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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Tavistock Investments Plc | LSE:TAVI | London | Ordinary Share | GB00BLNMLS43 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 4.15 | 3.80 | 4.50 | 4.15 | 4.15 | 4.15 | 45,554 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Finance Services | 33.95M | -1.4M | -0.0025 | -16.60 | 23.26M |
From May 2022 to May 2024
TIDMTAVI
RNS Number : 2228K
Tavistock Investments PLC
20 December 2022
Tavistock Investments Plc
("Tavistock" or the "Company")
Interim Accounts
20 December 2022
Tavistock announces its unaudited interim results for the six months ended 30 September 2022.
Ongoing advisory business highlights:
-- Revenue up 16% compared to same period last year and up 59% compared to same period in 2020 (H1 2022: GBP17 million, H1 2021: GBP14.7 million, H1 2020: GBP10.7 million).
-- Contribution to adjusted EBITDA up 56% to GBP1.4 million (H1 2021: GBP0.9 million).
-- Continuation of the strategic share buyback programme with 3,300,000 shares purchased during the period.
-- An interim dividend of 0.07p per share was paid in July 2022 (40% higher than the previous dividend in October 2021).
Brian Raven , Tavistock's Chief Executive, said: "We are continuing to achieve strong organic growth and are well placed to pursue a targeted acquisition strategy."
"The Group's cash resources have recently been bolstered by receipt of the first of three deferred consideration payments from Titan Wealth and an offer from the Bank of Ireland for up to GBP20 million to assist with executing our acquisition strategy."
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For further information
Tavistock Investments Plc Tel: 01753 867000
Oliver Cooke
Brian Raven
Allenby Capital Limited (Nominated adviser Tel: 020 3328
and broker) 5656
Corporate Finance: Nick Naylor, Nick Athanas,
Freddie Wooding
Sales and Corporate Broking: Tony Quirke
Powerscourt Tel: 07711 380
007
Gilly Lock 020 7250 1446
Roxane Girard
TAVISTOCK INVESTMENTS PLC
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHSED 30 SEPTEMBER 2022
I am pleased to advise that the strong growth within the Company's financial advisory business, reported for the full year to 31 March 2022, has continued during the first half of the current financial year.
This area generated increased gross revenues of GBP17 million during the period, up 16% on the same period last year (30 September 2021: GBP14.7 million).
The contribution made to the Company's adjusted EBITDA also increased by 56% over the same period last year to GBP1.4 million (30 September 2021: GBP0.9 million).
Despite this creditable level of organic growth, this remains a period of transition for the Company with the Board's focus being on replacing the adjusted EBITDA contribution previously made by the Company's investment management business, Tavistock Wealth Limited ("TWL"), prior to its sale to Titan Wealth Holdings Limited ("Titan") in August 2021. This will be achieved through an acquisition strategy.
Investigating acquisition opportunities and exploring different financing options, as well as the wider development of the business, is a time-consuming process involving occasional dead ends at the due diligence stage. However, the Company is currently engaged in discussions with several well qualified acquisition targets, which it is well positioned to pursue. The Company's cash resources have been bolstered by the recent receipt of the first of three deferred consideration payments from Titan and further strengthened by an offer from the Bank of Ireland to provide a facility of up to GBP20 million to assist with its acquisition strategy.
The Board is also focused on withdrawing from less profitable areas of activity such as the RAIF (Reserved Alternative Investment Fund) that the Company established on the Luxembourg Stock Exchange. Market sentiment and hostile economic conditions have prevented this fund from achieving critical mass, so it has now been closed with the residual funds being returned to the original investor. The costs associated with this closure were fully provided for in the accounts to 31 March 2022.
