The launch of three new funds under its Acumen brand (to make seven) helped the amount under management rise by 130% to £745mln.
Revenues in the discretionary business, which fully manages investors’ money, was £1.52mln in the first half compared to £1.66mln for the whole of the previous year.
This half year to September, interim revenues jumped by 40% to £12.4mln with underlying profits [EBITDA] of £297,000 compared to a loss of £42,000.
On a statutory basis, Tavistock broke even after a comparable loss of £795,000.
Oliver Cooke, Tavistock’s executive chairman, said the half-year progress had been extremely good and prospects were excellent.
Most of the growth in funds under management (FUM) had been organic, he said, and this was boosting Tavistock’s earnings.
“The group's investment management business has a relatively fixed overhead base and, as a consequence, the revenue resulting from increased levels of FUM has a direct impact on group profitability.
“The company enjoys a high retention rate of FUM. Similarly, it enjoys a high level of recurring income within its advisory businesses.
“This combination gives the business a very high degree of revenue visibility."
“Given this visibility, and because the Group is making rapid progress, it is useful to illustrate the potential profitability of the business model.
“For example, if the FUM managed by Tavistock Wealth were to increase to £1.5bn and the continuing Group's underlying cost base were to remain unchanged, the EBITDA produced on an annualised basis would be over £5mln.”
Shares rose 13% to 3.38p.
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