Tatton warns of consulting pressures as assets top £6bn
Discretionary fund manager and IFA support service Tatton Asset Management continued to grow revenue and adjusted operating profits in its last treading year despite a "complex and challenging" market environment.
Tatton expects to report revenues and operating profits within the range of analyst estimates as assets under management grew 24.5% year-on-year to £6.1bn as net inflows came to £1.1bn over the last 12 months.
The AIM-listed outfit said its Paradigm Mortgage Services subsidiary continued "to grow well" in the year, outperforming the growth of the mortgage market and continuing to gain market share.
However, Tatton noted that while Paradigm Consulting had increased its member firms from 368 to 390, the unit also experienced downward pressure on revenues from consultancy services and the impact of reduced flows on the Paradigm wrap platform.
Founder and chief executive Paul Hogarth said: "To the extent we are pleased with the mortgage services performance we are disappointed with the lack of growth of Paradigm Consulting though it remains an important component of the group's strategic makeup.
"The group remains well positioned to achieve continued growth and deliver against its stated strategy."
As of 0840 BST, Tatton shares had slumped 9.96% to 208p.