Audited Final Results

Tatton Asset Management PLC

16 June 2026

 

16 June 2026

Tatton Asset Management Plc

("TAM plc", the "Group" or the "Company")

AIM: TAM

AUDITED FINAL RESULTS

For the year ended 31 March 2026

"Tatton delivers full-year results ahead of market expectations"

TAM plc, the investment management and IFA support services group, today announces its audited final results for the year ended 31 March 2026 ("FY26"), which show strong, double-digit organic growth across revenue, adjusted operating profit² and adjusted earnings per share⁴, which are all ahead of market expectations, driven by strong growth in AUM/I¹ and underlying³ net inflows. 

FINANCIAL HIGHLIGHTS

·	Group revenue increased by 20.1% to £54.436m (FY25: £45.309m)
·	Adjusted operating profit2 up 24.1% to £28.485m (FY25: £22.946m)
·	Adjusted operating profit2 margin increased to 52.3% (FY25: 50.6%)
·	Statutory profit before tax increased 17.2% to £25.310m (FY25: £21.596m)
·	Adjusted fully diluted EPS4 increased by 22.3% to 35.05p (FY25: 28.65p)
·	Final dividend of 15.0p (FY25: 9.5p), giving a total dividend for the year of 27.0p (FY25: 19.0p) up 42.1%
·	Strong financial liquidity position, with cash of £33.9m (FY25: £32.1m)
·	Strong balance sheet - net assets increased to £55.0m (FY25: £50.6m)

OPERATIONAL HIGHLIGHTS

·	AUM/I1 increased by 11.0% to £24.216bn (FY25: £21.825bn). Latest AUM/I1 on 12 June 2026 £26.486bn (AUM £24.989bn)
·	Underlying3 AUM increased by £4.8bn, or 26.8%, to £22.805bn (FY25: £17.989bn)
·	Underlying3 net inflows of £2.806bn (FY25: £2.962bn), an increase of 15.6% of underlying3 opening AUM, with an average run rate of £234m per month, improving in the second half of the year (June to date, 10 weeks: £568m, or equivalent to £246m per month)
·	Maintained long-term consistent investment performance throughout FY26
·	Tatton's IFA firms increased by 9.7% to 1,218 (FY25: 1,110) and the number of client accounts increased to 157,850 (FY25: 153,915)
·	Paradigm Mortgages participated in mortgage completions totalling £18.0bn (FY25: £14.2bn), an 27.2% increase year on year
·	Strategic Investment of £4.7m in Absolute Financial Management part of a wider £10m commitment

OUTLOOK

·		Maintaining growth target of £30bn AUM/I1 by the end of the financial year 2029
·		The Board looks to the year ahead and beyond with confidence
1	"AUM/I" is Assets under management and influence, "AUM" is Assets under management.
2	Operating profit before exceptional items, share-based payment charges, amortisation of acquired intangibles, changes in fair value of contingent consideration and operating loss relating to non-controlling interest.
3	Underlying AUM & Underlying net inflows excludes the impact of the conclusion of the Perspective Financial Group contract and associated AUM and net outflows of £3.3bn.
4	Adjusted fully diluted earnings per share is calculated by dividing the adjusted operating profit plus net cash interest and less tax on adjusted operating activities by the weighted average number of ordinary shares in issue during the year plus potentially dilutive ordinary shares.

Paul Hogarth, Chief Executive Officer, commented:

"I am delighted to report another year of outstanding performance, with results ahead of market expectations. This is a particularly pleasing outcome given the well-anticipated and orderly conclusion of the Perspective Financial Group contract during the year and is a powerful demonstration of the fundamental strength of the underlying business and the quality and commitment of our people.

"Our core business has delivered excellent organic growth. Underlying net inflows of £2.806bn, averaging £234m per month throughout the year, drove total AUM/I¹ to £24.216bn, an increase of 11.0% on the prior year. Alongside this, the number of firms using our services grew by 9.7% to 1,218, and I am particularly encouraged by the consistency of our inflows across both halves, with a stronger second half reflecting the depth and resilience of our adviser relationships and the continued strength of our organic growth engine.

"We have made excellent progress against our five-year 'Roadmap for Growth' strategy, targeting £30bn in AUM/I¹ by March 2029. The momentum we have built gives me confidence that we may achieve this ambition ahead of schedule, though for now we are maintaining our stated target while we continue to execute with the same discipline and focus that has brought us to this point.

"The contribution Paradigm continues to make to the Group is also pleasing. Paradigm Mortgages achieved a record level of completions at £18.0bn, reflecting both the strength of the Paradigm proposition and the continued demand from our member firms, and Paradigm Consultancy delivered another dependable year.

"Taken together, these results are a testament to the dedication of our team and the quality of our partnerships with independent financial advisers across the UK. Our full-year dividend of 27.0 pence per share, an increase of 42.1%, reflects the Board's confidence in the business and our commitment to delivering long-term value for shareholders. While we remain mindful of persistent geopolitical uncertainty and the potential for continued market volatility, our model has consistently demonstrated its resilience in precisely these conditions, and I remain confident in our ability to continue to build on our success and make further progress towards our long-term ambitions in the years ahead."

For further information please contact:

Tatton Asset Management plc Paul Hogarth (Chief Executive Officer)  Paul Edwards (Chief Financial Officer)  Lothar Mentel (Chief Investment Officer)	[phone]
Zeus - Nomad and Broker Dan Bate (Investment Banking & QE) Martin Green (Investment Banking) Louisa Wadell (Investment Banking)	[phone]
Singer Capital Markets - Joint Broker Charles Leigh-Pemberton / Peter Steel (Investment Banking)	[phone]
RBC Capital Markets - Joint Broker Oliver Hearsey / Elliot Thomas / Kathryn Deegan	[phone]
Gracechurch Group - Financial PR and IR Heather Armstrong / John Bick / Rebecca Scott	[phone] [e-mail]
Trade Media Enquiries Roddi Vaughan-Thomas	[phone]

For more information, please visit: www.tattonassetmanagement.com

Chairman's Statement

Continuity of Purpose

Introduction

I am delighted to present my first statement as Chairman of Tatton Asset Management plc ("TAM" or "Group") following my appointment at the Annual General Meeting in July 2025. I would like to begin by paying tribute to my predecessor, Roger Cornick, who has served TAM with distinction since the Company's IPO in 2017. Roger has helped the Group establish a strong governance framework, a disciplined growth culture and a clear strategic direction. I am grateful for all his support during the transition and for the solid foundations on which we continue to build.

The Group enters this next phase in excellent shape, operationally robust and financially strong. Our fundamental guiding principle is to support independent financial advisers ("IFAs") to produce superior outcomes for their clients. Our Investment division, Tatton Investment Management Limited ("TIML") continues to produce strong, consistent long-term performance and is focused on excellent client service and communication. Paradigm, our Consultancy and Mortgage division's mission is to support the IFA community with expert guidance and advice.

Our trading performance during the year has been strong, reflecting sustained underlying net inflows. Progress has been achieved despite challenges during the period, including uncertainty over the impact of geopolitical events, UK government fiscal policy and continued regulatory evolution. This outcome demonstrates the resilience of TAM's business model and the strength of its proposition in a competitive and evolving market and has been achieved without compromising investment discipline, client outcomes, or operational quality.

Tatton remains on track to deliver its Roadmap for Growth strategy. The ambition to reach or exceed £30bn of assets under management and influence¹ ("AUM/I") by March 2029 stays unchanged and is supported by strong momentum. At the end of March 2026, our AUM/I stood at £24.2bn.

We have continued to invest in our people and operational strength during the year, to wherever possible improve the breadth and quality of the services we offer our IFAs and members. In December 2025, we made an investment (total overall commitment of £10.0m) in Absolute Financial Management Group, a private equity-backed IFA business with modest financial gearing, which has ambitious plans to help the IFA community.

Our People, A Culture that Sustains Performance

Our people remain central to everything TAM achieves. The commitment, capability, and professionalism of colleagues across the Group continue to underpin the progress and performance described in this report. It is their shared drive to deliver for clients, to develop individually, and to contribute to the wider success of the business that gives the Board such confidence in TAM's long-term prospects.

On behalf of the Board, I would like to thank all our employees for their hard work, energy, and dedication throughout the year. Their contribution has been instrumental in another successful year for the Group. An Employee Survey, undertaken earlier in the financial year by our ESG Committee, showed further progress in the overall participation, engagement, and satisfaction of our employees.

The Group continues to place great emphasis on building an inclusive, diverse, and supportive working environment, where collaboration is encouraged and development is actively supported. We aim to create a culture in which individuals are trusted, challenged, and given the opportunity to gain experience, both professionally and personally.

The Board

The Board of Directors is responsible for strategic oversight, effective governance and ensuring we operate in the best interests of all stakeholders. My role as Chairman is to provide leadership to the Board and create a culture that enables the Directors to perform their duties to the best of their abilities, whilst continuing to provide robust challenge and guidance. Transparency and integrity are key components in everything we do.

Over the course of the year, the Board has continued to evolve in line with the Group's growth. Pippa Hamnett joined the Board as a Non-Executive Director in March 2025, bringing significant experience across financial services, governance, and risk management. During this year, Pippa was appointed Chair of the Remuneration Committee, a role she assumed in July 2025.

I am also delighted to confirm that Lesley Watt was appointed Senior Independent Non-Executive Director and Chair of the Audit and Risk Committee in July 2025. She also continues to lead our ESG Committee. Lesley has a deep understanding of TAM and substantial experience in listed company governance.

UK Corporate Governance

The Board of Directors recognises the importance of good governance in the management of Tatton Asset Management and in the protection of shareholder interests and continues to be a member of the Quoted Companies Alliance ("QCA"). The Group is committed to maintaining high standards of corporate governance and has implemented full compliance with the new QCA Corporate Governance Code. Details of how we have applied the principles that form the QCA Code are provided throughout the Annual Report and are detailed on pages 62-64.

The Board recently undertook a review of the Board's effectiveness. This confirmed that the Board was functioning well, had a good mixture of skills and experience and a strong grasp of the important strategic issues facing the Company. It also confirmed the strong independent nature of all the Non-Executive Directors. The TAM Board currently consists of six members, which we believe is the appropriate size given the Company's stage of development. However, we remain committed to ensuring that we meet the evolving needs of the business and its stakeholders.

Section 172 Statement

Section 172 of the Companies Act 2006 requires Directors to act in good faith to promote the success of the Company for the benefit of its members as a whole. In doing so, they must consider the long-term impact of their decisions, the interests of employees, and the need to foster strong relationships with suppliers, customers, and other stakeholders. Directors must also consider the Group's impact on the community and environment, the importance of maintaining a reputation for high ethical standards, and the need to treat all shareholders fairly. This ensures responsible governance and sustainable business growth in the long-term. Further information on pages 54-55 of the Annual Report.

Returns to Shareholders

TAM's capital-light model continues to generate strong cash flows, enabling the Group to invest in future growth while also delivering attractive returns to shareholders. Reflecting the Group's confidence in the outlook, the Board intends to recommend a final dividend of 15.0 pence per share, maintaining TAM's history of progressive and sustainable distributions. This brings the total ordinary dividend for the year to 27.0p per share, an increase of 42.1% on the prior year.

Outlook

Over the past year, despite interesting and difficult challenges including the opportunities and threats of the changing technology landscape, the business has continued to prosper and produce robust organic growth. TAM's reputation has strengthened further in a marketplace which is demonstrating significant structural growth.

The Board remains confident in the Group's positioning, leadership, and long-term prospects. The combination of a clear strategy, strong balance sheet and disciplined governance, provides a solid platform for continued growth. Whilst we are always aware of the possible impact of extraneous factors, we expect to make good progress in the year ahead in the achievement of our strategic aims and financial objectives.

I would like to thank my fellow Board members for their support, diligence and commitment, and the Executive team for their leadership. Finally, I would like to thank our shareholders for their continued trust and support.

TAM's journey is far from complete, the direction of travel has been firmly established, and I believe the opportunity ahead is still very compelling.

CHRIS POIL

Non-Executive Chairman

1.   Alternative performance measures are detailed in note 27.

Chief Executive Officer's Review

Performance with Purpose

Introduction

I am pleased to present the Annual Strategic Report for Tatton Asset Management plc, marking another year of strong performance, sustained organic growth and meaningful strategic progress.

The year ended 31 March 2026 has been one in which the underlying strength of our business has been clearly demonstrated. Our results reflect a sustained, focused strategy executed consistently over a number of years and we are grateful, as always, for the enduring trust our IFA partners and their clients place in us. That trust is the foundation upon which everything we do is built.

This was also a year shaped by a specific and well-understood transition. Following the end of the Perspective Financial Group contract, we managed the associated outflows in a controlled and orderly fashion. These outflows were anticipated, planned for and communicated to shareholders. Excluding Perspective, the underlying business delivered strong organic growth, consistent adviser inflows and expanding margins, evidence that our markets remain in excellent health and that the fundamentals of our operating model are as robust as ever.

Financial Results

The backdrop to this financial year has not been without challenge. Geopolitical uncertainty has persisted, inflationary pressures have only gradually eased, and markets experienced volatility at various points throughout the period. Despite this, the Group has performed well.

Group revenue increased by 20.1% to £54.4m (FY25: £45.3m), and Group adjusted operating profit rose by 24.1% to £28.5m (FY25: £22.9m). The adjusted operating margin improved to 52.3% (FY25: 50.6%), reflecting the benefit of operating leverage as revenues have scaled and cost discipline has been maintained. Operating cash generation remains strong and continues to underpin our financial resilience and capacity for reinvestment.

Tatton revenue increased by 22.0% to £47.6m (FY25: £39.0m) and adjusted operating profit rose by 23.8% to £30.8m (FY25: £24.9m), with the adjusted operating margin strengthening to 64.8% (FY25: 63.8%). These are excellent results and reflect the continuing momentum in our core model portfolio investment management proposition.

Underlying net inflows, excluding Perspective, were £2.806bn (FY25: £2.962bn) split between £1.352bn in the first half and £1.454bn in the second half. These are a clear and encouraging demonstration of the strength of adviser-led organic growth within the core business. To put this in context, our underlying flow generation has remained consistent with prior periods and reflects well on the breadth and depth of our distribution relationships. Total reported net outflows for the year were £0.523bn (FY25: net inflows £3.687bn). This figure includes net outflows of £3.329bn relating to the end of the Perspective contract.

Assets Under Management and Influence¹ ("AUM/I") closed the year at £24.216bn, an increase of £2.391bn or 11.0% from £21.825bn at March 2025. Removing Perspective, underlying AUM/I¹ increased from £18.942bn to £24.216bn, a £5.274bn or 27.8% increase. The underlying organic growth is exceptional and underscores the pace at which adviser adoption of our proposition continues to accelerate.

Paradigm revenue increased by 8.1% to £6.8m (FY25: £6.3m). Adjusted operating profit increased by 4.4% to £1.9m, with margin at 28.1%. This reflects a deliberate and considered decision to invest in capability and distribution capacity within Paradigm during the year. These investments are designed to generate returns over the medium term and to widen Paradigm's reach within the mortgage and intermediary market. We view this as a sensible allocation of capital for a business that remains strategically important to the Group.

Operational Progress and Strategic Development

FY26 has been a year of focused operational execution. We have continued to invest in our people, our processes and our adviser-facing capabilities, while maintaining the discipline and clarity of purpose that has underpinned our progress over many years.

We remain a single-channel business, operating exclusively through independent financial advisers. We champion advisers, not compete with them. Our role is to provide IFAs with a high-quality, platform-agnostic investment management service that delivers outstanding client outcomes while preserving the primacy of the adviser-client relationship. This alignment of interest is fundamental to who we are.

The number of firms using our investment services increased by 9.7% to 1,218 at March 2026. Asset growth has come from both the onboarding of new firms and from increased penetration within existing relationships. Adviser retention remains strong and is supported by consistent investment delivery, pricing stability, and the quality of support that our commercial and specialist teams provide.

During the year, we strengthened the management team with the appointment of a new Head of Marketing, reflecting our commitment to brand development and the quality of our communications with advisers as the business continues to scale. Looking forward, we will continue to build our capabilities to ensure we remain well positioned to capture the significant opportunity ahead of us within the UK-managed portfolio market. Our investment management services are now available across 20 UK adviser platforms, ensuring that advisers and their clients can access our portfolios through the platform that best suits their needs.

Market Development and Industry Trends

The structural backdrop for outsourced investment management in the UK continues to develop in ways that strongly favour scalable specialist investment managers with deep adviser relationships, quality investment propositions and efficient operating models. We have long anticipated and positioned ourselves to benefit from these trends.

