LONDON (ShareCast) - (Sharecast News) - Tatton Asset Management on Monday reported a double-digit increase in interim profit after revenue surged at its core investment business.
The discretionary fund management firm booked a profit before tax of £3.6m for the six months ended 30 September, 17% higher than the same period last year, as revenue jumped by 15% to £9.7m.

As such, Tatton hiked its interim dividend by 14% to 3.20p per share.

The increase in turnover was driven by the Tatton Investment business, which registered a 35% increase to £5.5m, while Paradigm Mortgages' contribution increased by 11% to £1.4m.

Paradigm Consulting revenue declined by 9% to £2.8m.

Discretionary assets under management (AUM) increased by 23% to £7.0bn after achieving average AUM inflows of more than £73.0m per month.

Margins grew from 50.9% to 53.3%, in what the AIM traded company said was a reflection of operational gearing, with further improvement anticipated as the business continues to grow.

The period closed with the acquisition of Sinfonia Asset Management, which holds five funds with AUM of £135m, for £2.7m.

Chief executive Paul Hogarth said: "While we are mindful of the current political and macro-economic factors, the group continues to trade in line with the board's full year expectations and the board remains optimistic regarding the prospects of the group."

Tatton Asset Management shares were up by 2.10% at 218.50p at 1324 GMT.

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