATIONAL HIGHLIGHTS Financial Highlights Revenue Adjusted Adjusted Operating Fully Adjusted Full Year Operating Profit1 Profit Margin1 Diluted EPS2 Dividend £45.3m £22.9m 50.6% 28.65p 19.0p up 23.1% up 23.9% 2024: 50.3% up 25.1% 2024: 16.0p up 18.8% Operational Highlights AUM/I3
Slide 9: Strong Financial Performance Since IPO
STRONG FINANCIAL PERFORMANCE SINCE IPO Group Revenue (£m) 18% Adjusted Operating Profit1 (£m) 23% CAGR CAGR £45.3m £22.9m £36.8m £18.5m £32.3m £16.4m £29.4m £14.5m £23.4m £11.4m £21.4m £17.5m £9.1m £15.5m £7.3m £11.9m £6.2m £4.5m Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-17
Slide 10: Assets Under Management / Influence
ASSETS UNDER MANAGEMENT / INFLUENCE 1 AUM/I 22.5 US Tariffs Central 20.0 Bank Pivot 17.5 Fight on inflation 15.0 Russia invades £ billion Ukraine Global 12.5 Pandemic 10.0 Mar-2020 Market Crash 7.5 5.0 2.5 2013 Tatton Incorporated 0.0 10 1. “AUM/I” is Assets under management and influence including
Slide 11: Financial Performance
FINANCIAL PERFORMANCE ated Ue
Slide 12: Group Profit & Loss
GROUP PROFIT & LOSS Growth Mar-25 Mar-24 % £’000 £’000 • Group revenue increased 23.1% to £45.3m • Group adjusted operating profit1 increased 23.9% Revenue 23.1% 45,309 36,807 to £22.9m Adjusted operating profit1 23.9% 22,946 18,514 • Adjusted operating profit margin1 of 50.6%, Margin1 % 50.6% 50.3%
Slide 13: Divisional Performance: Tatton
DIVISIONAL PERFORMANCE: TATTON AUM/I2 Revenue Strong underlying growth in AUM/I2 to £21.8bn, underpinned by: +24.0% £21.8bn +26.3% £39.0m • Record organic net inflows of £3.687bn, an average of £307m per £17.6bn month – equates to 22.3% of opening AUM of £16.551bn £30.9m AUM/I2 Net inflows Net inflo
Slide 14: Divisional Performance: Paradigm
DIVISIONAL PERFORMANCE: PARADIGM Mortgage Completions Revenue • Net new Mortgage member firms in the year were 124, but totalled +8.1% +6.4% £14.2bn £6.3m 1,915 at the end of the year (2024: 1,916) following a rationalisation £13.1bn £5.9m of a number of dormant firms • Consulting member firms were
Slide 15: Overhead Analysis & Direction
OVERHEAD ANALYSIS & DIRECTION Investment in Change1 Inflationary Stepped costs One off FY25 growth £ £ £ £ £ Employee costs (Incl bonuses) (£13.7m) (£2.1m) (£0.6m) (£0.5m) (£1.0m) - Marketing & Distribution (£5.0m) (£0.6m) - (£0.6m) - - Legal & Professional (£2.0m) (£0.5m) (£0.2m) - (£0.1m) (£0.2m)
Slide 16: Group Financial Strength
GROUP FINANCIAL STRENGTH Mar-25 Mar-24 Mar-25 £’000 £’000 Goodwill & intangible assets 18,545 18,834 Regulatory capital requirement £4.561m Tangible fixed assets 932 816 Total Shareholder funds £50.552m Trade & other receivables 7,671 5,402 Less: Foreseeable dividend (£5.700m) Tax 3,174 2,569 Less:
Slide 17: Group Cash Flow Bridge
GROUP CASH FLOW BRIDGE £24.6m £1.0m Interest received FY25 Corporation Cash from on TAM’s own tax operations cash +107% adjusted Capex & operating (£10.4m) contingent profit1 consideration Dividends paid relates to FY24 (£5.9m) £32.1m final dividend of (£1.0m) (£1.0m) 8.0p, and FY25 Investment £24.8
Slide 18: FY26 Outlook & Guidance
