Tavistock Investments Share Discussion Threads

[smithie6] 17/2/2022 21:05

The 2 exec. dirs imo do not comply/respect the the stated Company Principles/values as given in the 2021 accounts.

Nor the 2 non-exec dirs who are required to supervise/review/ensure that the execs comply.

They do not comply for example with this imo
"Principle 8: Promote a corporate culture that is based on ethical values and behaviours"

Taking 20% shares options for themselves & 9% for staff in <10 years (=29% ) when the official market recomendations for good company governance is a max of 10% in 10 years.

Intentionally hiding from shareholders imo the ~42 million shares that they received/took for free on 31st July '16

with the company being LOSS making & giving BAD share price performance at that time

is not showing imo "ethical values & behaviours"

------

Nor the 2 non-exec dirs comply with the company principles/values since they are required to supervise/review/ensure that the execs comply.

"Principle 7: Evaluate board performance based on clear and relevant objectives...."

Yet the non-execs happily award 29% of the company via options without performance requirements.

[smithie6] 17/2/2022 20:53

Btw

Free shares to the 2 exec. dirs.

On 31st July 2016.

21 million shares each.

At the time there were 363+22 million shares = 385 million

The 2 dirs. had G shares, convertible to 10% of the company, including the new shares. Without any performance conditions that are visible.

That is about 42.5 million shares, 21 million shares to each of the exec. dirs. to give a new number of shares of
~427 million shares.

This information is imo very difficult to deduce.

The information has been "intentionally" hidden imo by these directors. And no perf. conditions are revealed, all very opaque.

----------

Despite getting 10% of the company for free in July 2016 these 2 exec dirs. have managed to get themselves another option for 70 million shares (40+30) @ 5.25p
~10% of the company, including these new shares

exercisable immediately it appears ('if' the AGM for the year to March 2022 approves the report of the renumeration committee, ie. these 70 million options).
-------

There is another ~9% of share options for other staff. With no performance conditions.
-----
So
10% (free, 31st July 2016) + ~10% @ 5.25p for these 2 directors (if approved at the next AGM + ~9% for staff

=29% !!

!!!!

-------

In return the company has effectively paid no dividends since it started in 2013-4.
And the share price is below the price of 7.5p/share that was paid for many new shares when issued.
They demand/take reward for high performance but are careful to avoid any perf. conditions on any options !!

And the share price has gone no where !!

Option price of 5.25p. Shameful !!
They already took 10% of the company for free. They should now show growth in the share price for any new reward. Many shares have been issued at 7.5p.
The exercise price should be higher.
eg. 10p.
If they claim they are stars & deserve their combined £750k/year pay then let us see it in the company results. And then 10p exercise price will be easy & they shouldn't complain.

-------

I can see why 2 big shareholders refused to agree to the new option plan.

S6. :-)

[smithie6] 17/2/2022 13:26

QuePassa

£750k renumeration total for the 2 execs. last year

And how many millions of shares have the 2 execs taken for free (conversion of the G shares) ?

And dirs. & insiders have options for 19%.
19% !!
When the recommendation in the UK is a max. of 10% in 10 years. The dirs ride roughshod over the guidelines.

And dividends to shareholders ?

Is it just a total of £50k in 9 years since this venture took over a listing ?

You agree that the directors have made some millions of £ out of Tavistock while shareholders have got effectively nothing out of it in return for risking their money ?!

[makeamillion3] 17/2/2022 13:12

Thanks for that Mr C. Well sidestepped. If in doubt copy and paste something. Must have a load of responses in a word document so u can copy and paste whichever suits. Bravo…

[quepassa] 17/2/2022 13:06

Excellent to see management fully incentivised by way of equity holdings and equity options to make the business prosper.

Management interests are fully aligned with shareholders - where a strongly rising share price will benefit all shareholders alike whether management or individual.

Such concrete evidence of real management skin in the game in the form of equity is a winning formula for all shareholders - and adds a great deal of confidence that management will be focused and highly incentivised on delivering shareholder value.

On the basis of recent strong corporate performance and the dramatic increase in shareholder value, the equity incentivisation for management is showing outstanding results.

With more to come.

A lot more.


ALL IMO. DYOR.
QP

[smithie6] 17/2/2022 12:59

Departure of Chris Peel.
A Tavistock Wealth spokesperson said there were ‘differences&#8217; in opinion between the business and Peel, as well as questions around performance, which ultimately led to him leaving the business..... We would like to thank Chris [Peel] for his contribution to the development of the group,’ the spokesperson said

-----
1) Did Chris Peel then sell his shares ?

2) have any of the managers departed ?
1 non-exec. departed I recall.

----

The 'high growth in asset values under the new inv. manager'.
It was in 2020 I believe. After the severe market dip in March/April, just about every share rose. You could have thrown darts to pick shares & made good profits. (I know that I did).

[makeamillion3] 17/2/2022 12:44

Just find some of your post hilarious QuePassa…. Hypocrite to the highest order.

Mistrust is a word you use.
Yet you support Raven and Cooke, unless, you are……. Hmmmm unbelievable

QuePassa
11 Feb '19 .
12:39 - 1899 of
2891
n
A 21
This share price performance since the disastrous post-
IPO sales forecast miss has been truly atrocious.
this share price has slumped from its peak of 250p to
the current 63p.
That's almost 75% down from its peak .
The thing is that if the management got their forecasts
so badly wrong once, you have to ask yourself if they
can do it again. Are they to be trusted?
Personally, I found today's update full of unnerving
caveats about Brexit. It was by no means a
straightforward statement.
I treat this share and this management with a great
deal of distrust.
Whilst UPGS has enjoyed a recent bounce, it remains
woefully down on its peak price and its IPO price.
This is in my opinion an extremely volatile and risky
share with a management team which has a track-
record of disappointing by badly missing its own sales
forecasts.
ALL IMO. DYOR.