In the full year accounts to 31 March 2022, I advised that the Company had acquired a 21% stake in LEBC Holdings Limited ("LEBC") and that the Board were working with the management of LEBC to maximise the value of this investment for the benefit of both sets of shareholders. As a part of the arrangements, the Company had agreed to acquire an unregulated business called Hummingbird from LEBC, that sells research on the asset class allocations for risk-based portfolios to third party asset managers. This acquisition was made in part to provide additional working capital to LEBC. However, as an alternative source of funding has now been identified by LEBC, the Company has agreed to sell Hummingbird back to LEBC on the same terms on which it was acquired. Completion of this transaction was announced by the Company on 1 December 2022.
Financial performance during the period
Adjusted EBITDA (defined as being Earnings before Interest, Taxation, Depreciation and Amortisation as adjusted to remove the distorting effect of one-off gains and losses arising on acquisitions/disposals, as well as other non-cash items) is highlighted as the Board considers this, rather than Operating Profit, to be the best measure of the Company's underlying performance.
During the period under review the Company has continued to attract new investment into its range of risk rated model portfolios. However, despite the strong relative investment performance of these portfolios, volatile market conditions have resulted in falls in the value of investment holdings.
The Group's results can be summarised as follows:
RESULTS FROM ONGOING ACTIVITIES 6 Months 6 Months Movement
(excluding TWL) ended ended
-------------------------------------- -----------------
30 Sept '22 30 Sept '21
-------------------------------------- -----------------
GBP'000s GBP'000s
-------------------------------------- ------------ ------------ -----------------
Gross revenues 17,334 14,688 18% increase
------------ ------------ -----------------
Adjusted EBITDA 147 (268) 155% improvement
------------ ------------ -----------------
Depreciation & Amortisation (497) (461) 8% increase
------------ ------------ -----------------
Share based payments (120) (269) 55% decrease
------------ ------------ -----------------
Provision for one-off reorganisation - (500) -
costs
------------ ------------ -----------------
Reported Loss from Operations (470) (1,498) 69% improvement
------------ ------------ -----------------
Loss per ordinary share (0.14)p (0.31)p 55% improvement
------------ ------------ -----------------
Net assets at Interim end 42,106 49,817 15% decrease
------------ ------------ -----------------
Cash resources at Interim end 4,151* 17,171 76% decrease
------------ ------------ -----------------
*Immediately following the period end, the Company received the first of three deferred consideration payments from Titan which took the Group's cash resources above GBP10 million.
Share buy backs and dividends
Since 1 April 2022, the Company has in aggregate bought back 3,300,000 ordinary shares of 1 penny each (3,000,000 at 9.35p per share and 300,000 at 7.00p per share). In each instance, the shares so purchased have been cancelled, which has enhanced the earnings per share attributable to the shares remaining in issue.
In July 2022, the Company paid an interim dividend of 0.07p per share, which was 40% higher than the dividend that was paid in October 2021.
Future prospects
The Board's focus is on maximising shareholder value. It intends to accomplish this, inter alia, by growing the dividend stream, completing further share buy backs and by building a much larger and more profitable business.
I look forward to updating shareholders in due course.