Today, assets held on UK adviser platforms likely exceeds £1 trillion. As we have previously predicted, the managed portfolio service market has reached over £200bn, approximately 20% of the advised Platform market, having practically doubled in size over the past three years, reflecting the increasing reliance of advisers on investment managers to assist and support their clients. We believe this market has the potential to continue to grow and reach 40%-50% of the adviser platform market, underpinned by the ongoing shift towards IFAs delegating the discretionary investment management decisions for a client's portfolio to a third party Discretionary Investment Manager, i.e. MPS provider such as Tatton, while retaining overall responsibility for the client relationship and suitability of the mandate. The driver of this growth is well understood. Advisers face increasing regulatory complexity, heightened client expectations and growing demands on their time and expertise. In this environment, the ability to delegate investment management to a trusted partner, one who does not compete with advisers and who delivers consistent, high-quality outcomes, is more valuable than ever.

Industry consolidation remains a defining and positive evolution of the UK advice sector. With many IFAs approaching retirement, consolidation provides a clear and responsible route to succession. It enables advisers to realise value from the businesses they have built while ensuring continuity of service for clients and preserving the principles of independent advice. It also supports the creation of enduring enterprises capable of bringing through the next generation. Furthermore, scale enhances resilience as larger advisory groups are better equipped to manage regulatory complexity, and consolidation can also improve career pathways and support talent retention which should help benefit clients and contribute to the long-term sustainability of the profession. When carried out responsibly and without excessive financial leverage, consolidation has the potential to enhance client outcomes. Greater scale enables firms to invest in technology, operational support and service infrastructure, increasing their capacity to serve more clients effectively while maintaining high standards of advice and oversight.

Reflecting these structural dynamics, during the year we committed up to £10 million to support the development of Absolute Financial Management Limited, a consolidator focused on low-leverage, long-term stewardship and the preservation of independent, whole-of-market advice. The purpose of this investment is to provide retiring advisers with a credible route to transition their businesses into a larger organisation that maintains the core principles of client service, value and outcome-focused advice.

We believe this measured approach to consolidation supports the long-term health of the IFA sector and Tatton will continue to engage constructively with responsible consolidators and advisory firms, pursuing opportunities in a disciplined manner, consistent with our long-term strategy.

Fee pressure across the broader value chain particularly within platform pricing and underlying fund management remains a feature of the market. By contrast, and as we have long predicted, managed portfolio pricing has stabilised at approximately 15 basis points, a level that validates our strategic positioning and reinforces the sustainability of our margins. Our ability to deliver high-quality investment management at this price point while maintaining strong and improving margins is a reflection of the efficiency and scalability of our operating model.

Technology adoption across the sector is accelerating, with automation, advanced analytics and artificial intelligence increasingly embedded within advisory processes. These tools are enhancing efficiency, supporting more informed decision making and allowing advisers to focus more of their time on client relationships. The integration of AI in particular is gathering momentum and is already contributing to improved workflow and insight across the profession.

However, technological capability does not replace the core attributes that define high-quality advice. Financial planning remains rooted in professional judgement, accountability and the confidence clients place in their adviser. As digital tools become more sophisticated, considerations around accuracy, validation and oversight become ever more important. In this context, trust remains the cornerstone of financial services. Our growth has been driven by earning the confidence of advisers through consistent delivery and disciplined investment management. Technology strengthens the proposition, but enduring relationships and professional standards remain fundamental.

Our Strategic Vision and Priorities

Our strategic vision remains consistent: to deliver long-term value through sustainable growth, underpinned by a trusted partnership model. In pursuit of this, the Board remains committed to the following strategic objectives:

Accelerating Asset Growth. We are targeting Assets Under Management and Influence¹ ("AUM/I") of £30bn by March 2029. With three years remaining we are confident in our ability to meet or exceed this target. Central to this ambition is our commitment to generating strong net inflows each year through consistent adviser engagement and continued proposition development. The structural growth in the MPS market, combined with the breadth of our distribution network, provides a credible and compelling pathway to delivery.

Broadening Distribution Reach. Building on the momentum of recent years, we will continue to develop strategic relationships with larger advisory firms while maintaining and deepening our engagement with the full breadth of the IFA community. Our platform-agnostic, adviser-centric model is well suited to all sizes of firms.

Selective Partnerships, Acquisitions and International Opportunity. Organic growth remains our primary driver and the most reliable engine of compounding long-term value. However, we also recognise that selective acquisitions or strategic partnerships may, in the right circumstances, accelerate scale, enhance capability or extend our distribution reach. The Board will continue to evaluate such opportunities with discipline, where there's a clear strategic logic. In parallel, we are maintaining a watching brief on international markets where structural characteristics bear similarities to the early development of the UK outsourced investment sector. Any international activity would be cautious, more likely than not be partnership-led, and subject to exacting financial and operational criteria.

Strengthening Paradigm. We aim to continue to improve Paradigm's reach within the mortgage and intermediary market, expanding the number of firms engaged with the business and increasing the depth of support we provide. The investment made in FY26 will begin to bear fruit in the years ahead, and we remain committed to building Paradigm into a more significant and influential presence within its market.

Across all of these priorities, financial discipline and operational quality remain paramount to achieving our strategic vision.

Outlook

Tatton Asset Management enters FY27 with strong underlying momentum and a clear sense of strategic direction. The core business has delivered another year of excellent organic growth. Our adviser network has expanded, our margins have improved, and our investment proposition continues to attract recognition across the market.

We remain mindful of the macroeconomic and geopolitical uncertainties and periods of market volatility are likely to persist. However, our experience has consistently demonstrated that our business is resilient through such periods. Adviser demand for outsourced investment management is structural rather than cyclical, and our model is built for precisely this kind of environment.

Our focus in the year ahead will remain on what we do best, delivering excellent investment outcomes for clients, supporting IFA partners with unrivalled service and expertise, and building an organisation that is capable of sustaining growth over the long term. We will continue to invest in our people, our infrastructure and our relationships, ensuring that as the business scales, the quality of what we deliver scales with it.

With a clear strategy, a committed team and the continued trust of our adviser partners, we are confident in our ability to continue to make progress and deliver sustainable growth and long-term value for all our stakeholders.

PAUL HOGARTH

Chief Executive Officer

1.   Alternative performance measures are detailed in note 27.

Chief Investment Officer's Report

Long-term Focus During Short-term Volatility

Service Development

TAM's commitment to the adviser community is steadfast and our focus on service for advisers and their clients remains at the core of this. Our efforts remain focused on relationship building by meeting and understanding the advisers who recommend our investment management services to their clients and using this knowledge to improve.

We have broadened the reach of our distribution by expanding our 'Tatton on the Road' event programme and engaging with more IFA industry bodies as our footprint grows. Face-to-face interaction with the adviser community is a core feature of our success. Our understanding of adviser needs is built through participating in hundreds of events and meetings which provide the feedback we need to continually improve.

As such we have made significant improvements to our proprietary technology suite, the Tatton Portal, to make business engagement with Tatton straightforward, facilitating client management and providing resources to educate clients.

Our communications are relevant, and our video updates, market insights and popular investment webinars are becoming embedded in adviser client communication tools.

As I have reported before, developing service-focused IFA relationships built on deep understanding of their needs and delivering consistent risk appropriate returns for investors remain compelling in a highly competitive environment.

25/26 Capital Markets and Returns

Our investment process is built on long-term portfolio stewardship rather than short-term market movements. The past year has generated significant market disruption and I am pleased that we have once again generated positive outcomes for our portfolio investors.

Despite challenging macroeconomic narratives and fractious global politics, capital market returns over the last year have been strong. April 2025 started with Donald Trump's "Liberation Day" tariffs and a sharp sell-off in global equities, but the so-called TACO trade ("Trump Always Chickens Out") against the backdrop of resilient corporate earnings growth became potent fuel for stock market returns thereafter.

Markets largely shrugged off trade and geopolitical tensions over the summer, and were buoyed by a Federal Reserve interest rate cut in the autumn. Although volatile US politics bled into volatile prices, sometimes by heightening economic uncertainty (tariffs) and sometimes by directly impacting liquidity (the autumn government shutdown), US company earnings growth continued to be strong throughout the year, which provided a solid basis for returns.

The end of 2025 saw a rotation out of big US tech companies. This was powered by expectations of resurgent global growth, due to upcoming fiscal spending and a wave of AI infrastructure investment from the tech giants themselves. It benefitted the traditional sectors of the economy, and European companies in particular. The rotation continued in the first few months of 2026, benefitting US small cap stocks too. Throughout this, investors stopped viewing debt-financed AI spending from the big tech firms as a sign of growth, and instead came to see it as a potential drag on returns.

This was not the same fear as the 'AI bubble' talk we heard so much about last year, quite the opposite in fact. In the last few months, investors have grown increasingly anxious about AI's potential to disrupt large swathes of the economy. New AI models looked like they might make software-as-a-service firms obsolete in the near future, leading to a sharp sell-off in software company shares. Far from AI being overhyped, the prevailing anxiety became that it might be too successful.

In February 2026, it was not just software firms that suffered from these fears. Panic started to spread of a potential macroeconomic slowdown, due to AI-related job losses and obsolescence. Even the undisputed winners from AI (like chipmaker Nvidia) began to suffer, as investors started to fear that there might be no customers left. To be clear, there has been little sign of this in the recent labour market data, but that has not stopped the gloomy predictions.

The other source of market anxiety in February was the woes in the private credit sector. Defaults and tighter lending posed a problem for companies dependent on private funding, but comparisons to the 2008 subprime mortgage crisis always looked far-fetched. Private credit firms simply cannot create money in the way banks can, which limits overall leverage in the system.

Of course, the US and Israel's war on Iran has now made previous macroeconomic narratives all but obsolete. The ensuing oil shock raised inflation and interest rate expectations, leading to sell-offs in both stocks and bonds. Markets are deeply unsure of how the war will pan out, and volatility through March reflected that.

Outlook

The recent oil shock has thrown the outlook into deep uncertainty. For markets, the key issues are how long the war will last, and what damage might be done along the way. Milder predictions suggest a short and sharp war, cutting off short-term oil supply lines through the Strait of Hormuz but not damaging long-term oil and gas production. On the more extreme side, energy infrastructure across the Middle East could be severely damaged, holding back global supply for several years and causing years of stagflation.

Oil prices have risen sharply in recent months, reflecting the immense problems for near-term oil supply. However, oil futures contracts are still well below current prices, suggesting a renormalisation of supply and demand in the next couple of years. That tells us that markets are still betting on the mild war predictions. The fact stock prices have not tumbled even lower also backs that up.

In the first few weeks of the war, none of the sides involved looked particularly intent on damaging long-term oil and gas production. That restraint has been tested as the war has raged on but, right now, it looks as though the US and Iran have stepped back from that particular precipice. Donald Trump's recent proposal for a plan to end the war backs up the feeling many have that he is looking for a way out. Even if that is true, that does not mean he will be able to find one in the short-term.

Undoubtedly, there are nervous times ahead for markets, but we should not confuse not knowing what might happen with thinking that the worst will happen. The risks from the Iran war are high, but the chance of a broad recovery is high too. Recoveries typically happen quickly, and investors that sell in panic can often miss out on the gains that come afterward.

If the war de-escalates, there is good reason to think that global growth can resume at a decent pace. Before war broke out, growth signals were improving across the world and inflation pressures were dissipating. Granted, the threat of AI disruption spooked many investors. But the promise of the AI theme has always been that productivity gains would feed back into new opportunities, ultimately boosting wage growth and propelling the world economy in a virtuous cycle. If oil prices come down, and futures pricing suggests they will, that cycle is still achievable.

The past year has tested our investment process and team, but our structure and discipline has allowed us to get the best out of markets that are increasingly dominated by AI and geopolitics. Our blend of on-platform investments and overlay funds allows us to be nimble and respond to major changes to risk reward trade-offs, of which we are likely to see many.

In these deeply uncertain times, it can be easy to get caught up in day to day changes, when our focus, as ever, should be on long-term growth and risk management. At Tatton, we take pride in the strength of this process and in the commitment of our investment team in delivering expected returns for over ten years.

LOTHAR MENTEL

Chief Investment Officer

Investment Portfolio Returns

1 April 2025 - 31 March 2026

Tatton investment returns (%) - core MPS product set (after discretionary fund management ("DFM") charge and fund costs)

	TATTON MANAGED	TATTON TRACKER	TATTON BLENDED	TATTON ETHICAL	ARC PCI1
Defensive	7.7	7.0	7.3	8.1	6.2
Cautious	9.5	9.0	9.3	9.8	9.4
Balanced	11.4	10.9	11.2	11.3	9.4/10.92
Active	13.2	12.9	13.0	13.0	10.9
Aggressive	14.4	14.3	14.3	14.1	12.3
Global Equity	16.9	16.3	16.6	15.7	12.3

3 years, 1 April 2023 - 31 March 2026

Tatton investment returns (%) - core MPS product set (annualised, after DFM charge and fund costs)

	TATTON MANAGED	TATTON TRACKER	TATTON BLENDED	TATTON ETHICAL	ARC PCI1
Defensive	5.3	5.8	5.6	7.0	4.6
Cautious	7.1	7.6	7.4	7.9	6.4
Balanced	8.5	9.0	8.8	8.7	6.4/7.32
Active	9.8	10.4	10.1	9.4	7.3
Aggressive	10.9	11.3	11.1	9.9	8.1
Global Equity	12.9	13.2	13.1	10.7	8.1

1.    ARC PCI - Asset Risk Consultants Private Client Indices ("PCI").

2.    Balanced Portfolios are measured against both ARC Balanced Asset PCI and ARC Steady Growth PCI as in risk terms the Balanced Portfolios lie in the middle of these Indices.

Chief Financial Officer's Report

Measured Growth, Enduring Value

Overview

FY26 has been another year of strong financial performance for Tatton Asset Management, with disciplined organic growth in revenue and profitability once again demonstrating the resilience and scalability of the Group's business model, even as geopolitical uncertainty and event-driven market volatility provided a testing backdrop throughout the period.

The year was defined in part by a specific and well-understood transition: the conclusion of the Perspective Financial Group contract. These outflows were anticipated, planned for and executed in an orderly manner. Strip that aside, and the underlying business delivered an exceptional result with underlying AUM/I¹ growth of 27.8% (stated after the Perspective outflows; reported AUM/I¹ growth was 11.0%), with adviser net inflows remaining broadly consistent with the previous year's record level and further underpinned by a long and consistent track record of investment performance and service quality.

The Group's strong cash generation and high liquidity continue to underpin a robust balance sheet. This financial strength gives us the flexibility to invest in future growth including our commitment to support Absolute Financial Management Limited, a consolidator built on the principles of low leverage and the preservation of independent, whole-of-market advice, while maintaining our progressive approach to shareholder returns.

Income statement highlights

The financial results for the year reflect the continued execution of our strategy, with revenue growing 20.1% to £54.4m and Group adjusted operating profit¹ increasing 24.1% to £28.5m. The adjusted operating profit margin¹ expanded to 52.3%, compared with 50.6% in the prior year, reflecting both the operational leverage inherent in our scalable business model and a continued favourable shift in revenue mix as investment-related income grows as a proportion of the Group total. These results are a further demonstration of the quality and durability of the underlying business.

Tatton remained the primary driver of Group performance. Tatton revenue increased 22.0% to £47.6m, with assets under management and influence¹ closing the year at £24.216bn, representing growth of 11.0%, or 27.8% on an underlying basis. Underlying net inflows¹ were consistently strong throughout the period, with particular momentum into the MPS range. The MPS's breadth of risk profiles and investment styles continues to attract adviser demand, supported by a demonstrable long-term track record of investment performance and a commitment to client service quality that has become a distinguishing feature of the proposition. Investment-related income now represents 87% of total Group revenue and given the structural growth dynamics of the MPS market and our continued strategic focus in this area, we expect this proportion to increase further in the years ahead. Tatton's adjusted operating profit¹ grew 23.8% to £30.8m, with the adjusted operating profit margin¹ strengthening to 64.8%, compared with 63.8% in FY25. Statutory operating profit for the segment was £29.0m.

Paradigm contributed revenue of £6.8m, an increase of 8.1% on the prior year, with mortgage completions rising to £18.0bn (FY25: £14.2bn). Adjusted operating profit¹ was £1.9m, with the adjusted operating profit margin¹ of 28.1% compared to 29.0% in FY25, reflecting deliberate investment in operational capacity and member services as Paradigm scales to support anticipated future growth.

Reconciliation between adjusted operating profit and statutory operating profit

£m	FY26	FY25
Adjusted operating profit	28.5	22.9
IFRS 2 Share Option Charges	(2.9)	(1.5)
Amortisation of Acquired intangible	(0.7)	(0.6)
Exceptional items and Fair value adjustments	(0.6)	-
Operating loss due to non-controlling interest	(0.1)	(0.1)
Operating profit	24.2	20.7

Cost base and investment

Group administrative expenses increased by £5.6m in the year, reflecting both planned strategic investments and the impact of inflationary pressures across the cost base. The Group's results include £4.3m of separately disclosed items (FY25: £2.3m). Excluding these items, underlying cost growth was £3.6m, or 16%, driven principally by increased investment in marketing and distribution activity and by higher discretionary variable pay reflecting the strong trading performance of the year.

