Banking

Tavistock Investments returns to profit following reorganisation

Last year the business undertook a reorganisation project, which cost £1.2m, to reduce its overhead costs by £750,000 in a full year.

The project was funded, in part, by a decision to furlough almost one-in-four employees, lower rents negotiated with landlords and a payment holiday on £1.4m in outstanding debt.

Within its investment business, Tavistock reported funds under management increased for a seventh consecutive year, up 15% year-on-year to £1.2bn.

The sale of Tavistock Wealth, Tavistock’s multi-asset manager, to Titan Wealth completed last week (31 August) and will be renamed Titan Asset Management.

Meanwhile, the group’s advisory business saw a substantial 508% improvement in adjusted EBITDA performance, from £375,000 in the prior year to £2.28m in the year under review.

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 £40m in cash plus a ten-year earn-out vindicates our belief that the value we have built within the business remains largely unrecognised.

Tavistock chief: Sale of multi-asset business means ‘acquisitions at acclerated rate’

“The transaction proceeds equip us to accelerate the growth of the business, developing a much larger and more profitable distribution and wealth management group, to deliver enhanced value to shareholders.”

During the Covid-19 crisis, in order to protect the business each member of the board waived 20% of their salaries during the first quarter of the year and staff were invited to consider making a similar “voluntary sacrifice”.  The company said it repaid staff in full in February 2021.

The board said that it remains focused on an “accelerated acquisition programme” to deliver a larger group and continued operational improvements.

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