Brian Raven, chief executive officer of financial services group Tavistock Investments PLC (LON:TAVI), tells Proactive Investors that not only has the group moved into the black, but all parts of the business are now operating at a profit.
“Three of them [the businesses] were profitable when we acquired them; the other two – the investment management business and the largest transaction that we’ve made, which was that of the financial group – were loss-making, so it’s a big step,” Raven said.
The group as a whole is not only profitable, but cash generative, which is always useful for an investment group.
The group remains extremely picky, however, when it comes to deals, with Raven revealing the group has looked at hundreds (possibly thousands) of potential acquisitions and pulled the trigger on only five.
The key is finding businesses that are run by people that share Tavistock’s values and business philosophy and who want to stay on for at least a couple of years and help build Tavistock, rather than taking the money and running. For now, though, acquiring businesses is likely to take a back seat.