Personnel costs remain the most significant component of the cost base, representing over 60% of total underlying expenses, and increased by 12% year on year. This reflects three factors: a Group-wide average salary increase of 5%, implemented to support talent retention and recruitment in a competitive market; selective new hires to strengthen our marketing, distribution and operational teams; and an increase in discretionary variable pay, which accounted for 27% of total personnel costs in the year.

Average headcount increased to 120 (FY25: 113), as set out in note 13, consistent with our continued investment in the capabilities required to support the Group's growth ambitions.

Investment in Absolute Financial Management Limited

This year, the Group invested £4.7m as part of a broader commitment of up to £10.0m into Absolute Financial Management Limited, an Inflexion Private Equity backed business. The investment in ordinary share capital is held at fair value, whilst the investment in preference shares is held at amortised cost with £0.1m of associated interest income recognised within Finance Income during the period.

As a long-standing champion of the IFA community, this investment is consistent with TAM's ethos of providing practical support for advisers, in this instance whether seeking to retire and realise the value of their practice, or looking to benefit from the resources and support of a larger group structure.

A key strategic consideration underpinning this investment is the preservation of continuity for both advisers and their clients. Offering a trusted and well-structured destination for transitioning advisers protects the established client relationships and assets under management held within the Group, but as Absolute Financial Management Limited continues to grow, positions TAM to benefit from a broader and increasingly engaged distribution network. Together, these outcomes underpin the Group's strategic ambition of delivering sustainable, long-term growth in assets under management, and reinforces TAM's reputation as the partner of choice for the independent financial adviser community.

Results of joint ventures

The Group results include a share of loss from joint ventures of £0.1m (FY25: £0.1m loss). The carrying value of our investments in joint ventures has been reviewed and no impairment is deemed necessary.

Separately disclosed items

Separately disclosed items are adjusting items to operating profit and total £4.3m (FY25: £2.3m), comprising:

·	£2.9m share-based payment costs (FY25: £1.5m);
·	0.7m amortisation of acquisition-related intangible assets (FY25: £0.7m);
·	0.6m exceptional items and fair value adjustments (FY25: £nil), being one-off project costs related to the transfer to a new Authorised Corporate Director ("ACD"); and
·	£0.1m operating loss relating to non-controlling interest.

Alternative performance measures ("APMs")

APMs are financial measures of historical or future financial performance, financial position or cash flow, other than financial measures defined under IFRS. Further information as to the reconciliation between the two measures are provided in note 27. A reconciliation between statutory and adjusted operating profit for the year ended 31 March 2026 with comparatives is shown in the table on the previous page.

The APMs provide additional information to investors and other external stakeholders to provide a fuller understanding of the Group's results of operations as supplemental measures of performance. The APMs are used by the Board and management to analyse the business and financial performance, track the Group's progress and help develop long-term strategic plans. Some APMs are also used as key management incentive metrics.

Finance income

The Group has recognised net finance income of £1.1m (FY25: £0.9m). This primarily reflects £1.0m interest received on the Group's own cash balances which increased from £32.1m to £33.9m over the year, and £0.1m interest received in respect of the Group's investment in Absolute.

Taxation

The Group's tax charge for the year is £6.6m (FY25: £5.6m), an effective tax rate of 26.1% (FY25: 25.9%) broadly in line with the UK statutory rate. A deferred tax asset of £1.6m (FY25: £2.9m) has been recognised, primarily in respect of unexercised share options whose value continues to track TAM's share price. This deferred tax asset is expected to be recoverable against future profits.

Statement of financial position and cash

The Group closed the year in a strong financial position, with net assets of £55.0m (FY25: £50.6m) and cash and cash equivalents - comprising cash, money market funds and bank deposits - of £33.9m (FY25: £32.1m). The business remains highly cash-generative, characterised by a short working capital cycle that converts profits into cash efficiently. Cash from operating activities was £28.8m (FY25: £24.6m), with net cash and cash equivalents increasing by £1.7m over the course of the year.

The principal non-operating cash flows in the period were as follows. On the inflow side, the Group received £1.1m from the issue of shares and exercise of share options (FY25: £0.3m) and £1.0m in interest on corporate cash held in bank accounts and money market funds (FY25: £1.0m). Outflows in the year included dividend payments of £13.0m (FY25: £10.4m), reflecting the Board's continued commitment to shareholder returns; investment in the Group's own shares of £4.9m; an initial investment of £4.7m in Absolute Financial Management, consistent with the Group's strategic objective of supporting responsible consolidation within the IFA sector; and corporation tax payments of £5.1m (FY25: £5.9m).

Working capital

At 31 March 2026, trade and other payables increased by £1.5m to £12.7m (FY25: £11.2m), largely due to an increased provision relating to variable pay and cash bonuses arising from the strong financial performance delivered in the current year. In addition, mortgage procuration fees payable have also increased in line with mortgage completions, specifically towards the end of the financial year. Trade and other receivables have increased to £7.4m (FY25: £6.5m) reflecting revenue growth and the timing of expense billing across the year end.

Capital allocation and liquidity management

Total shareholders' equity as at 31 March 2026, made up of share capital, share premium, retained earnings and other reserves, increased to £55.0m (FY25: £50.6m). Delivering sustainable value to our shareholders, and maintaining a disciplined and efficient approach to managing shareholder capital, which remains a primary commitment of the Board.

Our financial resources are continually kept under review, incorporating comprehensive stress and scenario testing which is formally reviewed and agreed at least annually via the Internal Capital Adequacy and Risk Assessment ("ICARA"). The Group continues to maintain a robust capital base, with a surplus of capital above the regulatory minimum of £16.1m at 31 March 2026, which takes into account the proposed final dividend for the year.

The Group includes two regulated entities: Tatton Investment Management Limited, 100% owned and controlled by the Group, and 8AM Global Limited, 50% owned and controlled by the Group. Both companies are categorised as MIFIDPRU non-SNI firms under the Financial Conduct Authority's ("FCA") Investment Firms Prudential Regime ("IFPR"). As such, the Group, being the parent entity, is obliged to adhere to MIFIDPRU rules within the IFPR framework and reports to the FCA on a prudential consolidation basis. The Group forecasts surplus capital and liquidity, factoring in anticipated outflows and proposed dividends, to ensure the perpetual adequacy of capital and liquidity.

	31-MAR 2026	31-MAR 2025
Total shareholder funds	55,047	50,552
Less: Foreseeable dividend	(9,106)	(5,700)
Less: Non-qualifying assets	(24,411)	(21,428)
Total qualifying capital resources	21,530	23,424
Less: Capital requirement	(5,442)	(4,561)
Surplus capital	16,088	18,863
% Capital resource requirement held	396%	514%

As we grow, we will continue to invest in strategic initiatives by prioritising organic investment in our product offering and people capability, and by selectively pursuing strategically aligned investments and acquisitions.

Return on capital employed¹ was 53.4% in the year (FY25: 48.0%), highlighting our continued ability to deploy capital efficiently. The Board regularly reviews the Group's capital structure to ensure alignment with our strategic objectives and will respond, should the needs of our business and the market change.

Earnings per share ("EPS")

Basic EPS increased by 16.3% to 30.75p (FY25: 26.43p), driven by the strong growth in profit after tax. Removing the impact of separately disclosed items, adjusted fully diluted EPS¹ has increased by 22.3% to 35.05p (FY25: 28.65p), with adjusted diluted EPS of 35.44p (FY25: 29.17p).

Dividends

The Board is recommending a final dividend of 15.0p (FY25: 9.5p), following the interim dividend of 12.0p (FY25: 9.5p) paid in the year. This gives a total full year dividend of 27.0p (FY25: 19.0p), an increase of 42.1% on the prior year. The proposed dividend reflects the Board's underlying confidence in the business and its future prospects, and we maintain our policy of paying a dividend that is approximately 70% of adjusted earnings. If approved at the Annual General Meeting, the final dividend will be paid on 5 Aug 2026 to shareholders on the register on 26 June 2026 with the ex-dividend date being 25 June 2026.

Risk management

Risk is carefully monitored and managed across each business line, with regular reviews of key exposures. Principal risks and key performance indicators are detailed in the Annual Report. Our strategic approach to capital, regulation and investment is designed to ensure long-term resilience, while continuing to deliver growth and value.

Conclusion

FY26 has reaffirmed the durability of TAM's business model and the strength of our adviser partnerships. Underlying AUM/I¹ growth of 27.8% delivered against a backdrop of geopolitical uncertainty and event-driven market volatility, and alongside the orderly conclusion of the Perspective Financial Group contract speaks to the quality of the proposition and the depth of adviser engagement. The Group enters FY27 in a position of financial strength: net assets of £55.0m, cash and equivalents of £33.9m, a return on capital employed of 53.4% and a surplus over regulatory capital of £16.1m. This balance sheet provides the flexibility to invest in our strategic priorities including our continued commitment to Absolute Financial Management Limited while sustaining a progressive distribution policy, reflected in the proposed total dividend of 27.0p, an increase of 42.1% on the prior year.

PAUL EDWARDS

Chief Financial Officer

1.   Alternative performance measures are detailed in note 27.

CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2026

	NOTE	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Revenue	5	54,436	45,309
Share of loss from joint ventures	14	(91)	(148)
Administrative expenses		(30,110)	(24,475)
Operating profit	6	24,235	20,686
·  Share-based payment charges	7	2,896	1,503
·  Amortisation of acquisition-related intangible assets	7	657	657
·  Operating loss relating to non-controlling interest	7	111	100
·  Fair value adjustment to acquisition-related contingent consideration	7	42	-
·  Exceptional items	7	544	-
Adjusted operating profit1		28,485	22,946
Finance income	8	1,193	1,033
Finance costs	9	(118)	(123)
Profit before tax		25,310	21,596
Taxation charge	10	(6,594)	(5,594)
Profit and total comprehensive income for the financial year		18,716	16,002
Profit and total comprehensive income attributable to owners of the Parent Company		18,840	16,141
Loss and total comprehensive income attributable to non-controlling interests		(124)	(139)
Earnings per share - Basic	11	30.75p	26.43p
Earnings per share - Diluted	11	30.22p	26.21p
Adjusted earnings per share - Basic1	11	36.06p	29.42p
Adjusted earnings per share - Diluted1	11	35.44p	29.17p
Adjusted earnings per share - Fully diluted1	11	35.05p	28.65p

1.      See note 27.

All revenue, profit, and earnings are with respect to continuing operations.

There were no other recognised gains or losses other than those recorded above in the current or prior year; therefore, a Statement of Other Comprehensive Income has not been presented.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 MARCH 2026

	NOTE	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Non-current assets
Investments in joint ventures	14	5,137	5,256
Goodwill	15	9,796	9,796
Financial assets at fair value through profit or loss	22	155	-
Financial assets at amortised cost	22	4,510	-
Intangible assets	16	3,218	3,493
Property, plant and equipment	17	943	932
Deferred tax assets	20	1,595	2,883
Other receivables	18	147	-
Total non-current assets		25,501	22,360
Current assets
Trade and other receivables	18	7,353	6,538
Financial assets at fair value through profit or loss	22	1,260	1,133
Corporation tax		247	291
Cash and cash equivalents		33,862	32,119
Total current assets		42,722	40,081
Total assets		68,223	62,441
Current liabilities
Trade and other payables	19	(12,731)	(11,232)
Total current liabilities		(12,731)	(11,232)
Non-current liabilities
Other payables	19	(445)	(657)
Total non-current liabilities		(445)	(657)
Total liabilities		(13,176)	(11,889)
Net assets		55,047	50,552
Equity
Share capital	23	12,264	12,110
Share premium account		15,752	15,614
Own shares	24	(4,387)	(2,363)
Other reserve		2,041	2,041
Merger reserve		(28,968)	(28,968)
Retained earnings		58,357	52,156
Equity attributable to owners of the Parent Company		55,059	50,590
Non-controlling interest		(12)	(38)
Total equity		55,047	50,552

The financial statements were authorised and approved by the Board of Directors on 15 June 2026 and were signed on its behalf by:

PAUL EDWARDS, DIRECTOR

Company registration number: 10634323

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2026

	NOTE	SHARE CAPITAL (£'000)	SHARE PREMIUM (£'000)	OWN SHARES (£'000)	OTHER RESERVE (£'000)	MERGER RESERVE (£'000)	RETAINED EARNINGS (£'000)	TOTAL EQUITY ATTRIBUTABLE TO SHAREHOLDERS (£'000)	NON-CONTROLLING INTEREST (£'000)	TOTAL EQUITY (£'000)
At 1 April 2024		12,102	15,487	(3,278)	2,041	(28,968)	45,892	43,276	58	43,334
Profit and total comprehensive income		-	-	-	-	-	16,141	16,141	(139)	16,002
Dividends	12	-	-	-	-	-	(10,440)	(10,440)	-	(10,440)
Share-based payments	25	-	-	-	-	-	1,160	1,160	50	1,210
Deferred tax on share-based payments	20	-	-	-	-	-	203	203	-	203
Current tax on share-based payments		-	-	-	-	-	158	158	-	158
Issue of share capital on exercise of employee share options		8	127	-	-	-	-	135	-	135
Own shares acquired in the year	24	-	-	(50)	-	-	-	(50)	-	(50)
Own shares utilised on exercise of options	24	-	-	965	-	-	(965)	-	-	-
Change in non-controlling interest		-	-	-	-	-	7	7	(7)	-
At 31 March 2025		12,110	15,614	(2,363)	2,041	(28,968)	52,156	50,590	(38)	50,552
Profit and total comprehensive income		-	-	-	-	-	18,840	18,840	(124)	18,716
Dividends	12	-	-	-	-	-	(13,017)	(13,017)	-	(13,017)
Share-based payments	25	-	-	-	-	-	2,455	2,455	-	2,455
Deferred tax on share-based payments	20	-	-	-	-	-	(1,246)	(1,246)	-	(1,246)
Current tax on share-based payments		-	-	-	-	-	1,428	1,428	-	1,428
Issue of share capital on exercise of employee share options		154	138	(154)	-	-	-	138	-	138
Own shares acquired in the year	24	-	-	(4,928)	-	-	-	(4,928)	-	(4,928)
Own shares utilised on exercise of options	24	-	-	3,058	-	-	(2,255)	803	-	803
Change in non-controlling interest		-	-	-	-	-	(4)	(4)	150	146
At 31 March 2026		12,264	15,752	(4,387)	2,041	(28,968)	58,357	55,059	(12)	55,047

The other reserve and merger reserve were created on 19 June 2017 when the Group was formed. The other reserve comprises the profits of the Group entities prior to the merger, and the merger reserve is the difference between the Company's capital and the acquired Group's capital, which has been recognised as a component of equity. The merger reserve was created through merger accounting principles on the share for share exchange on the formation of the Group. Both the other reserve and the merger reserve are non-distributable.

During the year, the Group's investment in Fintegrate Financial Solutions Limited changed from 53.36% to 56.67%. In the year ending FY25, the investment in Fintegrate Financial Solutions Limited changed from 56.49% to 53.36%.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2026

	NOTE	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Operating activities
Profit for the year		18,716	16,002
Adjustments:
Income tax expense	10	6,594	5,594
Finance income	8	(1,193)	(1,033)
Finance costs	9	118	123
Depreciation of property, plant and equipment	17	309	291
Amortisation of intangible assets	16	690	630
Share-based payment expense	25	1,871	1,413
Fair value gains on financial assets at fair value through profit or loss	22	(127)	(27)
Post-tax share of loss of joint venture less amortisation and impairment loss	14	91	148
Changes in:
Trade and other receivables		(815)	(1,241)
Trade and other payables		2,497	2,741
Cash generated from operations		28,751	24,641
Income tax paid		(5,131)	(5,889)
Net cash from operating activities		23,620	18,752
Investing activities
Dividends received from joint venture		80	-
Purchase of financial assets at fair value through profit or loss	22	(155)	(1,000)
Purchase of financial assets at amortised cost	22	(4,510)	-
Purchase of intangible assets	16	(415)	(437)
Purchase of property, plant and equipment	17	(322)	(68)
Interest received	8	1,046	1,033
Changes in fair value of contingent consideration	7	42	-
Payment of contingent consideration	22	(485)	(530)
Net cash used in investing activities		(4,719)	(1,002)
Financing activities
Dividends paid	12	(13,017)	(10,440)
Proceeds from the issue of shares		144	135
Proceeds from the exercise of options		950	125
Purchase of own shares	24	(4,928)	(50)
Repayment of loan liabilities	21	(22)	(23)
Repayment of lease liabilities	21	(285)	(216)
Net cash used in financing activities		(17,158)	(10,469)
Net increase in cash and cash equivalents		1,743	7,281
Cash and cash equivalents at the beginning of the period		32,119	24,838
Cash and cash equivalents at the end of the period		33,862	32,119

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 | General information

Tatton Asset Management plc (the "Company") is a public company limited by shares. The address of the registered office is Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND. The registered number is 10634323.