FY26 OUTLOOK & GUIDANCE Comments Guidance Flows Flows anticipated to normalise in FY26 £200m – £250m per month3 AUM/I1 to grow in line with net inflows, with neutral markets AUM/I1 c.£21.8bn assumed (including Perspective impact £2.9bn) Tatton revenue margin c.20bps – 21bps Revenue Paradigm revenue
Slide 19: Strategic Update
STRATEGIC UPDATE ated Ue
Slide 20: Largest Participant in the Fastest Growing Segment of the Market
LARGEST PARTICIPANT IN THE FASTEST GROWING SEGMENT OF THE MARKET 2025 MARKET GROWTH ON-PLATFORM FUNDS UNDER £21.8bn 12% MANAGEMENT 2024 £17.6bn 2023 13% 2022 £13.9bn 13% 20259 2021 £11.3bn 14% Size: Tatton AUM/I 2020 £9.0bn 20248 % of on-platform 2019 £6.7bn 13% Size: £872bn 2018 20237 DFM FUM £6.1b
Slide 21: Roadmap for Growth – 5 Year Plan
ROADMAP FOR GROWTH – 5 YEAR PLAN Assets under management / influence 5 Year Target - £12.4bn of AUM/I1 between FY24 - FY29 to reach £30bn • Year 1 we have delivered £4.2bn or 34% of the target in the first year • Organic growth target average c.£2.5bn per year between FY26 – FY29 £22.9bn • Any futur
Slide 22: Tatton AUM Growth by Firm Cohort
TATTON AUM GROWTH BY FIRM COHORT AUM growth, showing assets generated from each year’s new firms (“cohorts”) Cohorts by financial year 22
Slide 23: Tatton – Opportunity Update
TATTON – OPPORTUNITY UPDATE Continued Progression Mar-2023 Mar-2024 Mar-2025 Number of firms 869 Number of firms 975 Number of firms 1,110 Direct firms Paradigm firms Direct firms Paradigm firms Direct firms Paradigm firms 703 / 81% 166 / 19% 821 / 84% 154 / 16% 969 / 87% 141 / 13% AUM £12.7bn AUM £
Slide 24: Evolved MPS Offering
EVOLVED MPS OFFERING CO-BRANDED WHITE LABELLED APPOINTED INVESTMENT TATTON MPS TATTON MPS ADVISER (AIA) MPS 31 arrangements 15 arrangements 4 arrangements £1,755m AUM (Mar-25) £1,745m AUM (Mar-25) £651m AUM (Mar-25) • Offering jointly branded client • Offering IFA firm branded • Offering a joint inv
Slide 25: Defaqto: Top 10 Recommended MPS Investments
DEFAQTO: TOP 10 RECOMMENDED MPS INVESTMENTS Defaqto's Top 10 recommended MPS investments from whole of market data which includes more than 18,000 funds, 2,900 discretionary fund manager MPS portfolios, platforms and products. Position Tatton has 5 propositions in the top 10, % Share Position Tatton
Slide 26: MPS on Platform
MPS ON PLATFORM YoY Position Wealth Manager Dec-24 Top 10 MPS Providers1 Growth (%) £20.0bn 1 Tatton Investment Management £18.8bn 34% £17.5bn 2 Quilter WealthSelect £18.4bn 34% £15.0bn 3 Parmenion IM £9.6bn 10% £12.5bn 4 LGT Wealth Management £9.0bn 3% £10.0bn 5 Timeline £8.1bn 103% £7.5bn 6 RBC Br
Slide 27: Paradigm
PARADIGM Membership growth 2017 - 2025 • The housing market continues to be tested by macro-economic factors, however, consumer confidence and improving affordability constraints underpin a steady and 2000 1250 resilient outlook Mortgage • Boosted by the cessation of SDLT discounts, falling Interest
Slide 28: Investment Management Update
INVESTMENT MANAGEMENT UPDATE
Slide 29: Drivers for Portfolio Returns 2024/25
