Exceptional momentum, AUM +18% over H1-26

Tatton AM’s momentum shows no sign of abating. Assets Under Management/Influence (AUI) jumped 18% in H1 to a record £25.8bn; ahead of our forecast growth and well on track to meet Tatton’s medium-term target of £30bn by end-FY29 (page 3). Net flows were again very strong, adding £1.7bn to AUM (£281m/ month), with the net inflow rate far higher than peers (page 2) and above Tatton’s guidance for FY26 (£200-£250m/ month). Investment returns added £2.1bn (+9.9% over 6 months).

Assuming flat markets for the balance of FY26 (noting there is always the chance of market falls pegging back AUM), we upgrade FY26 forecasts as follows (page 4): AUM £22.4bn (previously £21.1bn - excluding c. £1.2bn AUI from 50%-owned 8AM Global); revenue: £51.6m (£50.6m); adjusted operating profit £26.3m (£25.6m); PBT: £25.0m (£24.3m).

On revised forecasts, our fundamental valuation ticks up from 735p per share to 750p.