The Group comprises the Company and its subsidiaries. The Group's principal activities are discretionary fund management, the provision of compliance and support services to independent financial advisers ("IFAs"), the provision of mortgage adviser support services, and the marketing and promotion of multi-manager funds.

News updates, regulatory news, and financial statements can be viewed and downloaded from the Group's website, www.tattonassetmanagement.com. Copies can also be requested from: The Company Secretary, Tatton Asset Management plc, Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND.

The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 not to present its own income statement.

2 | Material accounting policies

The principal accounting policies applied in the presentation of the annual financial statements are set out below. The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in the consolidated financial statements.

2.1 Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with United Kingdom adopted international accounting standards and International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued by the International Accounting Standards Board ("IASB") and the Companies Act 2006. The financial statements of the Company have been prepared in accordance with UK Generally Accepted Accounting Practice, including Financial Reporting Standard 101 'Reduced Disclosure Framework' ("FRS 101").

The consolidated financial statements have been prepared on a going concern basis and prepared on a historical cost basis, except for financial assets and financial liabilities measured at fair value. The consolidated financial statements are presented in sterling and have been rounded to the nearest thousand (£'000). The functional currency of the Company is sterling, as this is the currency of the jurisdiction wherein all of the Group's sales are made.

The preparation of financial information in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event, or actions, actual events may ultimately differ from those estimates.

2.2 Going concern

The Board has reviewed detailed papers prepared by management that consider the Group's expected future profitability, dividend policy, capital position, and liquidity, both as they are expected to be and also under more stressed conditions. In doing so, the Directors have considered the current economic environment, with its high interest rates, high yet falling inflation, cost of living pressures, and the impact of climate change.

Whilst macroeconomic conditions and the impact of climate change may affect the Group, and are considered under the Group's principal risks, these are not considered to impact the going concern basis of the Group - the Board is satisfied that the business can operate successfully in these conditions but will continue to monitor developments in these areas. The Board uses the approved budget as its base case and then applies stress tests to this. In its stress tests, the Board has considered a significant reduction in equity market values, for example, if there was a repeat of the market impacts seen at the outbreak of COVID-19, or sudden and high volumes of outflows from AUM as a result of a reputational, regulatory, or performance issues. This would reduce revenue and profitability; however, the results of these tests show that there are still sufficient resources to continue as a going concern. There are not considered to be any plausible scenarios that would lead to the failure of the Company. The Board closely monitors KPIs and reports from management around investment performance, feedback from IFAs, and key regulatory changes or issues. See more information in the Directors' Report on pages 78 to 81. Accordingly, the Directors continue to adopt the going concern basis when preparing these financial statements.

2.3 Basis of consolidation

The Group's financial statements consolidate those of the Company and entities controlled by the Company (its subsidiaries) as at 31 March 2026. The Company controls a subsidiary if it has power over the investee, is exposed to, or has rights to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of these three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary.

All subsidiaries have a reporting date of 31 March, with Fintegrate Financial Solutions Limited, shortening its 2026 accounting period, from 30 June 2026 to 31 March 2026, in order to align with the wider group. In the case of joint ventures, those entities are presented as a single line item in the Consolidated Statement of Total Comprehensive Income and the Consolidated Statement of Financial Position.

All transactions between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-Group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the effective date of acquisition (when control is obtained), up to the effective date of disposal (when control of the subsidiary ceases), as applicable.

2.4 Adoption of new and revised standards

New and amended IFRS Standards that are effective for the current year

·	Amendments to IAS 21 - Lack of Exchangeability
·	Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments
·	Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity
·	Minor amendments to IFRS 1 - First-time Adoption of IFRS
·	Minor amendments to IFRS 7 - Financial Instruments: Disclosures
·	Minor amendments to IFRS 9 - Financial Instruments
·	Minor amendments to IFRS 10 - Consolidated Financial Statements
·	Minor amendments to IAS 7 - Statement of Cash Flows

The Directors adopted the new or revised Standards listed above, but they have had no material impact on the financial statements of the Group.

Standards in issue but not yet effective

The following IFRS and IFRIC interpretations have been issued but have not been applied by the Group in preparing these financial statements, as they are not yet effective. The Group intends to adopt these Standards and Interpretations when they become effective, rather than adopting them early.

Effective date periods beginning 1 January 2026 or later:

·	IFRS 18 - Presentation and Disclosure in Financial Statements
·	IFRS 19 - Subsidiaries without Public Accountability: Disclosures
·	Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments
·	Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9 and IFRS 7
·	Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendments to IFRS 10 and IAS 28

With the exception of the adoption of IFRS 18, the adoption of the above standards and interpretations is not expected to lead to any changes to the Group's accounting policies, nor to have any other material impact on the financial position or performance of the Group. The impact of IFRS 18 on the Group is currently being assessed and it is not yet practicable to quantify the effect of this standard on these consolidated financial statements; however, there is no impact on presentation for the Group in the current year. This will be applicable for the Group's FY2028 Annual Report.

2.5 Revenue

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for services provided in the normal course of business, net of discounts, VAT, and other sales-related taxes. Revenue is recognised when control is transferred and the performance obligations are considered to be met.

The Group's revenue is made up of the following principal revenue streams:

·	Fees for discretionary fund management services in relation to on-platform investment assets under management ("AUM"). Revenue is recognised daily, based on the AUM, on a continuous basis over the period in which the related service is provided.
·	Fees charged to IFAs for compliance consultancy services, which are recognised when performance obligations are met. Membership services include support and software income that is recognised on an over-time basis in line with access to the services. Membership services also includes specific services, such as regulatory visits and learning and development, and revenue is recognised in line with the service to the customer, at the point the service is provided.
·	Fees for providing investment platform services. Revenue is recognised on a daily basis, in line with the satisfaction of performance obligations, on the assets under administration held on the relevant investment platform.
·	Fees for mortgage-related services, including commissions from mortgage and other product providers and referral fees from strategic partners. Commission is recognised at a point in time when commission is approved for payment by the lender, which is the point at which all performance obligations have been met.
·	Fees for marketing services provided to providers of mortgage and investment products, which are recognised in line with the service provided to the customer.

Contract assets

A contract asset is initially recognised for revenue earned from services for which the receipt of consideration is conditional on the successful completion of the service and performance obligation. Upon completion of the service, the amount recognised as accrued income is reclassified to trade receivables. Contract assets are stated at amortised cost as reduced by appropriate allowances for estimated irrecoverable amounts and are presented as Accrued income in the notes to the financial statements.

Contract liabilities

A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a customer before the Group transfers the related goods or services. Contract liabilities are recognised as deferred income until the Group delivers the performance obligations under the contract (i.e., transfers control of the related goods or services to the customer), at which point revenue is recognised in line with the delivery of the performance obligation.

2.6 Finance income and finance expense

Finance income is recognised as interest accrued (using the effective interest method) and includes interest receivable on the Group's cash and cash equivalents, on funds invested outside the Group, and on preference share dividends accrued. Interest received is recognised as a cash flow from investing activities in the Consolidated Statement of Cash Flows.

Finance expense comprises the unwinding of discounts on contingent consideration and interest incurred on lease liabilities recognised under IFRS 16. Finance costs are recognised in the Consolidated Statement of Total Comprehensive Income using the effective interest rate method. Interest paid is recognised as a cash flow from financing activities in the Consolidated Statement of Cash Flows.

2.7 Separately disclosed items

Separately disclosed items may include Exceptional items as detailed below, but may also include other items that meet at least one of the following criteria:

·	It is a significant item, which may cross more than one accounting period;
·	It is a significant non-cash item, including share-based payment charges;
·	It has been directly incurred as a result of either an acquisition or divestiture, including amortisation of acquisition-related intangible assets or fair value changes of contingent consideration;
·	It is unusual in nature, e.g. outside of the normal course of business; or
·	The operating profit/(loss) relating to non-controlling interest is also removed, to reflect the adjusted operating profit attributable to the Company's shareholders.

The Board exercises judgement as to whether the item should be classified as an adjusting item within Separately disclosed items. Separately disclosed items are shown separately on the face of the Statement of Total Comprehensive Income and included within Administrative expenses or, in the case of amortisation on intangible assets relating to a joint venture, the cost is included within Share of profit/(loss) from joint ventures. Although some of these items may recur from one period to the next, operating profit has been adjusted for these items on a consistent basis to provide additional helpful information and enable an alternative comparison of performance over time. The alternative performance measures ("APMs") disclosed in note 27 are consistent with how the business performance is planned and reported within the internal management reporting to the Board. Some of these measures are also used for the purpose of setting remuneration targets.

2.8 Exceptional items

Exceptional items are disclosed and described separately in the financial statements to provide further information on items that are one-off and are material in size or nature and so are shown separately, due to the significance of their nature and amount. This includes items that are incremental to normal operations, such as costs relating to an acquisition, disposal, integration, or impairment losses; these do not reflect the business's trading performance and so are adjusted to ensure consistency between periods.

2.9 Goodwill and intangible assets

Goodwill from a business combination is initially recognised and measured as set out in note 2.12. Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units ("CGU") (or groups of CGUs) expected to benefit from the synergies of the combination. CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period. On disposal of a CGU, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

Following initial recognition, intangible assets are held at cost less any accumulated amortisation and any provision for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows (CGUs).

Intangible assets acquired separately are measured on initial recognition at cost. Any computer software licences acquired are capitalised at the cost incurred to bring the software into use, and are amortised on a straight-line basis over their estimated useful lives, which are estimated as being five years. An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following conditions have been demonstrated:

·	the technical feasibility of completing the intangible asset so that it will be available for use or sale;
·	the intention to complete the intangible asset and use or sell it;
·	the ability to use or sell the intangible asset;
·	how the intangible asset will generate probable future economic benefits;
·	the availability of adequate technical, financial, and other resources to complete the development and to use or sell the intangible asset; and
·	the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above.

Costs associated with developing or maintaining computer software programmes that do not meet the capitalisation criteria under IAS 38 are recognised as an expense as incurred.

Intangible assets acquired in a business combination and recognised separately from goodwill are recognised initially at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, client relationship intangible assets, brand intangible assets, and acquired software have a finite useful life and are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated using the straight-line method over their useful lives, estimated for all asset classes as 10 years.

Gains and losses arising from the derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying value of the asset. The difference is recognised in the income statement.

An assessment is made at each reporting date as to whether there is any indication that an asset in use may be impaired. If any such indication exists and the carrying values exceed the estimated recoverable amount at that time, the assets are written down to their recoverable amount. The recoverable amount is measured as the greater of fair value less costs to sell and value in use. Non-financial assets that have suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

2.10 Impairment

Assets that have an indefinite useful life are not subject to amortisation and are tested for impairment at each Statement of Financial Position date and whenever there is an indication at the end of a reporting period that the asset may be impaired. Assets subject to depreciation and amortisation are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Where the asset does not generate cash flows that are independent of other assets, the Group estimates the recoverable amount of each cash-generating unit ("CGU") to which the asset belongs. Impairment losses on previously revalued assets are recognised against the revaluation reserve as far as this reserve relates to previous revaluations of the same assets. Other impairment losses are recognised in the Statement of Total Comprehensive Income, based on the amount by which the carrying value of an asset or CGU exceeds its recoverable amount. The recoverable amount is the higher of the fair value less the costs to sell and the value in use. In assessing value in use, the estimated future cash flows are discounted to their present value, using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted. Impairment losses recognised with respect to CGUs are allocated first to reduce the carrying amount of any goodwill allocated to CGUs and then to reduce the carrying amount of other assets in the unit on a pro rata basis.

Where an impairment loss on intangible assets, excluding goodwill, subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, in such a way that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss to the extent that it eliminates the impairment loss that has been recognised for the asset in prior years. Any increase in excess of this amount is treated as a revaluation increase.

2.11 Property, plant and equipment

Property, plant and equipment assets are stated at cost, net of accumulated depreciation and accumulated provision for impairment. Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Principal annual rates are as follows:

·  computer, office equipment and motor vehicles - 20-33% straight-line; and

·  fixtures and fittings - 20% straight-line.

The estimated useful lives, residual values, and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or scrappage of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset, and is recognised in the Statement of Total Comprehensive Income.

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree, and the equity interest issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognised in the income statement as incurred.

2.12 Business combinations

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition date, except that: deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with IAS 12 'Income Taxes' and IAS 19 'Employee Benefits' respectively; liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 'Share-based payments' at the acquisition date (see below); and assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations' are measured in accordance with that standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.

When the consideration transferred by the Group in a business combination includes a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and is included as part of the consideration transferred in a business combination. Changes in fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the 'measurement period' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The payment of contingent consideration will be treated as an investing cash flow of the Group.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Any other contingent consideration is remeasured to fair value at subsequent reporting dates, with changes in fair value recognised in profit or loss. The unwinding of the discount rate where contingent consideration is discounted is recognised as a finance cost in the Statement of Comprehensive Income.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognised to reflect new information obtained about the facts and circumstances that existed as at the acquisition date that, if known, would have affected the amounts recognised as of that date.

2.13 Joint ventures

Joint ventures are entities in which the Company has an investment where it, along with one or more other shareholders, has contractually agreed to share control of the business and where decisions over the relevant activities require the unanimous consent of the joint partners. The results and assets and liabilities of joint ventures are incorporated in these financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, the Company initially records the investment in the Consolidated Statement of Financial Position at the fair value of the purchase consideration (cost) and adjusted thereafter to recognise the Company's share of the entity's profit or loss after tax and amortisation of intangible assets.

An investment in a joint venture is accounted for using the equity method from the date on which the investee becomes a joint venture. On acquisition of the investment in a joint venture, any excess of the cost of the investment over the Group's share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in which the investment is acquired. The Statement of Financial Position, therefore, subsequently records the Company's share of the net assets of the entity, plus any goodwill and intangible assets that arose on purchase, less subsequent amortisation. The Statement of Changes in Equity records the Company's share of other equity movements of the entity. At each reporting date, the Company applies judgement to determine whether there is any indication that the carrying value of joint ventures may be impaired.

If there is objective evidence that the Group's net investment in a joint venture is impaired, the requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group's investment. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment, in accordance with IAS 36, as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognised is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised, in accordance with IAS 36, to the extent that the recoverable amount of the investment subsequently increases. The Group discontinues the use of the equity method from the date when the investment ceases to be a joint venture.

2.14 Leases

At the inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease given in IFRS 16.

The Group recognises a right-of-use ("ROU") asset and a lease liability at the commencement date of the lease, with the exception of short-term leases (defined as leases with a lease term of twelve months or less). The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The ROU assets are subsequently depreciated on a straight-line basis over the shorter of the expected life of the asset and the lease term, adjusted for any remeasurements of the lease liability. At the end of each reporting period, the ROU assets are assessed for indicators of impairment in accordance with IAS 36.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group's incremental borrowing rate. The incremental borrowing rate is determined, where possible, by using recent third party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since the third party financing was received. The incremental borrowing rate depends on the term, country, currency, and security of the lease, and also the start date of the lease.

Lease payments included in the measurement of the lease liability comprise the following:

·	fixed payments, including in-substance fixed payments;
·	variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
·	amounts expected to be payable under a residual value guarantee; and
·	the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.

The lease liability is subsequently measured by adjusting the carrying amount to reflect the interest charge, the lease payments made, and any reassessment or lease modifications. The lease liability is remeasured if the Group changes its assessment of whether it will exercise a purchase, extension, or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the ROU asset,or is recorded in profit or loss if the carrying amount of the ROU asset has been reduced to zero.

Where the Group is an intermediate lessor in a sub-lease, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the ROU asset arising from the head lease, not with reference to the underlying asset.

2.15 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and short-term deposits held with banks by the Group. Cash equivalents are short-term (generally with an original maturity of three months or less), highly liquid investments that are readily convertible to a known amount of cash and that are subject to an insignificant risk of changes in value. Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.

Bank overdrafts that are repayable on demand and that form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose only of the Consolidated Statement of Cash Flows. At 31 March 2026 there were no balances drawn down on bank overdrafts (FY25: nil).

2.16 Financial instruments

Financial assets and financial liabilities are recognised in the Statement of Financial Position when the Group becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

All financial assets are recognised and derecognised on a trade date where the purchase or sale of a financial asset is under a contract with terms that require delivery of the financial asset within a timeframe established by the market concerned, and are initially measured at fair value, plus transaction costs, except for those financial assets classified as at fair value through profit or loss.

Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and bank balances, and trade and other payables.

Financial investments

Financial investments are classified as fair value through profit or loss ("FVTPL") if they do not meet the criteria of fair value through other comprehensive income ("FVOCI") or amortised cost. They are also classified as FVTPL if they are either held for trading or specifically designated in this category on initial recognition. Assets in this category are initially recognised at fair value and subsequently remeasured, with gains or losses arising from changes in fair value being recognised in the Statement of Comprehensive Income.

