Tavistock Investments PLC (AIM:TAVI) announced a 58% jump in profits in its latest half-year and said it will start a share buy-back programme with the proceeds from the sale of its wealth management arm.
Titan bought the Tavistock Wealth arm last month for £40mln in a deal that includes a ten-year strategic partnership between the two companies.
Tavistock said it had received the first £20mln of the consideration, which has cleared its debts and it is now looking at buybacks of up to 10% of its shares.
An interim dividend of 0.05p was also announced today, a five-fold increase on the maiden interim dividend paid last year.
Brian Raven, group chief executive, said: "Our future prospects have been transformed by continued strong financial performance and entry into the strategic partnership with Titan Wealth.
“The sale of Tavistock Wealth to Titan for up to £40mln in cash plus a ten-year earn-out vindicates our belief that the value we have built within the business remains largely unrecognised.”
In the year to end March 2021, Tavistock increased underlying earnings by 58% to £2.9mln, while operating profits were £1.2mln (loss: £5.47mln).
Funds under management in the investment management arm rose by 15% to £1.15bn, a seventh consecutive yearly increase.