Trading Update

RNS Number : 5003X
Tavistock Investments PLC
10 May 2016
 

TAVISTOCK INVESTMENTS PLC

(the "Group" or "Tavistock")

 

TRADING UPDATE

Tavistock is delighted to provide an update on the considerable progress made during the financial year ended 31 March 2016 and post-period to 6 May 2016. The full year results, subject to audit, are expected to be ahead of market expectations.

Group highlights:

·     Tavistock now operates an integrated, national business offering both financial advisory and investment management services, with 328 advisers supporting more than 70,000 clients around the UK

·     Each of the Group's operating businesses is now trading profitably

·     AUI (assets under influence) are estimated to be £4 billion and AUM (assets under management) on either a discretionary or advisory basis exceed £430 million

·     As approximately 75% of the Group's net revenues are represented by recurring income, future performance has become significantly more predictable

Tavistock's business model is also gaining increasing commercial traction.  In the first half of the financial year ended 31 March 2016, the Group's ongoing businesses reported a small EBITDA loss (excluding share based payment charges and one-off acquisition costs). By contrast, in the second half of the year, the Group's ongoing businesses are expected to report a profit in excess of the first half loss.  Consequently, the Group anticipates reporting an EBITDA profit (excluding share based payment charges and one-off acquisition costs) for the year as a whole, which is ahead of market expectations.

Tavistock's recent acquisition of Abacus will significantly enhance the Group's performance in the current financial year and the Board remains committed to the introduction of a dividend stream for the benefit of shareholders within the next 12 months. To ensure the availability of sufficient distributable reserves to pay dividends, the Board plans to begin the Court process of offsetting accumulated losses (principally attributable to the historic discontinued SocialGo business) against the credit balance on the share premium account.

Brian Raven, Group Chief Executive, commented:

"We have made remarkable progress in the two short years since completing our initial transactions, and this would not have been possible without our exceptional management and staff.  With more than £9 million of net assets, including cash resources of over £3 million, we are well positioned to capitalise on the opportunities available to us. We look forward to the continuation of our rapid progress in the year ahead."

For further information:

 

Tavistock Investments plc

Oliver Cooke, Executive Chairman

Brian Raven, Group Chief Executive

Tel: 01753 867000

 

 

Northland Capital Partners Limited

William Vandyk

Matthew Johnson

Tel: 020 3861 6625

 

 

WH Ireland Limited

Tim Feather

Liam Gribben

Tel: 0113 394 6600

 

 

Templars Communications Limited

Kitty Parry

Kate Boothman Meier

 

Tel: 020 3642 3140

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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