The Group's financial investments include investments in a regulated open-ended investment company that is managed and evaluated on a fair value basis in line with the market value, and an equity investment comprised of ordinary share capital. These financial assets do not meet the criteria of FVOCI or amortised cost as the asset is not held to collect contractual cash flows and/or selling financial assets, and the asset's contractual cash flows do not represent solely payments of principal and interest ("SPPI").

The Group also holds an equity investment in unconvertible redeemable preference shares, which is measured at amortised cost. These financial assets are held within a business model whose objective is to collect contractual cash flows, and those cash flows consist solely of preference share dividends that have the characteristics of interest.

Trade receivables

Trade receivables do not carry interest and are stated at amortised cost, as reduced by appropriate allowances for estimated irrecoverable amounts. They are recognised when the Group's right to consideration is only conditional on the passage of time. The financial assets are held in order to collect the contractual cash flows and those cash flows are payments of interest and principal only.

Impairment of financial assets

The Group applies the IFRS 9 simplified approach to measuring expected credit losses that uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due.

The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Group has, therefore, concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.

The expected loss rates are based on the payment profiles of sales over a period of twelve months before 31 March 2026 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. No impairment has been recognised in the year (FY25: £nil).

The Group applies the IFRS 9 standard approach to measuring expected credit losses for other receivables. To measure the lifetime expected credit losses, the Group has considered the probability of default, level of exposure, the age of the asset, collateral, and the wider macroenvironment. The Group defines default in line with IFRS 9, being a credit event indicating that a borrower is unlikely to pay its obligations. No impairment has been recognised in the year (FY25: £nil).

Trade and other payables

Trade and other payables, except for those which are financial liabilities at FVTPL, are recognised initially at fair value and are subsequently measured at amortised cost using the effective interest method, where applicable or required. These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial period, which are unpaid.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is (i) contingent consideration of an acquirer in a business combination, (ii) held for trading, or (iii) designated as at FVTPL. Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognised in profit or loss.

2.17 Taxation

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes those items of income or expense that are taxable or deductible in other years, and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the Statement of Financial Position date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary difference and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each Statement of Financial Position date and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the Statement of Financial Position date. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off the current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.

Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

2.18 Retirement benefit costs

The Group pays into personal pension plans for which the amount charged to income with respect to pension costs and other post-retirement benefits is the amount of the contributions payable in the year. Payments to defined contribution retirement benefit scheme are recognised as an expense when employees have rendered service entitling them to the contributions. Differences between contributions payable and paid are accrued or prepaid. The assets of the plans are invested and managed independently of the finances of the Group.

2.19 Equity, reserves and dividend payments

Share capital represents the nominal value of shares that have been issued. Retained earnings include all current and prior periods' retained profits or losses.

Dividend distributions payable to equity shareholders are included in other liabilities when the dividends have been approved at a general meeting prior to the reporting date.

2.20 Employee Benefit Trust

The Company provides finance to the EBT to purchase the Company's shares on the open market, in order to meet its obligation to provide shares when an employee exercises awards made under the Group's share-based payment schemes. Administration costs connected with the EBT are charged to the Statement of Comprehensive Income.

The cost of shares purchased and held by the EBT is deducted from equity in the Company and the Group. The assets held by the EBT are consolidated into the Group's financial statements. Any consideration paid or received for the purchase or sale of these shares is shown as a reduction in the reconciliation of movements in shareholders' funds. No gain or loss is recognised in the Statement of Other Comprehensive Income on the purchase, sale, issue, or cancellation of these shares.

2.21 Share-based payments

The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest. At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is recognised in profit or loss, such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to reserves. Fair value is measured by use of the Black-Scholes model or Monte Carlo model, as appropriate.

2.22 Climate change

The Group is continually developing its assessment of the impact that climate change has on the assets and liabilities recognised and presented in its financial statements. The potential impact of climate change on the Group's AUM and future net operating revenue generation is considered in the Principal Risks section of this Annual Report and Accounts. These considerations did not have a material impact on the financial reporting judgements and estimates in the current year. This reflects the conclusion that climate change is not expected to have a significant impact on the Group's short-term cash flows, including those considered in the going concern and viability assessments.

2.23 Operating segments

The Board is considered to be the chief operating decision maker ("CODM"). The Group comprises two operating segments, which are defined by trading activity:

·	Tatton - investment management services
·	Paradigm - the provision of compliance and support services to IFAs and mortgage advisers

Some centrally incurred overhead costs are allocated to the Tatton and Paradigm divisions on an appropriate pro rata basis. There remain central overhead costs within the Operating Group that have not been allocated to the Tatton and Paradigm divisions, which are classified as 'Unallocated' within note 4.

2.24 Critical accounting judgements and key sources of estimation uncertainty

In the process of applying the Group's accounting policies, which are described above, management have made judgements and estimations about the future that have an effect on the amounts recognised in the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Any sources of estimation uncertainty are disclosed appropriately, including the sensitivity of the carrying amounts to the methods, assumptions and estimates underlying their calculation. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Changes for accounting estimates would be accounted for prospectively under IAS 8.

Investments in joint ventures

Estimation uncertainty

Impairment of investments in joint ventures

Impairment exists when there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the net investment (a 'loss event') and where that loss event (or events) has an impact on the estimated future cash flows from the net investment that can be reliably estimated. The entire carrying amount of the investment is tested for impairment, in accordance with IAS 36, as a single asset, by comparing its recoverable amount (the higher of value in use and fair value less costs of disposal) with its carrying amount.

For the purposes of impairment testing, the recoverable amount of the investment in the joint venture, 8AM, has been determined based on value in use calculations using a discounted cash flow model that requires the use of assumptions. The pre-tax discount rate applied to the cash flow forecasts is derived from a weighted average cost of capital model, the inputs for which are externally available. The pre-tax discount rate used to calculate value is 15.9% (FY25: 16.9%). The model assesses sensitivity to operating margins, discount rates, and AUM growth rates. The results of the calculation indicate no impairment.

The Group has conducted an analysis of the sensitivity to changes in the key assumptions used to determine amount and timing of cash flows, including:

·	a reduction in growth rate;
·	a reduction in the terminal growth rate; and
·	an increase in the discount rate.

Reducing forecast growth rates for the five-year forecast period reduces headroom above the threshold for impairment by c.£380,000 for every 5% reduction in growth. Reducing the terminal growth rate to 0% would reduce headroom above the threshold for impairment by c.£1,300,000. Increasing the discount rate would reduce headroom above the threshold for impairment by c.£660,000 for every 1% increase in discount rate.

Business combinations

Critical judgement

Client relationships, brand, and software intangibles purchased through corporate transactions

When the Group purchases client relationships, brands, and software through transactions with other corporate entities, a judgement is made as to the identification of the intangible asset and whether the transaction should be accounted for as a business combination or as a separate purchase of intangible assets. In making this judgement, the Group assesses the assets, liabilities, operations, and processes that were the subject of the transaction against the definition of a business combination in IFRS 3. For a business combination, it is determined whether all elements of a business in IFRS 3 have been met; in particular, consideration is given to the inputs, processes, and outputs, and that there is, at least, an input and a substantive process that together significantly contribute to the ability to create output. It has also been considered whether the integrated set of activities is capable of being conducted and managed as a business by a market participant, and a judgement made as to whether the acquired process is substantive. If the acquisition is not deemed to be a business, it is treated as an acquisition of an asset or a group of assets.

There are no other judgements or assumptions made about the future, or about any other major sources of estimation uncertainty at the end of the reporting period, which have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

2.25 Other estimates

Estimation uncertainty

Share-based payments

Given the significance of share-based payments as a form of employee remuneration for the Group, management are providing additional information on the estimates involved in the accounting for share-based payments. This is not considered to be a key source of estimation uncertainty, given the materiality of the impact that changes in estimates have and as a result of the changes in estimates not impacting the carrying amount of an asset or liability in the balance sheet. The principal estimations relate to:

·	forfeitures (where awardees leave the Group as 'bad' leavers and, therefore, forfeit unvested awards); and
·	the satisfaction of performance obligations attached to certain awards.

These estimates are reviewed regularly and the charge to the Statement of Total Comprehensive Income is adjusted accordingly (at the end of the relevant scheme as a minimum). Based on the current forecasts of the Group, the charge for the year is based on 100% of the options in various scheme years vesting for the element relating to non-market-based performance conditions. A decrease of 10% in the vesting assumptions would reduce the charge in the next financial year by £461,000.

In considering the level of satisfaction of performance obligations, the Group's forecast has been reviewed and updated for the expected impact of the various market scenarios and management actions. This forecast has been used to estimate the relevant vesting assumptions for the Enterprise Management Incentive ("EMI") schemes in place.

2.26 Alternative performance measures

In reporting financial information, the Group presents alternative performance measures ("APMs") that are not defined or specified under the requirements of IFRSs. The Group believes that these APMs provide users with additional helpful information on the performance of the business. The APMs are consistent with how the business performance is planned and reported within the internal management reporting to the Board. Some of these measures are also used for the purpose of setting remuneration targets. The APMs used by the Group are set out in note 27, including explanations of how they are calculated and how they can be reconciled to a statutory measure where relevant. There is also further information on separately disclosed items in note 7.

3 | Capital management

The components of the Group's capital are detailed on the Consolidated Statement of Financial Position and as at the reporting date the Group had capital of £55,047,000 (FY25: £50,552,000). Capital generated from the business is both reinvested in the business to generate future growth and returned to shareholders, principally in the form of dividends.

The Group's objectives when managing capital are (i) to safeguard the Group's ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; (ii) to maintain a strong capital base and utilise it efficiently to support the development of its business; and (iii) to comply with the regulatory capital requirements set by the FCA. Capital adequacy and the use of regulatory capital are monitored by the Group's management and Board. There is one active regulated entity in the Group: Tatton Investment Management Limited, regulated by the FCA.

Regulatory capital is determined in accordance with the requirements of the FCA's Investment Firms Prudential Regime and the Capital Requirements Directive IV prescribed in the UK by the FCA. The Directive requires continual assessment of the Group's risks that is underpinned by the Group's Internal capital adequacy and risk assessment ("ICARA"). The ICARA considers the relevant current and future risks to the business and the capital that is considered necessary to support these risks.

The Group actively monitors its capital base to ensure that it maintains sufficient and appropriate capital resources to cover the relevant risks to the business and to meet consolidated and individual regulated entity regulations and liquidity requirements. The Group assesses the adequacy of its own funds on a consolidated and legal entity basis on a frequent basis. This includes continuous monitoring of 'K-factor' variables, which captures the variable nature of risk involved in the Group's business activities. A regulatory capital update is additionally provided to senior management on a monthly basis. In addition to this, the Group has implemented a number of 'Key risk indicators', which act as early warning signs, with the aim of notifying senior management if the Group's own funds misalign with the Group's risk appetite and internal thresholds.

The FCA requires the Group to hold more regulatory capital resources than the total capital resource requirement. The total capital requirement for the Group is the higher of the Group's own funds requirement (based on 25% of fixed overheads), its own harm requirement (based on the Group's requirement for harms from ongoing activities as calculated in the ICARA) and wind-down requirement (capital requirement should the firm wind down). The total capital requirement for the Group is £5.44m (unaudited), which is based on the Group's own funds requirement. As at 31 March 2026, the Group has regulatory capital resources of £20.4m (unaudited), which is significantly in excess of the Group's total capital requirement. During the period, the Group and its regulated subsidiary entities complied with all regulatory capital requirements.

4 | Segment reporting

Information reported to the Board of Directors as the CODM for the purposes of resource allocation and assessment of segmental performance is focused on the type of revenue. The principal types of revenue are discretionary fund management and the marketing and promotion of the funds run by the companies under Tatton Capital Limited ("Tatton") and the provision of compliance and support services to IFAs and mortgage advisers ("Paradigm").

The Group's reportable segments under IFRS 8 are, therefore, Tatton and Paradigm, with centrally incurred overhead costs applicable to the segments being allocated to the Tatton and Paradigm divisions on an appropriate pro rata basis. Unallocated central overhead costs of the Operating Group are classified as 'Unallocated' in the table below to provide a reconciliation of the segment information to the financial statements. Unallocated costs include general corporate expenses, head office salaries including cash and non-cash components of executive remuneration which bring benefit to all parts of the Group, and other administrative costs that are not directly attributable to the operating segments. These costs are managed at the corporate level and are not allocated to the segments for performance evaluation. All transactions between reporting segments are accounted for at arms length and are excluded within the consolidated accounts.

The principal activity of Tatton is that of discretionary fund management ("DFM") of investments on-platform and the provision of investment wrap services.

The principal activity of Paradigm is that of the provision of support services to IFAs and mortgage advisers. For management purposes, the Group uses the same measurement policies as are used in its financial statements. The Paradigm division includes the trading subsidiaries of Paradigm Partners Limited and Paradigm Mortgages Services LLP, which operate as one operating segment as they have the same economic characteristics, they are run and managed by the same management team, and the methods used to distribute the products to customers are the same. The information presented in this note is consistent with the presentation for internal reporting. Total assets and liabilities for each operating segment are not regularly provided to the CODM.

The following is an analysis of the Group's revenue and results by reportable segment:

YEAR ENDED 31 MARCH 2026	TATTON (£'000)	PARADIGM (£'000)	UNALLOCATED (£'000)	GROUP (£'000)
Revenue (note 5)	47,570	6,834	32	54,436
Share of post-tax loss from joint ventures (note 14)	(91)	-	-	(91)
Administrative expenses	(18,477)	(5,366)	(6,267)	(30,110)
Operating profit/(loss)	29,002	1,468	(6,235)	24,235
Share-based payments (note 25)	650	302	1,944	2,896
Amortisation of acquisition-related intangible assets (note 7)	621	36	-	657
Operating loss on non-controlling interest (note 7)	-	111	-	111
Fair value adjustment to acquisition-related contingent consideration (note 7)	-	-	42	42
Exceptional items (note 7)	544	-	-	544
Adjusted operating profit/(loss)1	30,817	1,917	(4,249)	28,485

YEAR ENDED 31 MARCH 2026	TATTON (£'000)	PARADIGM (£'000)	UNALLOCATED (£'000)	GROUP (£'000)
Statutory operating costs included the following:
Depreciation	66	25	218	309
Amortisation	824	72	2	898

YEAR ENDED 31 MARCH 2025	TATTON (£'000)	PARADIGM (£'000)	UNALLOCATED (£'000)	GROUP (£'000)
Revenue (note 5)	38,987	6,322	-	45,309
Share of post-tax loss from joint ventures (note 14)	(148)	-	-	(148)
Administrative expenses	(14,974)	(4,779)	(4,722)	(24,475)
Operating profit/(loss)	23,865	1,543	(4,722)	20,686
Share-based payments (note 25)	397	157	949	1,503
Amortisation of acquisition-related intangible assets (note 7)	621	36	-	657
Operating loss on non-controlling interest (note 7)	-	100	-	100
Fair value adjustment to acquisition-related contingent consideration (note 7)	-	-	-	-
Exceptional items (note 7)	-	-	-	-
Adjusted operating profit/(loss)1	24,883	1,836	(3,773)	22,946

YEAR ENDED 31 MARCH 2025	TATTON (£'000)	PARADIGM (£'000)	UNALLOCATED (£'000)	GROUP (£'000)
Statutory operating costs included the following:
Depreciation	64	58	169	291
Amortisation	782	53	2	837

All turnover arose in the United Kingdom. The key decision makers use the KPIs as detailed on pages 20 to 22 of the Annual Report.

1.      Alternative performance measures are detailed in note 27.

5 | Revenue

The disaggregation of consolidated revenue is as follows:

OPERATING SEGMENT	MAJOR PRODUCT/SERVICE LINE	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Tatton	Investment management fees	47,570	38,987
Paradigm	IFA consulting and support services income	2,335	2,342
Paradigm	Mortgage-related services income	3,851	3,200
Paradigm	Marketing income	648	780
Central	Support services income	32	-
		54,436	45,309

The disclosure of revenue by product line is consistent with the revenue information that is disclosed for each reportable segment under IFRS 8 'Operating segments' (see note 4). All the revenue relates to trading undertaken in the UK.

Investment management fees are recurring charges derived from the market value of retail customer assets, based on asset mix and portfolio size, and are, therefore, subject to market and economic risks. The rate charged is variable and is dependent on the product. Although most ongoing revenue is based on the value of underlying benefits, these are not considered to constitute variable income in which significant judgement or estimation is involved. The calculations are based on short timelines or point-in-time calculations that represent the end of a quantifiable period, in accordance with the contract. These are charged to and paid by the client on the same value, constituting the transaction price for the specified period. At any time during the period, a client may choose to remove their assets from a service and no further revenue is received.

