This time last year, we wrote: “our key takeaway from Tatton’s hugely impressive last few years, is that it has designed and implemented a superior offering in platform-MPS with net flows consistently far higher than peers.” That view has only been reinforced with Tatton’s most recent trading update covering FY25 (Apr 24 – Mar 25). It recorded another year of record net inflows, as it did in FY24 (£3.7bn in FY25; £2.3bn in FY24) – a hugely impressive achievement given market weakness and investor nervousness, especially in calendar-2025.
Closing AUM was 2.8% above our previous forecast (£20.8bn v £20.3bn), on stronger than expected net flows. But management have stated that FY25 results should be in line with market expectations. So, although the probability is that profits may be a little ahead of our particular forecasts, we have not changed these at this stage. And given the degree of market and economic uncertainty, we will wait for results (in June) before updating FY26 forecasts and beyond, but we flag that our net flow assumption for FY26 is +£2.0bn, which is looking conservative given current momentum.
We leave our fundamental valuation of 715p per share unchanged, which is now c20% above the current share price after recent market falls.
