Tatton Asset Management shares plummet as consulting arm under pressure
Shares in Tatton Asset Management fell 12 per cent this morning despite increasing assets and inflows as the firm reported that its consulting arm faced downward pressure on revenue.
Assets under management soared 24.5 per cent to £6.1bn in the financial year, growing seven per cent in the six months to the end of March 2019.
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Net inflows were £1.1bn over the last 12 months, the company said in a trading update this morning.
However, shares fell on the news that Paradigm Consulting was affected by downward pressure on revenue despite the fact that the offshoot had increased its client numbers from 368 to 390.
Tatton Asset Management chief executive Paul Hogarth said: “I am very pleased with the performance of Tatton Investment Management which continues to increase assets under management and attract net flows in difficult markets."
He added: “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.
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“The Group remains well positioned to achieve continued growth and deliver against its stated strategy.”
The company will report its results for the year ending 31 March on 3 June.