All obligations to the customer are satisfied at the end of the period in which the service is provided for ongoing revenue, with payment being due immediately.

IFA consulting and support services income and marketing income are fixed based on the service provided. The rate charged for mortgage-related services income is variable and is dependent on the product. See note 2.5 for details of when revenue is recognised for the Paradigm product lines, including compliance consultancy services, mortgage-related services, and marketing services.

There are no elements of revenue that relate to contracts with an expected duration of over one year; therefore, the Group has applied the practical expedient for contracts of less than one year.

6 | Operating profit

The operating profit and the profit before taxation are stated after charging/(crediting):

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Amortisation of software (note 16)	241	180
Amortisation of acquisition-related intangibles (note 7)	657	657
Depreciation of property, plant and equipment (note 17)	109	96
Depreciation of right-of-use assets (note 17)	200	195
Exceptional items (note 7)	544	-
(Gain)/loss arising on financial assets designated as FVTPL (note 22)	(127)	(27)
Employee benefit expense (note 13)	17,888	14,868
Fair value adjustment to acquisition-related contingent consideration (note 7)	42	-
Services provided by the Group's auditor:
Audit of the statutory consolidated and Company financial statements of
Tatton Asset Management plc	136	149
Audit of subsidiaries	118	91
Other fees payable to the auditor:
Non-audit services	12	10

Total audit fees were £254,000 (FY25: £240,000). Total non-audit fees payable to the auditor were £12,000 (FY25: £10,000).

'Amortisation of software' in the table above excludes £37,000 (FY25: £36,000) of amortisation relating to the software acquired on acquisition of Fintegrate, which is included in the £657,000 (FY25: £657,000) of amortisation of acquisition-related intangibles.

7 | Separately disclosed items

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Share-based payment charges (note 25)	2,896	1,503
Amortisation of acquisition-related intangible assets	657	657
Operating loss relating to non-controlling interest	111	100
Fair value adjustment to acquisition-related contingent consideration	42	-
Exceptional items	544	-
Total separately disclosed items	4,250	2,260

Separately disclosed items that are shown separately on the face of the Statement of Total Comprehensive Income represent costs and income that do not reflect the Group's trading performance and may be considered material (individually or in aggregate if of a similar type) due to their size or frequency, and are adjusted to present Adjusted operating profit so as to ensure consistency between periods. The costs or income above are all included within Administrative expenses.

Although some of these items may recur from one period to the next, operating profit has been adjusted for these items to give better clarity regarding the underlying performance of the Group. The alternative performance measures ("APMs") are consistent with how the business performance is planned and reported within the internal management reporting to the Board. Some of these measures are also used for the purpose of setting remuneration targets.

Fair value adjustment to acquisition-related contingent consideration

During the year, the Group paid the final instalment of contingent consideration relating to a previous acquisition. At the point of settlement, the liability was remeasured to fair value, resulting in a fair value adjustment recognised in the income statement. This revaluation reflects the mechanics of the contingent consideration arrangement rather than the trading performance of the underlying business and represents a one‑off, final transaction associated with the acquisition.

Exceptional items

During the year, the Group changed its Authorised Corporate Director ("ACD") and incurred a one‑off termination fee in connection with the transition. This cost has been presented as a separately disclosed item, as the ACD transfer was a non‑recurring project and is not reflective of the Group's underlying trading performance.

Share-based payment charges

Share-based payments is a recurring item, although the value will change depending on the estimation of the satisfaction of performance obligations attached to certain awards. It is an adjustment to operating profit since it is a significant non-cash item. Adjusted operating profit represents largely cash-based earnings and more directly relates to the trading performance of the financial reporting period.

Operating loss due to non-controlling interest

The Group's operating profit includes £111,000 of losses relating to the non-controlling interest in Fintegrate Financial Solutions Limited (FY25: £100,000). This has been excluded from the Group's adjusted operating profit to reflect the adjusted operating profit attributable to the shareholders of the Company.

Amortisation of acquisition-related intangible assets

Payments made for the introduction of client relationships and brands that are deemed to be intangible assets are capitalised and amortised over their useful life, which has been assessed to be ten years. This includes £208,000 of amortisation of the intangibles recognised on the acquisition of 8AM, where the amortisation charge is included within the Share of profit/(loss) from joint ventures in the Consolidated Statement of Total Comprehensive Income (FY25: £208,000). This amortisation charge is recurring over the life of the intangible asset, although it is an adjustment to operating profit since it is a significant non-cash item. Adjusted operating profit represents largely cash-based earnings and more directly relates to the trading performance of the financial reporting period.

8 | Finance income

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Bank interest income	999	1,025
Preference share dividends	147	-
Other interest income	47	8
Total finance income	1,193	1,033

9 | Finance costs

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Bank interest payable	(1)	(10)
Other interest payable	(26)	-
Unwinding of the discount on contingent consideration	(23)	(47)
Interest expense on lease liabilities	(68)	(66)
Total finance costs	(118)	(123)

10 | Taxation charge

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Current tax expense
Current tax on profits for the period	6,610	5,792
Adjustment for over-provision in prior periods	(21)	(37)
	6,589	5,755
Deferred tax credit
Current year credit	(11)	(164)
Adjustment with respect to previous years	16	3
	5	(161)
Total tax expense	6,594	5,594

The deferred tax credit includes £52,000 relating to the release of the deferred tax liability on the investment in 8AM Global Limited, which is recognised within the Investment in joint ventures balance on the Consolidated Statement of Financial Position (FY25: £52,000).

The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK applied to profit for the year are as follows:

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Profit before taxation	25,310	21,596
Tax at UK corporation tax rate of 25%	6,328	5,399
Expenses not deductible for tax purposes	183	60
Income not taxable	(99)	(14)
Adjustments with respect to previous years	-	(45)
Capital allowances in excess of depreciation	59	5
Deferred tax asset not recognised	187	157
Share-based payments	(64)	32
Total tax expense	6,594	5,594

11 | Earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares during the year.

Number of shares

	31-MAR 2026	31-MAR 2025
Basic
Weighted average number of shares in issue1	61,657,085	61,623,021
Effect of own shares held by an EBT	(380,866)	(562,061)
	61,276,219	61,060,960
Diluted
Effect of weighted average number of options outstanding for the year	1,066,804	531,198
Weighted average number of shares (diluted)2	62,343,023	61,592,158
Fully diluted
Effect of full dilution of employee share options that are contingently issuable or have future attributable service costs	689,097	1,109,396
Adjusted diluted weighted average number of options and shares for the year3	63,032,120	62,701,554

1.      The weighted average number of shares in issue includes contingently issuable shares where performance obligations have been met and there will be little to no cash consideration, but the share options have yet to be exercised.

2.      The weighted average number of shares is diluted due to the effect of potentially dilutive contingent issuable shares from share option schemes.

3.      The dilutive shares used for this measure differ from that used for statutory dilutive earnings per share; the future value of service costs attributable to employee share options is ignored and contingently issuable shares for long-term incentive plan options are assumed to fully vest.

Own shares held by an EBT represents the Company's own shares purchased and held by the Employee Benefit Trust ("EBT"), shown at cost. In the year ended 31 March 2026, the EBT purchased 687,946 (FY25: 7,664) of the Company's own shares. The Company utilised 545,986 (FY25: 193,660) of the shares during the year to satisfy the exercise of employee share options. At March 2026, there remained 614,764 of the Company's own shares being held by the EBT (FY25: 472,804).

	31-Mar 2026 (£'000)	31-MAR 2025 (£'000)
Earnings attributable to ordinary shareholders
Basic and diluted profit for the period	18,840	16,141
Share-based payments - IFRS 2 option charges	2,896	1,503
Amortisation of acquisition-related intangible assets	657	657
Exceptional costs (note 7)	544	-
Fair value adjustment to contingent consideration (note 7)	42	-
Unwinding of discount on contingent consideration (note 9)	23	47
Tax impact of adjustments	(907)	(382)
Adjusted basic and diluted profits for the period and attributable earnings	22,095	17,966
Earnings per share (pence) - Basic	30.75p	26.43p
Earnings per share (pence) - Diluted	30.22p	26.21p
Adjusted earnings per share (pence) - Basic1	36.06p	29.42p
Adjusted earnings per share (pence) - Diluted1	35.44p	29.17p
Adjusted earnings per share (pence) - Fully Diluted1	35.05p	28.65p

1.      Alternative performance measures are detailed in note 27.

12 | Dividends

The Directors consider the Group's capital structure and dividend policy at least twice a year ahead of announcing results and do so in the context of its ability to continue as a going concern, to execute its strategy and to invest in opportunities to grow the business and enhance shareholder value. The Company's dividend policy is described in the Directors' Report on page 73. As at 31 March 2026, the Company's distributable reserves were £13,656,000 (FY25: £9,074,000).

During the year, Tatton Asset Management plc paid the final dividend related to the year ended 31 March 2025 of £5,707,000, representing a payment of 9.5p per share. In addition, the Company paid an interim dividend of £7,310,000 to its equity shareholders. This represents a payment of 12.0p per share.

During FY25 £4,740,000 was paid as the final dividend related to the year ended 31 March 2024, representing 8.0p per share. In addition, the Company paid an interim dividend of £5,700,000 to its equity shareholders, representing a payment of 9.5p per share.

The Directors are proposing a final dividend with respect to the financial year ended 31 March 2026 of 15.0p (FY25: 9.5p) per share, which will absorb £9,106,000 (FY25: £5,701,000) of shareholders' funds. It will be paid on 5 August 2026 to shareholders who are on the register of members on 26 June 2026.

13 | Staff costs

The staff costs, excluding Non-Executive Directors, were as follows:

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Wages, salaries and bonuses	12,651	11,304
Social security costs	1,825	1,616
Pension costs	516	445
Share-based payments	2,896	1,503
Total employee benefit expense	17,888	14,868

The average monthly number of employees (excluding Non-Executive Directors) during the year was as follows:

	31-MAR 2026	31-MAR 2025
Administration	117	110
Key management	3	3
Total	120	113

Key management compensation

The remuneration of the statutory Directors who are the key management of the Group is set out below in aggregate for each of the key categories specified in IAS 24 'Related Party Disclosures'.

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Short-term employee benefits	3,414	2,977
Post-employment benefits	152	150
Share-based payments including NI	1,664	522
Total	5,230	3,649

The table above shows the remuneration for both Executive Directors and Non-Executive Directors.

The Group incurred social security costs of £512,000 (FY25: £419,000) on the remuneration of the Directors and Non-Executive Directors. Retirement benefits are accruing to one Director (FY25: one) under a defined contribution pension scheme. Within the figures above is £10,000 of company contributions paid to a pension scheme in respect of this Director's qualifying services (FY25: £10,000).

Dividends totalling £2,342,000 (FY25: £1,883,000) were paid in the year with respect to ordinary shares held by the Company's Directors. The aggregate gains made by the Directors on the exercise of share options during the year were £5,591,100 (FY25: £304,600).

The remuneration of individual Directors is provided in the Remuneration Committee Report on pages 71 to 77. These disclosures form part of these financial statements.

The remuneration of the highest paid Director was:

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Total remuneration and benefits in kind	1,460	1,233

The highest paid Director exercised 348,036 share options in the period (FY25: nil). There were 158,298 share options granted to the highest paid Director in the year (FY25: 110,887). There was £nil (FY25: £nil) of money or net assets (other than share options) paid to or receivable by the highest paid Director under long-term incentive schemes in respect of qualifying services. The highest paid Director received £1,958,000 (FY25: £1,599,000) in dividends in the year with respect to ordinary shares held by the Director and connected parties. No contributions were made to a defined contribution scheme with respect to the highest paid Director in the period.

14 | Investments in joint ventures

	(£'000)
At 1 April 2025	5,256
Profit for the year after tax	117
Amortisation of intangible assets relating to joint ventures	(208)
Deferred tax credit on amortisation of intangible assets relating to joint ventures	52
Distributions of profit	(80)
At 31 March 2026	5,137

8AM belongs to the Tatton operating segment as disclosed within note 4.

NAME OF JOINT VENTURE	NATURE OF BUSINESS	PRINCIPAL PLACE OF BUSINESS	CLASS OF SHARE	PERCENTAGE OWNED BY THE GROUP
8AM Global Limited	Investment Management	United Kingdom	Ordinary Shares	50.0%
Niche Investment Management Limited	Investment Management	United Kingdom	Ordinary Shares	50.0%
Becketts Wealth Limited	Investment Management	United Kingdom	Ordinary Shares	50.0%

All of the above joint ventures are accounted for using the equity method in these consolidated financial statements, as set out in the Group's accounting policies in note 2.

Niche Investment Management Limited and Becketts Wealth Limited both have a reporting date of 31 March, in line with the Group. The Group's interest in all individually immaterial joint ventures accounted for using the equity method is £nil (FY25: £nil). The Group's share of profit for the year for these joint ventures is £nil (FY25: £nil).

8AM Global Limited has a reporting date of 30 June. The net asset position shown in the table below is as at 31 March, to align with the Group's own reporting.

Summarised financial information in respect of the Group's only material joint venture, 8AM, is set out below.

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Non-current assets	18	24
Current assets	816	735
Current liabilities	(166)	(161)
Total equity	668	598
Group's share of net assets	334	297
Goodwill and intangible assets	5,136	5,344
Deferred tax liability	(333)	(385)
Carrying value held by the Group	5,137	5,256

Current assets above include £506,000 of cash and cash equivalents (FY25: £502,000). There are no current or non-current financial liabilities excluding trade and other payables and provisions included in current liabilities and non-current liabilities.

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Revenue	1,764	1,473
Profit for the year	233	117
The above profit includes the following:
Depreciation and amortisation	9	5
Interest income	14	10
Income tax	84	43

There is no interest expense in the year (FY25 £nil).

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Joint venture's profit for the year	233	117
Group's share profit for the year before adjustments	117	59
Amortisation of customer relationship intangible assets	(208)	(207)
Group's share of loss for the year	(91)	(148)

15 | Goodwill

	GOODWILL (£'000)
Cost and carrying value at 1 April 2025 and 31 March 2026	9,796

The carrying value of goodwill includes £8.9m allocated to the Tatton operating segment and CGU. This is made up of £2.5m arising from the acquisition in 2014 of an interest in Tatton Oak Limited by Tatton Capital Limited, consisting of the future synergies and forecast profits of the Tatton Oak business, £2.0m arising from the acquisition in 2017 of an interest in Tatton Capital Group Limited, £1.4m of goodwill generated on the acquisition of Sinfonia, and £3.0m of goodwill generated on the acquisition of the Verbatim funds business.

The carrying value of goodwill also includes £0.4m allocated to the Paradigm operating segment and CGU relating to the acquisition of Paradigm Mortgage Services LLP.

The carrying value of goodwill also includes £0.5m of goodwill generated on the acquisition of 56.49% of Fintegrate Financial Solutions Limited in 2024. The ownership percentage relating to the investment into Fintegrate has changed following a number of share issues, with the Group owning 56.67% at the year end. The beneficial ownership of Fintegrate has also changed in the year, from Tatton Investment Management Ltd to Tatton Asset Management Plc.

Goodwill relating to 8AM Global Limited is shown within the Investments in joint ventures (see note 14).

None of the goodwill is expected to be deductible for income tax purposes.

Impairment loss and subsequent reversal

Goodwill is subject to an annual impairment review based on an assessment of the recoverable amount from future trading. Where, in the opinion of the Directors, the recoverable amount from future trading does not support the carrying value of the goodwill relating to a subsidiary company, then an impairment charge is made. Such an impairment is charged to the Statement of Total Comprehensive Income.

Impairment testing

For the purpose of impairment testing, goodwill is allocated to the Group's operating companies that represent the lowest level within the Group at which the goodwill is monitored for internal management accounts purposes. Goodwill acquired in a business combination is allocated, at acquisition, to the CGUs or group of units that are expected to benefit from that business combination. The Directors test goodwill annually for impairment, or more frequently if there are indicators that goodwill might be impaired. The Directors have reviewed the carrying value of goodwill at 31 March 2026 and do not consider it to be impaired.

Growth rates

The value in use is calculated from cash flow projections based on the Group's forecasts for the next five years, ending 31 March 2031. The Group's latest financial forecasts, which cover a five-year period, are reviewed by the Board. A terminal growth rate of 3.5% (FY25: 3.5%) for the Tatton CGU has been applied to year five cash flows. The terminal growth rate is prudent, given the historical growth seen by the Group, and does not exceed the long-term industry average growth rate. A terminal growth rate of 0% has been applied to the Paradigm Mortgage Services LLP CGU that reflects the outer year budget revenue.

Discount rates

The pre-tax discount rate applied to the cash flow forecasts is derived from a weighted average cost of capital model, the inputs for which are externally available. The pre-tax discount rate used to calculate value is 15.9% (FY25: 16.9%) and has been used for all CGUs.

