Tavistock Investments PLC (LON:TAVI) said it is in “strong position to accelerate growth” after it told investors it expects to report underlying earnings (EBITDA) “significantly ahead” of last year for the 12 months ended March 31.
Revenues should be “broadly in line” with the year earlier, while “significant” costs have been taken from the business, it added.
In a wide-ranging update, Tavistock said its growth strategy remained intact. It recently entered into its tenth client acquisition agreement, using its own cash to purchase books of business from advisers who are retiring from the industry.
These acquisitions tend to generate recurring income ranging from £25,000 a year at the low end, to almost £600,000 at the high end.
“Ownership of client relationships enables the company to achieve higher margins from the provision of financial advice,” the company explained.
In December, the Tavistock Platform was launched, providing a new low-cost service to the company's advisory and investment clients.
“Transitioning clients to the Tavistock Platform will enable the company to service the entire value chain for retail clients,” the firm said.
“We believe that it will also increase investment in Tavistock's funds and model portfolios.”
Finally, following a change of chief investment officer in July, and the introduction of a revised investment strategy, many funds have performed in the top quartile of their respective sectors.
Chief executive Brian Raven said the period under review had been one of “so many positive developments” in the face of some extreme challenges.
“I would like to thank our staff for their dedication and commitment, and I am extremely proud of what we have accomplished together,” he added.
“The company is now in a strong position to accelerate its growth over the next few years and by so doing, deliver increased value to our shareholders and an enhanced service to our clients."