Tavistock Investments PLC (LON:TAVI) said trading has remained in line with market expectations despite “challenging” market conditions caused by Brexit anxiety and international trade disputes.
In a trading update, the investment and wealth management group said that in future it would be in its best interests 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.
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As a result of these new initiatives, Tavistock said its regulatory capital requirements had increased, and to bolster its position it had agreed a new £630,000 loan facility with two of its directors Oliver Cooke and Brian Raven, and its chief investment officer Christopher Peel, each of whom would provide £210,000.
The company also said that going forward it was “Impossible to determine” how much more challenging trading conditions would become over the short term and how this could impact its future trading before the market stabilised.
In early trading on Friday, Tavistock shares were 2.3% higher at 2.2p.