Cash flow assumptions

The key assumptions used for the value in use calculations are those regarding discount rate, growth rates, and expected changes in margins. Forecast sales growth rates are based on past experience, which has been adjusted for the strategic direction and near-term investment priorities for each CGU. The Tatton CGU has used a growth rate of net flows of 14% in year 1, decreasing to 0% by year 5, which management believe is prudent given the size of the market and historical growth. The Paradigm Mortgage Services LLP CGU has an assumed 7% In year 1, decreasing to 3% growth by year 5.

From the assessment performed, no reasonably possible change in a key assumption would cause the recoverable amount of either the Tatton CGU or the Paradigm Mortgage Services LLP CGU to equal its carrying value.

16 | Intangible assets

	COMPUTER SOFTWARE (£'000)	CLIENT RELATIONSHIPS (£'000)	BRAND (£'000)	TOTAL (£'000)
Cost
Balance at 1 April 2024	1,849	4,034	98	5,981
Additions	437	-	-	437
Balance at 31 March 2025	2,286	4,034	98	6,418
Additions	415	-	-	415
Balance at 31 March 2026	2,701	4,034	98	6,833
Accumulated amortisation and impairment
Balance at 1 April 2024	(1,021)	(1,249)	(25)	(2,295)
Charge for the period	(216)	(404)	(10)	(630)
Balance at 31 March 2025	(1,237)	(1,653)	(35)	(2,925)
Charge for the period	(276)	(404)	(10)	(690)
Balance at 31 March 2026	(1,513)	(2,057)	(45)	(3,615)
Net book value
As at 1 April 2024	828	2,785	73	3,686
As at 31 March 2025	1,049	2,381	63	3,493
As at 31 March 2026	1,188	1,977	53	3,218

All amortisation charges are included within Administrative expenses in the Statement of Total Comprehensive Income.

The Client Relationships and Brand intangibles arose on acquisition of the Sinfonia and Verbatim funds. The Verbatim funds have a remaining useful expected life of 6 years, whilst the Sinfonia funds have a remaining useful expected life of 4 years.

Computer software relates to the internally generated software within Tatton Investment Management Limited and Fintegrate Financial Solutions Limited.

17 | Property, plant and equipment

	COMPUTER AND OFFICE EQUIPMENT (£'000)	FIXTURES AND FITTINGS (£'000)	RIGHT-OF-USE ASSETS - BUILDINGS AND MOTOR VEHICLES (£'000)	TOTAL (£'000)
Cost
Balance at 1 April 2024	347	498	924	1,769
Additions	58	10	339	407
Disposals	-	-	(302)	(302)
Balance at 31 March 2025	405	508	961	1,874
Additions	109	213	-	322
Disposals	(82)	-	-	(82)
Balance at 31 March 2026	432	721	961	2,114
Accumulated depreciation and impairment
Balance at 1 April 2024	(216)	(471)	(266)	(953)
Charge for the period	(86)	(10)	(195)	(291)
Disposals	-	-	302	302
Balance at 31 March 2025	(302)	(481)	(159)	(942)
Charge for the period	(81)	(28)	(200)	(309)
Disposals	80	-	-	80
Balance at 31 March 2026	(303)	(509)	(359)	(1,171)
Net book value
As at 1 April 2024	131	27	658	816
As at 31 March 2025	103	27	802	932
As at 31 March 2026	129	212	602	943

All depreciation charges are included within Administrative expenses in the Statement of Total Comprehensive Income.

The Group leases buildings, motor vehicles, and IT equipment. The Group has applied the practical expedient for short-term leases and so has not recognised IT equipment within ROU assets. The average lease term is five years. The maturity analysis for lease liabilities is shown in note 22. The future lease payments relating to lease liabilities are fixed.

Right-of-use assets

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Amounts recognised in profit and loss
Depreciation on right-of-use assets	(200)	(195)
Interest expense on lease liabilities	(68)	(66)
Expense relating to short-term leases	(78)	(67)
Total	(346)	(328)

At 31 March 2026, the Group is committed to £91,000 for short-term leases (FY25: £78,000).

The total cash outflow for all leases amounts to £363,000 (FY25: £282,000). The cash outflows for the principal portion of lease liabilities is shown as £285,000 (FY25: £216,000) and for the interest portion of lease liabilities of £68,000 (FY25: £66,000) is shown within financing activities in the Consolidated Statement of Cash Flows.

The cash outflows for the payments of short-term leases are shown within Operating activities in the Consolidated Statement of Cash Flows.

18 | Trade and other receivables

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Trade receivables	342	312
Accrued income	4,568	3,936
Prepayments	1,240	712
Amounts due from related parties	164	-
Other receivables	1,186	1,578
	7,500	6,538
Less non-current portion:
Amounts due from related parties	(147)	-
Total non-current trade and other receivables	(147)	-
Total current trade and other receivables	7,353	6,538

Trade and other receivables, excluding prepayments, are financial assets. The carrying value of these financial assets are considered a fair approximation of their fair value. Accrued income is made up of contract assets, which are balances due from customers that arise when the Group delivers the service. Payment for services is not due from the customer until the services are complete; therefore, a contract asset is recognised over the period in which the services are performed to represent the entity's right to consideration for the services transferred to date. This usually relates to providing one month of investment management service prior to receiving the cash from the customer in the following month.

The Group applies the IFRS 9 simplified approach to measuring expected credit losses ("ECLs") for trade receivables and accrued income at an amount equal to lifetime ECLs. In line with the Group's historical experience, and after consideration of current credit exposures, the Group does not expect to incur any credit losses and has not recognised any ECLs in the current year (FY25: £nil).

Within other receivables are two loans that Tatton granted in the previous financial year (FY25: £nil). The Group applies the IFRS 9 general approach for these receivables. The loans are secured and interest of 4% is being accrued, and is shown within note 8 as 'Other interest income'. The security equals the carrying amount of the loans and, as such, no ECL is recognised.

Non-current receivables is comprised of the accrued preference share dividends. Dividends accrue at 12% of the investment balance, and is shown within note 8 as Preference dividend income. No dividends will be paid for the first 24 months of the investment.

Trade receivable amounts are all held in sterling.

19 | Trade and other payables

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Trade payables	1,240	478
Amounts due to related parties	-	14
Accruals	8,025	7,163
Deferred income	109	122
Contingent consideration	-	420
Lease liabilities	631	848
Other payables	3,171	2,844
	13,176	11,889
Less non-current portion:
Lease liabilities	(409)	(615)
Other payables	(36)	(42)
Total non-current trade and other payables	(445)	(657)
Total current trade and other payables	12,731	11,232

Trade payables, amounts due to related parties, accruals, lease liabilities, contingent consideration, and other payables are considered financial liabilities. The Directors consider that the carrying amount of trade payables approximates to their fair value.

Within other payables, there is a loan of £26,000 that holds a fixed and floating charge over all present and future property and undertakings of Fintegrate Financial Solutions Limited (FY25: £33,000).

Trade payable amounts are all held in sterling.

20 | Deferred tax assets

	DEFERRED CAPITAL ALLOWANCES (£'000)	SHORT-TERM TIMING DIFFERENCES (£'000)	SHARE-BASED PAYMENTS (£'000)	ACQUISITION INTANGIBLES (£'000)	TOTAL (£'000)
Asset/(liability) at 1 April 2024	(134)	28	2,930	(253)	2,571
Income statement credit/(charge)	(20)	62	28	39	109
Equity credit	-	-	203	-	203
Asset/(liability) at 31 March 2025	(154)	90	3,161	(214)	2,883
Adjustment to opening balance	-	(15)	-	-	(15)
Income statement credit/(charge)	(19)	(29)	(23)	44	(27)
Equity charge	-	-	(1,246)	-	(1,246)
Asset/(liability) at 31 March 2026	(173)	46	1,892	(170)	1,595

A deferred tax asset of £319,000 with a temporary timing difference of £1,277,000 relating to a difference between the carrying value and the tax base of intangibles acquired in Tatton Capital Limited relating to Verbatim has not been recognised, as it is not expected that the temporary difference would reverse in the foreseeable future.

A deferred tax asset relating to share-based payments is recognised in respect of options that have vested but have not yet been exercised.

21 | Reconciliation of liabilities arising from financing activities

	1 APRIL 2024 (£'000)	FINANCING CASH FLOWS (£'000)	ADDITIONS (£'000)	NON-CASH CHANGES: INTEREST (£'000)	31 MARCH 2025 (£'000)	FINANCING CASH FLOWS (£'000)	ADDITIONS (£'000)	NON-CASH CHANGES: INTEREST (£'000)	31 MARCH 2026 (£'000)
Long-term borrowings	62	(23)	-	2	41	(22)	-	1	20
Short-term borrowings	126	-	-	8	134	(69)	-	6	71
Lease liabilities	659	(216)	339	66	848	(285)	-	68	631
Total	847	(239)	339	76	1,023	(376)	-	75	722

Long-term and short-term borrowings relate to interest-bearing borrowings added on the acquisition of Fintegrate Financial Solutions Limited. These are disclosed within Other payables within note 19.

22 | Financial instruments

The Group's treasury activities are designed to provide suitable, flexible funding arrangements to satisfy the Group's requirements. The Group uses financial instruments comprising borrowings, cash, and items such as trade receivables and payables that arise directly from its operations. The main risks arising from the Group's financial instruments are interest rate risks, credit risks, and liquidity risks. The Board reviews policies for managing each of these risks and they are summarised below. The Group finances its operations through a combination of cash resource and other borrowings.

Categories of financial instruments

The financial assets and liabilities of the Group are detailed below:

	AT 31 MARCH 2026				AT 31 MARCH 2025
	AMORTISED COST (£'000)	FINANCIAL LIABILITIES (£'000)	FVPL (£'000)	CARRYING VALUE (£'000)	AMORTISED COST (£'000)	FINANCIAL LIABILITIES (£'000)	FVPL (£'000)	CARRYING VALUE (£'000)
Non-current financial assets
Financial assets at FVTPL	-	-	155	155	-	-	-	-
Financial assets at amortised cost	4,510	-	-	4,510	-	-	-	-
Other receivables	147	-	-	147	-	-	-	-
Financial assets
Financial assets at FVTPL	-	-	1,260	1,260	-	-	1,133	1,133
Trade receivables	342	-	-	342	312	-	-	312
Accrued income	4,568	-	-	4,568	3,936	-	-	3,936
Other receivables	1,350	-	-	1,350	1,578	-	-	1,578
Cash and cash equivalents	33,862	-	-	33,862	32,119	-	-	32,119
	44,779	-	1,415	46,194	37,945	-	1,133	39,078
Financial liabilities
Trade and other payables	-	12,436	-	12,436	-	10,499	-	10,499
Contingent consideration	-	-	-	-	-	-	420	420
Lease liabilities	-	631	-	631	-	848	-	848
	-	13,067	-	13,067	-	11,347	420	11,767

Fair value estimation

IFRS 7 requires the disclosure of fair value measurements of financial instruments according to the level of the following fair value measurement hierarchy:

·  quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);

·  inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and

·  inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

All financial assets, except for financial investments, are held at amortised cost and are classified as level 1. The carrying amount of these financial assets at amortised cost approximate to their fair value.

Financial assets at fair value through profit or loss (level 1)

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Financial investments in regulated funds or model portfolios	1,260	1,133

The Group launched a new range of passive funds during the previous financial year and invested £1,000,000 in these funds. Financial investments in regulated funds are categorised as financial assets at fair value through profit or loss and are classified as level 1, and the fair value is determined directly by reference to published prices in an active market. These assets recognised a gain of £127,000 (FY25: £27,000) in the Consolidated Statement of Total Comprehensive Income. The impact of a 10% increase of decrease in value is not material to the Group.

Financial assets at fair value through profit or loss (level 3)

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Investment into ordinary share capital	155	-

Financial assets at amortised cost

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Investment into preference shares	4,510	-

The Group invested £4,700,000 into Carlos Topco Ltd during the financial year which is shown on the Consolidated Statement of Cash Flows.

Financial investments in the ordinary share capital are categorised as financial assets at fair value through profit or loss and are classified as level 3, and the fair value is determined directly by initial purchase price. In future years, the fair value of the asset will be determined by a bi-annual third party valuation. The initial purchase price has not been revalued due to the short period of time elapsed between purchase and the reporting date.

Financial assets in preference shares are categorised at amortised cost. Amortised cost is the carrying value of a financial asset or liability, measured using the effective interest method and adjusted for repayments and expected credit losses.

The Financial assets at fair value through profit or loss, along with the Group's other investments in regulated funds or model portfolios, are revalued regularly, with changes in fair value being recognised in the Consolidated Statement of Total Comprehensive Income.

All financial liabilities, except for contingent consideration, are categorised as financial liabilities measured at amortised cost and are also classified as level 1.

The only financial liabilities measured subsequently at fair value on level 3 fair value measurement represent contingent consideration relating to a business combination, and is measured subsequently at fair value on level 3 measurement. Contingent consideration is valued using a discounted cash flow method used to capture the present value arising from the contingent consideration.

During the year, a payment of £485,000 was made relating to the final contingent consideration due for acquisition of the Verbatim funds. The financial liability is now fully repaid at the year end.

Financial liabilities at fair value through profit or loss (level 3)

CONTINGENT CONSIDERATION	(£'000)
Balance at 1 April 2024	903
Contingent consideration paid	(530)
Unwinding of discount rate	47
Balance at 31 March 2025	420
Changes in fair value of contingent consideration	42
Contingent consideration paid	(485)
Unwinding of discount rate	23
Balance at 31 March 2026	-

The unwinding of the discount rate and the changes in fair value of contingent consideration have been recognised in the Consolidated Statement of Total Comprehensive Income.

Interest rate risk

The Group finances its operations through retained profits. The Group's cash and cash equivalents balance of £33,862,000 are the financial instruments subject to variable interest rate risk. The impact of a 1% increase or decrease in interest rate on the post-tax profit is not material to the Group.

Credit risk

Credit risk is the risk that a counterparty will cause a financial loss to the Group by failing to discharge its obligation to the Group. The financial instruments are considered to have a low credit risk, due to the mitigating procedures in place. The Group manages its exposure to this risk by applying Board-approved limits to the amount of credit exposure to any one counterparty, and employs strict minimum creditworthiness criteria as to the choice of counterparty, thereby ensuring that there are no significant concentrations. The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The maximum exposure to credit risk for receivables and other financial assets is represented by their carrying amount.

The Group's maximum exposure to credit risk is limited to the carrying amount of its financial assets recognised at the year end date.

The Group continuously monitors the defaults of customers and other counterparties, identified either individually or by the Group, and incorporates this information into its credit risk controls. The Group's policy is to deal only with credit-worthy counterparties.

The Group's management consider that all of the above financial assets that are not impaired or past due for each of the 31 March reporting dates under review are of good credit quality.

At 31 March, the Group had certain trade receivables that had not been settled by the contractual date but were not considered to be impaired. The amounts at 31 March, analysed by the length of time past due, are:

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
Not more than 3 months	218	256
More than 3 months but not more than 6 months	117	47
More than 6 months but not more than 1 year	7	5
More than 1 year	-	4
Total	342	312

Trade receivables consist of a large number of customers within the UK. Based on historical information about customer default rates, management consider the credit quality of trade receivables that are not past due or impaired to be good credit quality.

The Group has rebutted the presumption in paragraph 5.5.11 of IFRS 9 that credit risk increases significantly when contractual payments are more than 30 days past due, where the Group has reasonable and supportable information that demonstrates otherwise.

The credit risk for cash and cash equivalents is considered negligible, since the counterparties are reputable banks with high-quality external credit ratings.

Liquidity risk

Liquidity risk is the risk that companies within the Group will encounter difficulty in meeting the obligations associated with financial liabilities. To counter this risk, the Group operates with a high level of interest cover relative to its net asset value. In addition, it benefits from strong cash flow from its normal trading activities. The Group manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities, as well as forecast cash inflows and outflows due in day to day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below.

At 31 March 2026, the Group's non-derivative financial liabilities have contractual maturities (including interest payments where applicable) as summarised below:

	CURRENT		NON-CURRENT
AT 31 MARCH 2026	WITHIN 6 MONTHS (£'000)	6 TO 12 MONTHS (£'000)	1 TO 5 YEARS (£'000)	LATER THAN 5 YEARS
Trade and other payables	12,415	3	20	-
Lease liabilities	141	116	464	-
Contingent consideration	-	-	-	-
Total	12,556	119	484	-

Lease liabilities above totalling £721,000 are the undiscounted values of the total lease liability of £631,000 as shown in note 19.

This compares with the maturity of the Group's non-derivative financial liabilities in the previous reporting period, as follows:

	CURRENT		NON-CURRENT
AT 31 MARCH 2025	WITHIN 6 MONTHS (£'000)	6 TO 12 MONTHS (£'000)	1 TO 5 YEARS (£'000)	LATER THAN 5 YEARS
Trade and other payables	10,435	22	42	-
Lease liabilities	144	141	721	-
Contingent consideration	440	-	-	-
Total	11,019	163	763	-

The above amounts reflect the contractual undiscounted cash flows, which may differ from the carrying values of the liabilities at the reporting date.