Oliver Cooke
Chairman
19(th) December 2022
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2022
Unaudited Unaudited
6 months 6 months
ended ended
30 September 30 September
2022 2021
GBP'000 GBP'000
Revenue 17,334 17,043
Cost of sales (11,577) (10,455)
------------ ------------
Gross profit 5,757 6,588
Administrative expenses (6,227) (6,536)
-------------- --------------
(Loss)/Profit from operations before
disposal (470) 52
Gain on sale of subsidiary - 35,786
-------------- --------------
(Loss)/Profit from Total Operations (470) 35,838
Adjusted EBITDA 147 1,288
------------------------------------------ --------------- ---------------
Depreciation & Amortisation (497) (467)
Share Based Payment (120) (269)
Provision for new costs as a consequence
of past reorganisation - (500)
-------------- --------------
------------------------------------------ --------------- ---------------
(Loss)/Profit from operations before
disposal (470) 52
------------------------------------------ --------------- ---------------
Finance costs (58) (115)
LLP members' remuneration charged as
an expense (277) (241)
------------ ------------
(Loss)/Profit before taxation (805) 35,482
Taxation - -
------------ ------------
(Loss)/Profit after taxation (805) 35,482
Minority interest in LEBC (58) -
------------ ------------
Profit after taxation and attributable
to equity holders of the Parent and
total comprehensive income for the
period (863) 35,482
====== ======
(Loss)/Profit per share
Basic (0.14)p 5.85p
====== ======
Diluted (0.13)p 5.85p
====== ======
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
Unaudited Audited
30 September 31 March 2022
2022
GBP'000 GBP'000 GBP'000 GBP'000
ASSETS
Current assets
Trade and other receivables 15,741 13,039
Cash and cash equivalents 4,151 15,274
----------------- -----------------
Total current assets 19,892 28,313
Non-current assets
Tangible fixed assets 1,656 1,733
Intangible assets 21,536 18,309
Investments in associates 10,002 -
Trade and other receivables 12,090 12,090
----------------- -----------------
Total non-current assets 45,284 32,132
----------------- -----------------,
Total assets 65,176 60,445
LIABILITIES
Current liabilities (7,683) (6,722)
Non-current liabilities
Loan & Lease liability (571) (731)
Payments due regarding purchase
of client lists (6,715) (1,298)
Provisions (7,839) (7,955)
Deferred taxation (262) (262)
------------------ ------------------
Total liabilities (23,070) (16,968)
------------------ ------------------
Total net assets 42,106 43,477
========= =========
Capital and reserves
Share capital 5,556 5,578
Share premium 1,553 1,541
Capital redemption reserve 531 501
Retained earnings 34,466 35,857
------------------ ------------------
Total equity 42,106 43,477
========= =========
The unaudited interim condensed consolidated financial statements were approved by the Board and authorised for issue on 19th December 2022.
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 SEPTEMBER 2022
Share Share Capital Retained Total
capital premium redemption earnings equity
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
31 March 2021 6,079 1,541 - 8,114 15,734
Profit after tax and total
comprehensive
income - - - 35,482 35,482
Equity settled share based
payments - - - 269 269
Buy back of shares (287) - 287 (1,365) (1,365)
Dividend payment - - - (302) (302)
------------- -------------- ------------- --------------- --------------
Unaudited 30 September 2021 5,792 1,541 287 42,198 49,817
-------------- -------------- ------------- -------------- --------------
Loss after tax and total
comprehensive
income - - - (5,842) (5,842)
Equity settled share based
payments - - - 745 745
Buy back of shares (214) - 214 (1,244) (1,244)
-------------- -------------- -------------- -------------- --------------
31 March 2022 5,578 1,541 501 35,858 43,477
-------------- -------------- ------------- -------------- --------------
Loss after tax and total
comprehensive
income - - - (863) (863)
Equity settled share based
payments - - - 120 120
Buy back of shares (30) - 30 (282) (282)
Acquisition of LEBC Hummingbird
Limited - - - 25 25
Issue of shares 8 12 - - 20
Dividend payment - - - (391) (391)
-------------- -------------- -------------- -------------- --------------
Unaudited 30 September 2022 5,556 1,553 531 34,466 42,106
-------------- -------------- -------------- -------------- --------------
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 SEPTEMBER 2022
Unaudited Unaudited
6 months ended 6 months ended
30 September 30 September
2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Cash flows from operating activities
(Loss)/Profit from normal Operations (805) 35,482
Adjustments for:
Share based payments 120 269
Depreciation on tangible fixed assets 303 337
Amortisation of intangible assets 194 130
Movement on one-off reorganisation
provision - 500
Finance costs 58 115
Gain on sale of subsidiary - (35,786)
----------------- -----------------
Cash flows (used in)/generated from
operating activities (130) 1,047
before changes in working capital
Increase in trade and other receivables (2,707) (727)
Increase in trade and other payables 1,832 961
----------------- -----------------
Cash (used in)/generated from Operations (1,005) 1,281
Investing activities
Intangible assets - client lists and
internally developed assets (334) (837)
Purchase of tangible fixed assets (276) (870)
Sale of client lists 100 -
Purchase of subsidiary (1,515) -
Purchase of share in associate (6,060) -
Deferred consideration payments (1,054) (1,082)
Cash received on sale of subsidiary - 19,288
----------------- -----------------
Net cashflow (used in)/generated from
investing activities (9,139) 16,499
Financing activities
Finance costs (58) (115)
Leases (152) 304
Loan Repayments - (3,588)
Buy back of shares (281) (1,365)
Dividend payment (391) (302)
----------------- -----------------
Net cashflow used in financing activities (882) (5,066)
----------------- -----------------
Net change in cash and cash equivalents (11,026) 12,714
Cash at start of period 15,177 4,457
------------------ ------------------
Cash at end of period 4,151 17,171
========= =========
TAVISTOCK INVESTMENTS PLC
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 SEPTEMBER 2022
1. ACCOUNTING POLICIES
Basis of preparation
The interim condensed consolidated financial statements have been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) adopted by the UK.
