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viewTavistock Investments PLC

Tavistock Investments has a plan to improve profitability

Snapshot

"We aim to continue to improve the group's profitability and manage a regular and growing dividend stream for the benefit of our shareholders," said CEO Brian Raven

Tavistock

Quick facts: Tavistock Investments PLC

Price: 2.17 GBX

AIM:TAVI
Market: AIM
Market Cap: £12.48 m
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  • A UK fund manager and wealth advisor

  • Underlying full-year earnings surged 101%

  • Funds under management up 5% 

  • Maiden interim dividend declared with plans to increase the payout

 

What Tavistock Investments does:

Tavistock Investments is a UK asset management and financial advisory services business. The company has 200 advisers that look after 50,000 clients and more than £3.5bn of investments.

The group provides compliance, administration and accounting services to independent financial advisers as well as wealth management, advice and financial planning to individuals.

The company recently announced plans to improve profitability by selectively purchasing client books from retiring advisors, investing in initiatives to increase the inflows of funds under management (FUM) and reducing net debt through scheduled repayments of its loan facility with NatWest.

 

Inflexion points:

  • Trading has remained in line with market expectations despite “challenging” market conditions caused by Brexit anxiety and international trade disputes.
  • Underlying earnings (EBITDA) were £1.48mln for the year ended 31 March, up 101% on the prior year, and funds under management increased 5% to £945mln.
  • Following a strong full-year performance and a 775% increase in cash generated from operations to £1.2mln, the company declared a maiden interim dividend of 0.01p per share. The group said it hopes to increase the level of dividend payment in future years
  • Tavistock has two protected products, the ACUMEN Capital Protection Portfolio (ACPP) and ACUMEN Income Protection Portfolio (AIPP), which attracted over £100mln of inflows by the end of the year.
  • Earlier this year, it launched i-stock, a smartphone app that provides retail investors with access to its wealth funds through a free ISA or general investment account, with a self-invested pension plan due to be made available “in due course”.

What the CEO says, Brian Raven:

“The payment of a maiden interim dividend marks the achievement of a long-held strategic objective and demonstrates the strength of our business model," Raven said in May with the last results.

"Our protected products have been universally well received and we will continue to focus on making them as widely available as possible.

"We intend to disrupt the D2C space with our free of charge app.

"We aim to continue to improve the group's profitability and manage a regular and growing dividend stream for the benefit of our shareholders."

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Tavistock Investments 'demonstrating rapid growth' as it announces maiden...

Tavistock Investments PLC (LON:TAVI) CEO Brian Raven tells Proactive London's Andrew Scott the year to March 2019 was a very successful period for them in terms of continued growth. ''EBITDA's doubled which is part of the story we've been explaining for the past several years - as funds...

on 15/5/19

2 min read