Contingent consideration in 2025 totalling £440,000 is the undiscounted liability of the contingent consideration of £420,000 as shown in note 19. This liability was fully repaid during 2026.

Market risk

The Group has made investments in its own managed funds and portfolios and the value of these investments is subject to equity market risk, this being the risk that changes in equity prices will affect the Group's income or the value of its holdings of financial instruments. If equity prices had been 5% higher/lower, the impact on the Group's Statement of Comprehensive Income would be £63,000 higher/lower, due to changes in the fair value of financial assets at fair value through profit or loss.

23 | Share capital

	NUMBER OF SHARES
Authorised, called-up, and fully paid £0.20 ordinary shares
At 1 April 2024	60,511,400
Issue of share capital on exercise of employee share options	37,480
At 31 March 2025	60,548,880
Issue of share capital on exercise of employee share options	772,883
At 31 March 2026	61,321,763

Each share in Tatton Asset Management plc carries one vote and the right to a dividend.

24 | Own shares

The following movements in own shares occurred during the year:

	NUMBER OF SHARES	(£'000)
At 1 April 2024	658,800	3,278
Acquired in the year	7,664	50
Utilised on exercise of employee share options	(193,660)	(965)
At 31 March 2025	472,804	2,363
Acquired in the year	687,946	4,928
Utilised on exercise of employee share options	(545,986)	(2,904)
At 31 March 2026	614,764	4,387

Own shares represent the cost of the Company's own shares, either purchased in the market or issued by the Company, which are held by an EBT to satisfy future awards under the Group's share-based payment schemes (note 25).

25 | Share-based payments

During the year, a number of share-based payment schemes and share options schemes have been utilised by the Group, described under note 25.1 Current schemes.

25.1 Current schemes

(i) Tatton Asset Management plc EMI scheme ("TAM EMI scheme")

In July 2017, the Group launched an EMI share option scheme relating to shares in Tatton Asset Management plc, to enable senior management to participate in the equity of the Company. 3,022,733 options with a weighted average exercise price of £1.89 were granted, exercisable in July 2020. There have been 402,314 (FY25: 60,000) options exercised during the year from this scheme.

The scheme was extended in August 2018, August 2019, July 2020, July 2021, July 2022, July 2023 and July 2024 with 1,720,138, 193,000, 1,000,000, 279,858, 274,268, 204,523, 451,346 zero-cost options granted in each respective year. All option schemes are exercisable on the third anniversary of the grant date, meaning that the 2017, 2018, 2019, 2020, 2021 and 2022 schemes are currently exercisable. There have been 146,892 options exercised in the year relating to the 2018 scheme, 9,155 options exercised in the year relating to the 2019 scheme, 376,778 options exercised relating to the 2020 scheme, and 121,278 options exercised relating to the 2021 scheme. The 2019 scheme is now fully exercised, with 0 options outstanding.

The options granted in 2022 vested and became exercisable in July 2025. 23,129 of these options lapsed in the year. There have been 195,741 options exercised during the period from this scheme.

The weighted average share price at the date of exercise for all options exercised in the year was £6.92.

There were 5,000 options, 9,999 options, and 6,666 options relating to the 2023, 2024 (Grant 2) and 2025 schemes respectively that vested early and were subsequently exercised.

There were 561,510 zero-cost options granted in the current financial year.

A total of 2,066,400 options remain outstanding at 31 March 2026, 912,256 of which are currently exercisable. 20,459 options were forfeited in the period (FY25: 6,649). The weighted average contractual life for share options outstanding at the end of the period was 6.01 years (FY25: 5.29 years).

The vesting conditions for the scheme are detailed in the Remuneration Committee report on page 71. The weighted average fair value of the options granted during the year was £6.92. Within the Group accounts, the fair value at grant date is estimated using the appropriate models, including both the Black-Scholes and Monte Carlo modelling methodologies. Share price volatility has been estimated using the historical share price volatility of the Company. Key valuation assumptions and the costs recognised in the accounts during the period are noted in 25.2 and 25.3, respectively.

	NUMBER OF SHARE OPTIONS GRANTED	WEIGHTED AVERAGE PRICE (£)
Outstanding at 1 April 2024	2,569,630	0.64
Granted during the period	451,346	-
Exercised during the period	(192,026)	0.59
Forfeited during the period	(6,649)	-
Outstanding at 31 March 2025	2,822,301	0.54
Exercisable at 31 March 2025	1,941,486	0.79
Outstanding at 1 April 2025	2,822,301	0.54
Granted during the period	561,510	-
Exercised during the period	(1,273,823)	0.69
Lapsed during the period	(23,129)	-
Forfeited during the period	(20,459)	-
Outstanding at 31 March 2026	2,066,400	0.54
Exercisable at 31 March 2026	912,256	0.79

(ii) Tatton Asset Management plc Sharesave scheme ("TAM Sharesave scheme")

Since July 2020 the Group has annually launched all employee Sharesave schemes for options over shares in Tatton Asset Management plc, with the schemes in 2022, 2023, 2024, and 2025 being administered by Link Group. Employees are able to save between £10 and £500 per month over the three-year life of each scheme, at which point they each have the option to either acquire shares in the Company or receive the cash saved.

The 2022 TAM Sharesave scheme vested in July 2025 and 45,046 share options became exercisable. Over the life of the 2023 TAM Sharesave scheme, it is estimated that, based on current savings rates, 72,741 share options will be exercisable at an exercise price of £3.89. Over the life of the 2024 TAM Sharesave scheme, it is estimated that, based on current savings rates, 30,946 share options will be exercisable at an exercise price of £5.62. Over the life of the 2025 TAM Sharesave scheme, it is estimated that, based on current savings rates, 54,477 share options will be exercisable at an exercise price of £5.60.

45,046 options were exercised in the year at a weighted average share price at the date of exercise of £7.06. The weighted average contractual life for share options outstanding at the end of the period was 1.26 years (FY25 1.49 years).

The options granted as part of the scheme launched in 2025 have a weighted average fair value of £5.60. Within the accounts of the Group, the fair value at grant date is estimated using the Black-Scholes methodology for 100% of the options. Share price volatility has been estimated using the historical share price volatility of the Company. Key valuation assumptions and the costs recognised in the accounts during the period are noted in 25.2 and 25.3, respectively.

	NUMBER OF SHARE OPTIONS GRANTED	WEIGHTED AVERAGE PRICE (£)
Outstanding at 1 April 2024	69,977	3.53
Granted during the period	57,372	3.86
Forfeited during the period	(2,710)	3.75
Exercised during the period	(37,480)	3.60
Outstanding at 31 March 2025	87,159	3.71
Exercisable at 31 March 2025	-	-
Outstanding at 1 April 2025	87,159	3.71
Granted during the period	53,702	4.44
Forfeited during the period	(421)	3.89
Exercised during the period	(45,046)	3.26
Outstanding at 31 March 2026	95,394	4.33
Exercisable at 31 March 2026	-	-

(iii) Fintegrate Financial Solutions Limited Share Option Scheme ("Fintegrate option scheme")

In June 2023 2,250 share options were granted relating to shares in Fintegrate Financial Solutions Limited with an exercise price of £0.00001 and immediately vested. The fair value of the options granted was £26.07, based on comparable share purchase price at the date of vesting.

A further 13,912 options were granted in January 2025 with an exercise price of £0.00001. All options vested and were exercisable in January 2025. The fair value of the options granted was £3.39, based on comparable share prices at the date of vesting.

All options were exercised in February 2025, and therefore no options outstanding or exercisable at 31 March 2025 or 31 March 2026.

There were no vesting conditions associated with the options.

25.2 Valuation assumptions

Assumptions used in the option valuation models to determine the fair value of options at the date of grant were as follows:

	EMI SCHEME 2025	2024 GRANT 2	2024 GRANT 1	2023	2022	SHARESAVE SCHEME 2025	2024	2023	2022
Share price at grant (£)	6.92	6.64	7.04	4.74	4.03	7.34	7.14	4.91	4.25
Exercise price (£)	-	-	-	-	-	5.60	5.62	3.89	3.26
Expected volatility (%)	33.99	33.93	34.49	35.24	34.05	33.86	34.36	35.13	34.05
Expected life (years)	3.00	2.47	3.00	3.00	3.00	3.00	3.00	3.00	3.00
Risk free rate (%)	3.86	3.96	3.98	4.64	1.71	3.86	3.81	4.74	1.71
Expected dividend yield (%)	2.75	2.41	2.27	3.06	3.11	2.59	2.24	2.95	3.11

25.3 IFRS 2 share-based option costs

	31-MAR 2026 (£'000)	31-MAR 2025 (£'000)
TAM EMI scheme	2,796	1,335
TAM Sharesave scheme	100	62
Fintegrate option scheme	-	106
Total	2,896	1,503

The Consolidated Statement of Cash Flows shows an adjustment to Net cash from operating activities relating to share-based payments of £1,871,000 (FY25: £1,413,000). This is a charge in the year of £2,896,000 (FY25: £1,503,000) adjusted for cash paid relating to National Insurance contributions on the exercise of share options of £1,025,000 (FY25: £90,000). Of the charge of £2,896,000, £2,455,000 is recognised through equity, with the remaining £441,000 relating to the cost of National Insurance contributions that are not accounted for through equity. Within equity, there is also an additional £923,000 (FY25: £129,000) relating to the exercise price received on the exercise of share options, which were satisfied through shares held in the EBT rather than through the issue of new shares.

26 | Related party transactions

Ultimate controlling party

The Directors consider there to be no ultimate controlling party.

Parent Company

The parent company of the Group is considered to be Tatton Asset Management Plc.

Relationships

Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

The Group has trading relationships with the following entities in which Paul Hogarth, a Director, has a beneficial interest:

ENTITY	NATURE OF TRANSACTIONS
Suffolk Life Pensions Limited	The Group pays lease rental payments on an office building held in a pension fund by Paul Hogarth.
Henbury Hall	The Group pays events and marketing costs for functions held at an estate owned by Paul Hogarth.

The Group has trading relationships with the following entities in which Paul Hogarth and Paul Edwards
are non-executive directors:

ENTITY	NATURE OF TRANSACTIONS
Carlos Topco Limited	The Group receives dividend income on preference shares investment.
Absolute Financial Group Limited	The Group receives income related to sub-lease of office premises, and shared service income.
Absolute Financial Management Limited	The Group receives income related to consultancy.

Related party balances

	TERMS AND CONDITIONS	2026 VALUE OF COST (£'000	BALANCE PAYABLE (£'000)	2025 VALUE OF COST (£'000)	BALANCE PAYABLE (£'000)
Suffolk Life Pensions Limited	Payable in advance	(75)	-	(61)	(15)
Henbury Hall	Payable in advance	(20)	-	-	-

		2026 VALUE OF INCOME (£'000)	BALANCE RECEIVABLE (£'000)	2025 VALUE OF INCOME (£'000)	BALANCE RECEIVABLE (£'000)
Carlos Topco Limited	Receivable	147	147	-	-
Absolute Financial Group Limited	Receivable on demand	53	17	-	-
Absolute Financial Management Limited	Receivable on demand	17	-	-	-

Balances with related parties are non-interest bearing.

Key management personnel remuneration

Key management includes Executive and Non-Executive Directors. The compensation paid or payable to key management personnel is as disclosed in note 13.

27 | Alternative performance measures

The Group has identified and defined certain measures that it uses to understand and manage its performance. The measures are not defined under IFRS and are not considered to be a substitute for or superior to IFRS measures, but management believe that these Alternative Performance Measures ("APMs") provide stakeholders with additional helpful information and enable an alternative comparison of performance over time. The APMs should not be viewed in isolation, but as supplementary information. APMs may not be comparable with similarly titled measures presented by other companies.

The APMs are used by the Board and management to analyse the business and financial performance, track the Group's progress, and help develop long-term strategic plans. Some APMs, where noted in the table, are used as key management incentive metrics. The APMs provide additional information to investors and other external shareholders, to provide additional understanding of the Group's results of operations as supplemental measures of performance.

APM	CLOSEST EQUIVALENT MEASURE	RECONCILING ITEMS TO THEIR STATUTORY MEASURE	DEFINITION AND PURPOSE
Adjusted operating profit	Operating profit	Items in note (a) below	The reconciliation between Operating profit and adjusted operating profit can be seen on the face of the Consolidated Statement of Total Comprehensive Income. See note 7 for the value of the adjusting items. This is a key management incentive metric.
Adjusted operating profit margin	Operating profit margin	Items in note (a) below	Adjusted operating profit divided by revenue to report the margin delivered. Progression in the adjusted operating margin is an indicator of the Group's operating efficiency. See note 7 for the value of the adjusting items.
Cash generated from operations before exceptional items	Cash generated from operations	Cash flows from exceptional items	Cash generated from operations is adjusted to exclude cash flows from exceptional items. The reconciliation between cash generated from operations and cash generated from operations before exceptional items can be seen on the Statement of Cash Flows, when relevant. This is a measure of the cash generation and working capital efficiency of the Group's operations and is a key management performance measure.
Adjusted earnings per share - Basic	Earnings per share - Basic	Items in note (b) below	Profit after tax attributable to shareholders of the Company is adjusted to exclude separately disclosed items, as detailed in note 11, and is divided by the same denominator as Basic EPS; this being the weighted average number of ordinary shares in issue. Adjusted EPS - Basic is presented to reflect the impact of the separately disclosed items included in adjusted operating profit.
Adjusted earnings per share - Fully Diluted	Earnings per share - Diluted	Items in note (b) below	Profit after tax is adjusted to exclude separately disclosed items, as detailed in note 11, and is divided by the total number of dilutive shares, assuming that all contingently issuable shares will fully vest. The reconciliation and calculation of Adjusted EPS - Diluted is shown in note 11. Adjusted EPS - Fully Diluted is presented to reflect the impact of the separately disclosed items included in Adjusted operating profit and to include all shares that are contingently issuable, assuming that share options fully vest. This is a key management incentive metric.
Tatton - assets under management ("AUM") and net inflows	None	Not applicable	AUM is representative of the customer assets and is a measure of the value of the customer base. Movements in this base are an indication of performance in the year and growth of the business to generate revenue going forward. Net inflows measure the net of inflows and outflows of customer assets in the year. Net inflows are a key management incentive metric.
Tatton - assets under influence ("AUI")	None	Not applicable	AUI is representative of the customer assets that are not directly managed by Tatton but over which we hold influence, due to our shareholding in the company in which they are managed, and is a measure of the value of the customer base. Movements in this base are an indication of our participation in the joint venture and its growth, in order to generate Tatton's share of profits going forward.
Underlying organic net inflows	None	Not applicable	Underlying organic net inflows is the AUM growth Tatton has created, removing any external markets driven growth. We have excluded Perspective flows for the current year, as this reflected the ending of a partnership, and is not related to operational performance.
Tatton firms	None	Not applicable	Alternative growth measure to revenue; provides an operational view of growth in the Tatton division.
Paradigm - Consulting members, Mortgages lending and member firms	None	Not applicable	Alternative growth measure to revenue; provides an operational view of growth in the Paradigm division, which is supported by two main service lines: Consulting and Mortgages.
Return on capital employed ("ROCE")	None	Not applicable	ROCE is calculated as the annual adjusted operating profit for the last twelve months, as shown on the Consolidated Statement of Total Comprehensive Income, expressed as a percentage of the average total assets less current liabilities. The denominator for 2026 is £53.3m (FY25: £47.8m). ROCE measures how effectively we have deployed our resources and how efficiently we apply our capital.

(a)     Reconciling items include: Exceptional items, share-based payments, changes in the fair value of contingent consideration, amortisation of acquisition-related intangibles, and operating loss relating to non-controlling interest.

(b)    Reconciling items include: Exceptional items, share-based payments, changes in the fair value of contingent consideration, amortisation of acquisition-related items, unwinding of discount on contingent consideration, and the tax thereon.

28 | Post balance sheet events

There have been no post balance sheet events.

29 | Capital commitments

On 12 August 2025, Tatton Asset Management plc entered into a cash commitment to invest up to £10,000,000 in Carlos Topco Limited, which is available to be drawn down over a five-year period. At 31 March 2026, £4,700,000 has been invested, with a further £5,300,000 available to be drawn.

The Board has reviewed the Group's cash position, regulatory liquidity and capital requirements, and is satisfied that the Group will retain its strong cash position and hold regulatory capital resources and liquidity in excess of its requirements. This commitment is not shown in the Consolidated Statement of Financial Position at the period end.

30 | Contingent liabilities

At 31 March 2026, the Directors confirmed there were no contingent liabilities (FY25: none).

 

END