The accounts have been prepared in accordance with accounting policies that are consistent with the March 2022 Report and Accounts and that are expected to be applied in the Report and Accounts of the year ending 31 March 2023.
The financial information does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. Statutory accounts for Tavistock Investments Plc for the year ended 31 March 2022 have been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
2. SEGMENTAL INFORMATION
A segmental analysis of revenue and expenditure for the period is:
Group Investment Advisory Unaudited Unaudited
(Plc) Management Business 30 September 30 September
2022 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 174 543 16,617 17,334 17,043
Cost of sales (144) (128) (11,305) (11,577) (10,455)
------------- ------------- ------------- ------------- -------------
Gross profit 30 415 5,312 5,757 6,588
------------- ------------- ------------- ------------- -------------
Attributed Expenses (1,761) (398) (3,948) (6,107) (5,768)
Other Administrative Expenses
Share based payments (120) (268)
Provision for one off reorganisation
costs - (500)
------------- -------------
(Loss)/Profit from operations before
disposal (470) 52
====== ======
The segmental analysis above reflects the parameters applied by the Board when considering the Group's monthly management accounts. The Directors do not consider a division of the statement of financial position to be appropriate or useful for the purposes of understanding the financial performance and position of the Group.
During the period under review, the Group operated and earned revenue exclusively within the UK.
3. (LOSS)/EARNINGS PER SHARE
Unaudited Unaudited
6 months ended 6 months
ended
30 September 30 September
2022 2021
(Loss)/Earnings
per share has
been calculated
using the
following:
(Loss)/Profit
after taxation
(GBP'000) (805) 35,482
Weighted average
number of
shares ('000s) 557,443 606,208
-------------- --------------
(Loss)/Earnings
per ordinary
share (0.14)p 5.85p
====== ======
Weighted average
number of
shares and
share options 638,239 606,208
that were -------------- --------------
exercisable at
period end
('000s)
(Loss)/Earnings
per diluted
share (0.13)p 5.85p
====== ======
(Loss)/Earnings per ordinary share has been calculated using the weighted average number of shares in issue during the relevant financial periods. IAS 33 requires presentation of diluted EPS when a company could be called upon to issue shares that would decrease earnings per share or increase the loss per share. There would be dilutive impact were the share options to be exercised.
4. DISPOSAL OF SUBSIDIARY UNDERTAKINGS
During the previous financial period, the Group disposed of its interest in Tavistock Wealth Limited ("TWL") to Titan Wealth Holdings Limited ("Titan") for a consideration of up to GBP40 million in cash, with the deferred proportion of the overall consideration linked to the achievement and maintenance of an average of GBP6 million of gross revenues per annum within TWL.
The calculation of the profit arising from this transaction can be summarised as follows.
