Tavistock Investments PLC (AIM:TAVI) has reported a jump in organic revenue at its financial advisory business and said it is engaged in discussions with several well-qualified acquisition targets.
Revenues in the financial advisory business jumped by 16% year-on-year to £17mln in the six months to September 30, 2022, and were 59% higher than in full-year 2020, while the contribution the business made to adjusted EBITDA increased by 56% over the same period last year to £1.4mln.
Tavistock remains in a period of transition with the board's focus being on replacing the adjusted EBITDA contribution previously made by the company's investment management business, Tavistock Wealth Limited which was sold to Titan Wealth Holdings Limited in August 2021.
The company said this will be achieved through an acquisition strategy noting that it is currently engaged in discussions with several well-qualified acquisition targets, which it is well-positioned to pursue.
Tavistock continued its strategic share buyback programme in the period, purchasing 3.3mln shares at 7p per share in its first half. Looking forward, the company said it is focused on maximising shareholder value, either by growing its dividend stream or completing further buybacks, building a much larger and more profitable business.
"We are continuing to achieve strong organic growth and are well placed to pursue a targeted acquisition strategy,” Tavistock chief executive Brian Raven said in the interim results statement.
"The Group's cash resources have recently been bolstered by receipt of the first of three deferred consideration payments from Titan Wealth and an offer from the Bank of Ireland for up to £20mln to assist with executing our acquisition strategy," he added.
Looking at other financials, the group posted overall first-half adjusted EBITDA of £147,000, a 155% improvement on the £268,000 adjusted EBITDA loss at the same stage in 2021.