MIDAS SHARE TIPS UPDATE: Our Tatton recommendation has increased by 35%

January is a difficult month. Christmas bills are coming in, credit card payments are due, and the taxman is waiting to get paid.

Setting aside money for the future may seem almost impossible, but Tatton Asset Management It helps savers invest money more effectively and businesses run quickly.

The company works exclusively with independent financial advisors, offering them a range of investment portfolios that they can offer to their end clients.

There are 45 combinations to choose from, some focused on income, some focused on ethical considerations, some that track interest rates, and others that mix and match various funds.

There are also actively managed funds and passive trackers, with the most popular being a 50:50 mix of the two. Each category offers different options, from adventurous to cautious, depending on investors’ individual attitudes toward risk.

The fee, however, is always 0.15 percent of assets under management, one of the lowest in the industry. However, the returns are steady and consistent, and compete with the best and most expensive advisory services. This combination of value and results has helped Tatton grow sales, profits and client numbers, with more than 1,100 advisors using the company on behalf of 140,000 savers.

When Midas recommended the business in 2021, Tatton was taking over almost £11bn in assets and founder Paul Hogarth said he wanted to increase that figure to £15bn by 2023.

It has comfortably surpassed that target, now manages around £20bn in savers’ funds and intends to take that figure to £30bn in the next five years.

Hogarth was one of the first in its field to offer model portfolio services, where assets are selected and managed by

experts, allowing advisors to offer their clients many options without incurring the costs associated with individualized portfolios.

Tatton also has two other businesses. Paradigm Consulting helps financial advisors stay on top of regulatory and compliance requirements, while Paradigm Mortgages helps advisors ensure the best products for clients. Interim results to September showed good growth across the group, with assets under management increasing, new clients joining and more financial advisors choosing to use Tatton’s services.

City analysts expect more of the same, which will help boost sales and profits. Revenue is forecast to rise 19 per cent to £44 million for the year ending March, rising to almost £50 million in 2026. Profits are expected to rise almost 19 per cent this year to more than £22 million, rising to almost £26 million next year.

Hogarth, who owns 16.5 per cent of the shares, is keen to ensure there are decent dividends. Around 19p is expected for the current year, rising to 22p in 2026.

Midas Verdict: Tatton shares were worth £4.95 when Midas recommended it in the summer of 2021. Today, the shares are 35 per cent ahead at £6.74 and brokers remain bullish on the business. Investors looking for cash early in the year could sell their holdings and make some profits, but the stock should continue to perform, so most investors would be advised to hold on to their shares.

Traded in: Aim Heart: TAM Contact: tattonassetmanagement.com