Financial services group Tavistock Investments PLC (LON:TAVI) saw funds under management (FUM) rise for the 16th quarter in a row in the July-September period.
Total FUM had risen to £941mln by the end of September, up £196mln (26%) on a year earlier.
Tavistock Wealth's current average gross revenue is 0.51% of FUM value per annum and during the six-month period, it achieved revenue of £2.4 million, which the group noted compared favourably with revenue of £3.6 million for the full year to 31 March 2018.
The group’s revenue in the six months to the end of September rose 13% to £14.03mln from £12.36mln the year before, while underlying earnings before interest, tax, depreciation and amortisation shot up 74% to £516,000 from £297,000.
Depreciation and amortisation rose 4% to £503,000 from £484,000, contributing to a loss before tax of £320,000, versus a loss in the corresponding six month period of 2017 of £147,000.
The group's cost base grew during the reporting period as the business continued to expand, and investment was made in new initiatives designed to bring in new business; however, measures have now been taken to remove costs where appropriate and Tavistock anticipates completing a cost reduction exercise saving over £500,000 a year, by December 2018.
In May, Tavistock Wealth launched two new protected funds, which enabled it to enter into partnerships with large-scale organisations.
The first such partnership is with the Law Society, resulting in the society endorsing Tavistock Law as the preferred provider of investment advice to Law Society’s members in the fields of trusts and court of protection awards.
"We are delighted with the continued organic growth of both our investment management and financial advisory businesses, despite this period of economic uncertainty,” said Brian Raven, the chief executive of the group.
“Our outlook for growth remains positive, particularly given the early success of the new protected products and the endorsement by the Law Society. We believe that these results pave the way for greater momentum throughout 2019, with a predicted continuation of growth for the Tavistock Investments Group," he added.
On the strength of the group’s continued solid performance and the bright outlook, the board currently plans to recommend the payment of a maiden dividend when its full-year results are announced.