Tavistock Investments Share Discussion Threads

[origami74] 11/8/2017 17:13

hxxp://citywire.co.uk/new-model-adviser/news/tavistock-eyes-dividend-as-losses-fall/a1038693

[chrisdgb] 11/8/2017 08:07

Cheers for the comments, let us hope we can get some fresh buyers on board..........

[origami74] 10/8/2017 21:55

When Tavistock bought Financial Limited it was the remnants of a bombed out network. The acquisition bought a clean sweep of systems and controls and a set of member firms. On acquisition Financial Limited had lost a number of members, high quality members to other networks or advisory firms. Therefore the quality of advisers left were not top notch.

Having used the systems and controls TAVI attracted 39 member firms into the part of the business where they could be bought out in the future. The acquisition of Financial Limited appears expensive given the sale price but all the clean compliance structure was worth it.

The business sold to Sanlam is the dross which is left - These businesses had two opportunities to amortize value and couldn't do so. I suspect they are small IFAs with shrinking client banks and clients invested in small pension pots with GARs. The cost of maintaining these is not worth it.

It is 1M in bank for something which brings turnover (vanity) rather than profit (sanity). An excellent disposal.

Why the market has reacted negatively I do not know. Hopefully we will have a broker report giving an indication of future earnings and potential for a dividend.

[chrisdgb] 10/8/2017 15:41

Very frustrating, director purchases now corporate stuff has been cleared to highlight the optimism/AUM........!!??

[wanttowin] 10/8/2017 14:08

sp now lower than the recent excellent results and 14.3% spread ????

[westcountryboy] 10/8/2017 10:52

Yes, good news I think but weirdly more stock available, just bought 100k at 3.43p...

[chrisdgb] 10/8/2017 08:02

Interesting disposal today........

[westcountryboy] 09/8/2017 11:35

Spread back to being ludicrous, so I won't be buying any more just yet. This really is a tiddler....

[chrisdgb] 09/8/2017 08:34

No note yet from Allenby, hence the need for a higher market profile/pr.........or new broker!

[chrisdgb] 07/8/2017 08:55

Some good comments here and markets are certainly helping AUM...........

[westcountryboy] 05/8/2017 21:06

Yes looking back there was a flurry on Tuesday but it's interesting how small the amounts involved were. I can see about a million shares in all bought at 4p or above which is only £40k out of a market cap of £17m. It was very difficult to buy, in fact. I was fortunate that I was forced to wait until the froth came off to buy 50k at 3.8p and by Thursday was able to buy another 100k at 3.48p. Now up to 350k in all but that's only 0.07% of the company and I bet others have a lot more!

[origami74] 05/8/2017 11:22

With a market Cap of less than 20M the best way for institutions to buy in is with fund raising. The spread as shown is 3.25 to 3.75. It is very hard for an institution to build a position from here. A road show would only really help in this situation.

If you invested at 2p during the fund raise to buy Financial Network then you may have a position as there were loads of shares floating about.

The Directors and related parties hold a large number of shares. I would be interested to know how many holders have say 500000 or more shares.

When the RNS was released there was a flurry of buys at 4.25p. I wonder if the rest of the week is gap filling down to the pre RNS price for a steady build back above 4p.

[kingston78] 04/8/2017 17:25

Value is a matter of perception whereas price is a matter of supply and demand. When a good company's share price goes nowhere because of limited demand from existing shareholders (no one has a bottomless pocket)it is time for the company to go for a charm offensive, such as a road show to a wider investor audience. A good broker would be able to market the shares to reputable institutions and push up the share price.

[ny boy] 04/8/2017 15:51

Starting to tick up, patience required the markets are bullish.

[chrisdgb] 03/8/2017 15:44

Maybe we need a new broker to stir up some interest............

[its the oxman] 03/8/2017 09:21

Looks like the shares have gone back to sleep. Shame. Long term hold box for these now. Can be that the market wants to see a few decent sets of profitable results strung together before it believes the story.

[glasshalfull] 02/8/2017 19:37

Yes origami. Agree, & delighted with the progress TAVI has made. Now profitable & cash generative.

I was also waiting for a broker update from Allenby before posting, but haven't seen one as yet. The Dec 2016 research indicates that TAVI was ahead of forecasts on revenue & profitability under EBITDA: -

* £36.4m turnover (vs £34.4m forecast)
* £537k EBITDA (vs £501k forecast)...and up from £103k in 2016
* £900k loss (vs £1.162m loss forecast)...significant improvement from the £2.769m loss in 2016.
* Loss was only £212k in H2 2017 & turned profitable in Q4
* £769 million FUM (vs £600m forecast)

Will be good to get some flavour on whether cash generation impacted by seasonality or due to advice fees as origami suggests and also get some updated forecasts now they've achieved the inflexion point given their relatively fixed cost base & move into profitability.

Kind regards,
GHF

[its the oxman] 02/8/2017 16:26

Anyone got any broker / forecast eps figures?

[origami74] 02/8/2017 15:28

Now had a chance to pick my way through the results and forward statements..

Overall great progress has been made and as stated the company has reached an inflection point. Strong increase in FUM but it is unclear how much of this is organic and how much is from PB and Abacus Clients.

Here is the part of the RNS which might hold the share price back...

"During the second half of the financial year, the Group succeeded in generating some £497k of cash from operations. Of this amount, some £96k was generated in the third quarter of the year and £401k was generated in the fourth quarter. This positive trends in marked contrast to the first half of the year, during which period Group operations absorbed over £950k of cash. The Group has continued to generate cash from its operations, albeit at a lower rate, since the balance sheet date."

So what is the cash generation since the balance sheet?

We await further broker notes to clarify this. but it will be due to the advice fees charged to move under the Acumen portfolio proposition.

[wanttowin] 02/8/2017 14:22

happy long term hold for me after the recent results.

[chrisdgb] 02/8/2017 10:09

I agree that is the issue, we need to keep banging on about it and hopefully we get some press coverage as well..Otherwise focus on the next deal..!

[kingston78] 02/8/2017 09:11

I am surprised that the share price has not gone up much further. The results are very positive and the future is bright. Maybe there is not much investor following; it is the Company's and the Brokers' job to promote the company to a wider audience.

[its the oxman] 02/8/2017 08:51

Disappointing from chart view that it's not broken over 4p. Still time though.

[letmepass] 01/8/2017 21:11

Lots of acquisitions. Building a strong base with increased revenue..