Unaudited
30 September
2021
GBP'000 GBP'000
Initial Consideration 20,000
Less:
Write off of the goodwill and net assets associated
with Tavistock Wealth (2,349)
Transaction costs (359)
Balance sheet deficit as defined by the SPA (7)
-------------
(2,715)
Deferred Consideration 20,000
Less: Discount at average cost of funds to reflect
the current value of future receipts (1,499)
-------------
(1,499)
-------------
Reported Gain 35,786
======
In calculating the gain summarised above, the Directors exercised
the following material judgements and assessments:
* the initial consideration received is non-refundable,
* based upon the aggregate of the assets introduced by
Tavistock to Titan as a part of the transaction, the
additional assets anticipated to be introduced in the
future from Tavistock's ongoing activities and the
assets that will either be introduced as a
consequence of Tavistock's planned acquisition
strategy or otherwise, the Directors are confident
that TWL's gross annual revenues will exceed the GBP6
million performance benchmark referred to in the sale
and purchase agreement entered into with Titan. Based
upon this judgement, it has been assumed that the
deferred consideration will be received in full,
* a discount rate of 4% per annum has been applied to
the deferred consideration to reflect that point's
present day value.
5. INTANGIBLE ASSETS
Customer Goodwill Internally
and Adviser Arising Developed
on
Relationships Consolidation Assets Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost
Balance at 1 April 2022 (Audited) 4,862 12,600 1,587 19,049
Additions 331 3,024 166 3,521
Disposals (100) - - (100)
------------- ------------- ------------ ---------------
Balance at 30 September 2022
(Unaudited) 5,093 15,623 1,753 22,470
------------- ------------ ------------ ---------------
Accumulated amortisation
Balance at 1 April 2022 (Audited) 707 - 33 740
Amortisation 177 - 17 194
------------ ----------- ------------ ---------------
Balance at 30 September 2022
(Unaudited) 884 - 50 934
----------- ------------ ------------ ---------------
Net Book Value
------------ ------------ ------------ ------------
Balance at 30 September 2022
(Unaudited) 4,209 15,623 1,703 21,536
====== ====== ====== =======
Balance At 31 March 2022
(Audited) 4,155 12,600 1,554 18,309
====== ====== ====== =======
6. INVESTMENT IN ASSOCIATES
In April 2022, the Company received regulatory approval from the FCA and completed the acquisition of a 21% stake in LEBC Holdings Limited ("LEBC") for a consideration of GBP10 million.
LEBC is an independent national business providing financial advice to retail clients and employee benefits advice to corporate clients. LEBC is estimated to have c.78,000 clients with GBP4.2 billion of assets under advice. The Board is working closely with the management of LEBC to maximise the value of this investment for the benefit of both sets of shareholders.
As a part of the arrangements, the Company also agreed to acquire an unregulated business called LEBC Hummingbird Limited ("Hummingbird") that sells research on asset class allocations for risk-based portfolios to third party managers, for a consideration of GBP3 million. The acquisition was made in part to provide additional working capital to LEBC. However, as an alternative source of funding has now been identified by LEBC, the Company agreed to sell Hummingbird back to LEBC on the same terms on which it was acquired. Completion of this transaction was announced by the Company on 1 December 2022.
7. SHARE CAPITAL
Unaudited Audited
30 September 31 March
2022 2022
GBP'000 GBP'000
Called up share capital
Allotted, called up and fully paid
5,555,212 Ordinary shares of 1 pence each 5,556 5,578
(31 March 2022: 557,677,576)
Capital redemption reserve 531 501
====== ======
6,087 6,079
Share premium 1,553 1,541
------------ ------------
7,640 7,620
====== ======
During the period, the Company has bought back 3,000,000 ordinary shares of 1p for 9.35p each. The shares purchased have been cancelled, which enhanced the earnings per share attributable to the shares remaining in issue. Also, during the period, 755,000 of share options have been exercised and added to share capital.
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END
IR QKLFFLLLXFBD
(END) Dow Jones Newswires
December 20, 2022 02:00 ET (07:00 GMT)
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