Deep Dive Into H1 Results of Two FTSE Stocks – Tatton Asset Management Plc and SVM UK Emerging Fund Plc

Tatton Asset Management Plc

Tatton Asset Management Plc (TAM) is a Wilmslow, the United Kingdom based organisation involved in the provision of platform-based funds management services as well as regulatory and compliance, mortgages and protection. The company is also engaged in providing various financial consulting services. The company has three major operating segments which are Tatton Investment Management, Paradigm Partners and Paradigm Mortgage Services. Paradigm Partners is in the business of providing regulatory and compliance-related services to a variety of companies, including money related advancements, counsel aptitudes and information evaluation, FCA application, hazard appraisal and moderation plans, consistency checking plan structure and review. Paradigm Mortgage Services is engaged in contract appropriation business and gives access to loaning board just as a scope of home loan and related help administrations, including expert loaning merchants, conveyancing accomplices and general protection through Paradigm Protect.

TAM Financial Performance

On 11th November, the company reported its interim results for the six months ended 30th September 2019, in which it was highlighted that the Discretionary assets under management (AUM) were up by 22.8 per cent to £7.0 billion as compared to the 2018 AUM at £5.7 billion. The company also reported that the inflow of Average Assets Under Management were around £73.0 million every month. The company highlighted that the revenue was up by 15.2 per cent to £9.73 million as compared to the revenue in 2018 for the same period reported at £8.45 million. In the announcement, it was reported that the Adjusted operating profit for the period increased by around 23.2 per cent to £4.13 million as compared to the figure in 2018 during the same period at £3.35 million. It was also reported that the Profit before tax moved up to £3.61 million in the reporting period from £3.08 million in the same period of 2018. The company also reported the Return on capital employed (ROCE) to have increased by 1.1 per cent to 25.2 per cent.

ParticularsUnaudited sixUnaudited sixAudited
months endedmonths endedyear ended
30-09-201930-09-201831-03-2019
(£’000)(£’000)(£’000)
Revenue9729844517518
Administrative expenses-6118-5473-11593
Operating profit361129725925
Share-based payment costs413365874
Exceptional items10213509
Adjusted operating profit (before separately disclosed items)412633507308
Finance (costs)/income-1112187
Profit before tax361030846112
Taxation charge-667-681-1255
Profit attributable to shareholders294324034857
Earnings per share – Basic5.26p4.30p8.69p
Earnings per share – Diluted4.79p3.95p7.92p
Adjusted earnings per share – Basic5.92p4.97p10.99p
Adjusted earnings per share – Diluted5.39p4.57p10.02p

Source: Company Website

TAM Share Price Performance

Source: Thomson Reuters

On 11th November 2019, at 02:40 P.M GMT, at the time of writing, Tatton Asset Management Plc’s stock price was trading at GBX 220.00, an increase of 2.80 per cent or GBX 6.00 per stock as compared to the previous day’s closing price, which was reported to be at GBX 214.00. At the time of writing, the Tatton Asset Management Plc stock price was trading 22.93 per cent above the 52-week low stock price, which was at GBX 178.96 per stock, set on September 16, 2019. This was also 13.38 per cent below the 52-week high price at GBX 254.00 per stock, which the company’s stock set on November 15, 2018. The reported Market Capitalisation of Tatton Asset Management Plc has been at GBP 119.64 million.

As of the time of writing, 306,160 of the company’s shares had been traded in the market. The average volume of trading per day, for the last one year in the market, was 51,180 shares. The stock has reportedly shown a downward change of 11.29 per cent in value in the last one year, from the price of GBX 248.00 per stock. There also has been an upward change in the last six months in the value of Tatton Asset Management Plc’s stock of around 0.457 per cent from the share price of GBX 219.00. Tatton Asset Management Plc’s stock has also reportedly gained 19.24 per cent in value in the last one month from the price of GBX 184.50.

SVM UK Emerging Fund Plc

SVM UK Emerging Fund Plc (SVM) is Edinburgh, the United Kingdom based closed-ended investment trust. The investment philosophy of the company is the long-term growth in the capital by making investments in small and medium enterprises within the location of the United Kingdom. The company concentrates on the quoted equities of the London Stock Exchange’s alternative investment market (AIM).

SVM Financial Performance

On 11th November 2019, the company announced its half-year report through a press release for the six months ended on 30th September 2019. The company reported Net Asset Value (NAV) return of 1.3 per cent in comparison with 5.0 per cent return in the IA UK All Companies Sector Average Index and 4.6 per cent return in the FTSE All-Share Index which are two comparative benchmark indices for the company. The company also highlighted that the share price increased by approximately 3.6 per cent during the reporting period. In the last five years ended 30th September 2019, the NAV gained 71 per cent and the share price of the company shot up by 70.6 per cent, against a comparative benchmark return of 38.8 per cent, making the company achieve its long-term capital growth objective.

Total Return Performance to 30 September 20196 months3 years5 Years10 Years
Net Asset Value1.30%30.50%71.20%79.40%
Share Price3.60%34.90%70.60%64.20%
Benchmark Index *5.00%20.30%37.10%84.40%

Source: Company Website

Income StatementSix months to 30 September 2019Six months to 30 September 2018
 RevenueCapitalTotalRevenueCapitalTotal
 £’000£’000£’000£’000£’000£’000
Net gain on investments at fair value7373950950
Income94948686
Investment management fees-26-26
Other expenses-45-45-32-32
Gain before finance costs and taxation494796549501004
Finance costs-11-11-22-22
Gain on ordinary activities before taxation38478532950982
Taxation-2-2
Gain attributable to ordinary shareholders38478530950980
Gain per Ordinary Share0.63p0.78p1.41p0.50p15.82p16.32p

Source: Company Website

SVM Share Price Performance

Source: Thomson Reuters

On 11th November 2019, at 02:22 P.M GMT, at the time of writing, SVM UK Emerging Fund Plc’s stock price was trading at GBX 85.36 per stock, a decrease of 1.89 per cent or GBX 1.64 as compared to the previous day’s closing price, which was reported to be at GBX 87.00. At the time of writing, the SVM UK Emerging Fund Plc stock price was trading 6.037 per cent above the 52-week low stock price, which was at GBX 80.50 per stock, set on March 25, 2019. This was also 25.64 per cent below the 52-week high price at GBX 114.80 per stock, which the company’s stock set on November 20, 2018. The reported Market Capitalisation of SVM UK Emerging Fund Plc has been at GBP 5.22 million.

At the time of writing, 15,600 of the company’s shares had been traded in the market. The average volume of trading per day, for the last one year in the market, was 12,950 shares. The stock has reportedly shown a downward change of 24.12 per cent in value in the last one year, from the price of GBX 112.50 per stock. There also has been a downward change in the last six months in the value of SVM UK Emerging Fund Plc’s stock of around 9.910 per cent from the share price of GBX 94.75. SVM UK Emerging Fund Plc’s stock has reportedly lost 4.09 per cent in value in the last one month from the price of GBX 89.00.

The beta of the SVM UK Emerging Fund Plc’s stock has been reported to be at 0.15. This means that the company’s stock price movement is significantly less volatile in its trend, as compared to the benchmark market index’s movement.