DRIVERS FOR PORTFOLIO RETURNS 2024/25 MARKET DYNAMICS TATTON MPS POSITIONING • Q2/24 – Markets sell off on inflation worries, oil prices rally. • 2024 neutral on risk – remained fully invested UK shares outperform in the turbulence. As expectations Q2/2025 move to US underweight recover, Mag7 and “q
Slide 30: Volatile 1 Year Returns Picture (Core MPS)
VOLATILE 1 YEAR RETURNS PICTURE (CORE MPS) 12 month returns before platform and adviser charges; Money Market MPS in solid dark blue, Source: TattonIM and Morningstar, 20/05/2025 30
Slide 31: ARC Peer Group Comparison to End of May 2025
ARC PEER GROUP COMPARISON TO END OF MAY 2025 3 Year 5 Year 10 Year 1 month 3 month 6 month 1 Year (Annualised) (Annualised) (Annualised) Core Defensive 1.3 -0.6 0.2 5.3 2.8 2.3 2.9 ARC Cautious PCI 0.7 -0.4 0.5 3.7 1.9 2.2 2.1 Relative 0.6 -0.2 -0.3 1.6 0.9 0.1 0.8 Core Cautious 2.2 -0.8 0.2 6.1 4.4
Slide 32: MPS Investment Portfolio Returns
MPS INVESTMENT PORTFOLIO RETURNS 1 year to 31st March 2025 Portfolio Performance (per cent.) - core product set annualised, after DFM charge and fund costs ARC Active Tracker Hybrid Ethical Peers1 Defensive 3.0 3.9 3.5 3.4 3.2 Cautious 3.7 4.7 4.2 2.8 2.7 Balanced 3.8 5.0 4.4 2.2 2.1 Active 4.1 5.4
Slide 33: MPS Investment Portfolio Returns
MPS INVESTMENT PORTFOLIO RETURNS 3 years to 31st March 2025 Portfolio Performance (per cent.) - core product set annualised, after DFM charge and fund costs ARC Active Tracker Hybrid Ethical Peers1 Defensive 1.0 2.0 1.5 1.9 1.0 Cautious 2.5 3.5 3.0 2.6 1.7 Balanced 3.6 4.6 4.1 3.1 2.1 Active 4.7 5.6
Slide 34: MPS Investment Portfolio Returns
MPS INVESTMENT PORTFOLIO RETURNS 5 years to 31st March 2025 Portfolio Performance (per cent.) - core product set annualised, after DFM charge and fund costs ARC Active Tracker Hybrid Ethical Peers1 Defensive 3.1 3.3 3.2 4.2 3.1 Cautious 6.1 6.1 6.1 6.1 5.1 Balanced 8.2 8.1 8.2 7.4 6.6 Active 10.5 10
Slide 35: MPS Investment Portfolio Returns
MPS INVESTMENT PORTFOLIO RETURNS 10 years to 31st March 2025 Portfolio Performance (per cent.) - core product set annualised, after DFM charge and fund costs ARC Active Tracker Hybrid Peers1 Defensive 2.6 2.8 2.8 2.1 Cautious 4.3 4.3 4.4 3.2 Balanced 5.3 5.4 5.4 4.3 Active 6.5 6.6 6.6 4.3 Aggressive
Slide 36: Ethical Investment Portfolio Returns
ETHICAL INVESTMENT PORTFOLIO RETURNS 5 years to 31st March 2025 Tatton Fund Performance (per cent.) - ethical product set, annualised, after DFM charge and fund costs ARC Ethical Peers1 Defensive 4.2 3.1 Cautious 6.1 5.1 Balanced 7.4 6.6 Active 8.9 6.6 Aggressive 10.3 7.9 Global Equity 10.8 7.9 • Th
Slide 37: Quartile Rankings vs Peers
QUARTILE RANKINGS VS PEERS MARCH 2025: 1, 3, 5 and 10 years Defaqto Rating Tatton Model 1 Year 3 Years 5 Years 10 Years Defaqto Rating Tatton Model 1 Year 3 Years 5 Years 10 Years Tatton Core Global Equity 1 1 1 1 Tatton Core Balanced 1 1 1 1 Tatton Ethical Global Equity 3 2 2 Tatton Ethical Balance
Slide 38: 10-Year MPS Returns vs Key Competitors
10-YEAR MPS RETURNS VS KEY COMPETITORS against peer platform portfolio services in same risk profile 10 Year Annualised Returns - Risk Profile 5/Balanced 7% 6% 5.7% 5.7% 5.7% 5.2% 5.3% 5.3% 5% 4.8% 4.5% 4% 3% 2% 1% 0% LGT WM Parmenion Schroder RBC Brewin Average Tatton Core Sarasin Quilter Balanced
Slide 39: Distribution of AUM Across Proposition Matrix
DISTRIBUTION OF AUM ACROSS PROPOSITION MATRIX 45 multi-asset portfolio choices that satisfy multi-manager, index tracker, income drawdown and ethical investment choices across 6 standard UK risk profiles (3-8 out of 1-10). Two set of portfolios, one with a home weighting (Classic) and one Global Def
Slide 40: 25/26 Market Variables
25/26 MARKET VARIABLES Risks: Policy uncertainty Tariff uncertainty challenge to Wildcards: US downturn otherwise resilient AI boom, Mega Tech Russia - Ukraine Domestic China Fiscal stimulus – US Debt concerns global economy Fiscal US/EU/China Tariffs reignite inflation > elevated yields TACO turns
Slide 41: MPS Consumer Duty Review
MPS CONSUMER DUTY REVIEW FCA to carry out MPS consumer duty review The Financial Conduct Authority will launch a multi-firm review of model portfolio services later this year to examine how firms are applying consumer duty. In a letter published today, the regulator explained that MPS has been growt
Slide 42: Investment Case
✓ Leading market position – the market leader in the UK DFM MPS market with £21.8bn1 of AUM/I, operating in the fastest growing segment of the UK wealth market INVESTMENT CASE ✓ High barriers to entry – breadth of investment and service offering with over 10 years of investment track record, and a w
Slide 43: Appendices
APPENDICES ated Ue
Slide 44: Perspective
PERSPECTIVE Mar-23 Mar-24 Mar-25 Opening AUM/I1 £10.3bn £12.6bn £15.5bn Organic net flows £1.5bn £1.7bn £3.0bn • Tatton net inflows excluding Tatton % of opening 15% 13% 19% Perspective have consistently Market / Other (£0.4bn) £1.2bn £0.4bn grown. Resulting in FY25 of Acquisitions £1.1bn - - £3.0bn
Slide 45: Opportunity for Further Growth
OPPORTUNITY FOR FURTHER GROWTH AUM analysis excludes Perspective Financial Group assets Non-Paradigm firms now represents 969 firms and 79% of AUM • Successfully increased penetration of non-Paradigm firms from £5.9m of average AUM per firm in Mar-19 to £14.7m in Mar-25 AUM (£bn) # of firms • The av
Slide 46: Asset Retention – March 2025
ASSET RETENTION – MARCH 2025 Consolidation Superbia True Potential Tatton AUM £20.872bn IWP 1.14% Attrition1 c.£237m Retention 98.86% Avellemy Ascot Lloyd Other Consolidators 46 1. Attrition of assets under management from consolidators
Slide 47: Tatton Share Price
TATTON SHARE PRICE Comparison to Peer Group Share price performance comparison v peer group 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% 1 TAM PLC Peer Group Average FTSE AIM All Share 47 1. Selected peer group companies, including AJ Bell, Rathbones, Brooks Macdonald, Polar Capital, Jupiter Investme
Slide 48: Maximising Shareholder Value
MAXIMISING SHAREHOLDER VALUE Market Cap (£m) £115m £129m £106m £196m £265m £270m £344m £371m 1 612p 30.0p Adj F.Dil EPS (interim) 568p 600p 1 Adj F.Dil EPS 25.0p Share price 450p 450p 500p 20.0p 350p 400p 300p 231p 15.0p 206p 28.7p 200p 156p 22.9p 10.0p 190p 20.6p 18.6p 100p 14.7p 13.7p 12.0p 5.0p 9
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