[smithie6] 17/2/2022 11:39

The 2 exec. dirs cost £750k last year !

Including bonus payment.

They made a sale worth "up to" £40 million this year. £20 received so far. (What will the real payment be ??)

So phps they take themselves a bonus of £1 million each this year !!, = £2 million ! Who knows what it might be.

[smithie6] 17/2/2022 08:51

Anyone else remember Creston ?

It was similar in many ways to Tavi.
A new venture taking over a listing to do marketing services. Main exec. with solid CV.
The business model was the same as that of TAVI, via acquisitions.
The main exec. managed to get very well paid due to his CV. And managed to get lots of options.
Giving very high wages & awarding lots of options (with perf. targets) coupled with the solid CV of the main exec. made the big shareholders happy, they allowed the main exec to get some millions of shares so that he had skin in the game. The insti shareholders assumed that they would now make money.

Sadly despite operating for some years it was a damp squib. In my opinion it didn't succeed in part since the MD paid high prices for the acquired companies & did not want to upset the directors of the acquired companies so they were usually kept on, with high wages. No hard cost cutting at acquired companies to try to improve group profit.
Sure, a much bigger company was created but the profit per share stayed static, year after year !

Eventually big shareholders sold/reduced after giving up hope & finally the co. was sold so the instis could get their money back.
It didn't collapse. But it was effectively a waste of time for shareholders who were risking their money.
The main exec. made about £6-10 million I think I recall.

My point ?
Paying high wages to some exec. that claims he is an expert & deserves a super high wage & giving him shed loads of options might give some shareholders a warm feeling that they are backing a winner but it is not true.

There are skilled experienced execs at companies like Touchstar & Coral (CRU) Plastics but their pay, bonuses & share options are modest/reasonable imo. And since they became the exec. those 2 companies have done well.

[makeamillion3] 17/2/2022 08:19

I love the fact that long standing holders have seen this, and now a relatively new holder having a read back also spots it. Yet QP offers no explanation or fact.
Well done to you and Mr Raven. How do some people sleep at night?

[makeamillion3] 17/2/2022 08:19

I love the fact that long standing holders have seen this, and now a relatively new holder having a read back also spots it. Yet QP offers no explanation or fact.
Well done to you and Mr Raven. How do some people sleep at night?

[smithie6] 17/2/2022 08:10

19% share options
Will it be increased to 29% this year ?!

------

Amount paid out as divis since starting in 2013 ?
£50k in total ?!

[russman] 17/2/2022 07:16

There can be no justification for the increase in their share options, especially without performance targets aligned to minority stakeholders.
Plot the share options date, number & exercise price against the share price for the last 5 years.

[mandarin4] 17/2/2022 07:15

Smithie, no performance targets for managers now, well why would you want your son to have targets when good old dad doesn’t ?

[mandarin4] 17/2/2022 07:13

As I’ve said previously QP, being in POLE position on that list is an embarrassment to Cooke and Raven. Should hang their heads in shame.

[quepassa] 17/2/2022 05:46

Share price today 6p and rising fast.

The recent glowing article in Investors Chronicle where Tavistock Investments was in POLE POSITION and TOP of the 2022 BARGAIN LIST points to further momentum.

Management and shareholder interests are fully aligned with much important management SKIN IN THE GAME through equity stakes and equity options.

ALL IMO. DYOR.
QP

[makeamillion3] 17/2/2022 00:42

Smithie-
Welcome to this forum. Breath of fresh air. Please continue to question the BODs and ignore QP’s awful non existent responses.
BOD’s and shareholders aligned? Really? Ok still down yet these two greedy guys ‘plus associates and business friends’ are up. Very well aligned! Cheers.
Destroyed the share price from 7.5p to 1.5p, filled their boots and now claim to be hero’s… do me a favour. Would love to have a chat in the pub with these two

[smithie6] 16/2/2022 22:31

At Liontrust there is a tense situation with 46% voting against the incentive plan.
(Directors' often think that because they are in charge on a day to day basis that they start to think that the company assets belong to them)


"Liontrust Asset Management PLC - FTSE 250-listed London-based investment fund manager - Nearly 46% of shareholders vote against company's director remuneration policy at general meeting on Wednesday"
From the website lse.

[smithie6] 16/2/2022 21:41

QP
You wrote

"On the basis of recent strong corporate performance and the dramatic increase in shareholder value, the equity incentivisation for management is showing outstanding results"

Not true imo

Cash raised from issuing shares as at 2017-18. Ref. the 2018 accounts.
=£40 million. (X million subsequently from the share premium account but that doesn't change the true amount of money raised)

The cap. value now is £36 million. So shareholders are sitting on a loss of 10% on the money they put in to the company.

The recent rise in the share price has imo reduced the "loss" that shareholders are sitting on.
While last year the 2 execs. got annual renumeration of £750k. They get rich while so far the funding shareholders have lost 10%.
It is easy to see why many PIs posting on this thread are not so happy. (Some cash raise(s) was done at ~7p. Current share price is 6p X years later !)

[smithie6] 16/2/2022 21:00

QP
"Such concrete evidence of real management skin in the game in the form of equity is a winning formula for all shareholders..."

Only 1 institucional shareholder has been attracted to invest to hold >3% of the shares. You claim "a winning formula", the instis do not seem to agree with you.

Many instis probably will not invest because the dirs, managers & related parties control the company via their votes/shares; so the controlling team could double their wages or whatever they want & no one could do anything !!

You agree ?

[smithie6] 16/2/2022 20:52

QP

If you believe in share options as an incentive, what is your opinion about the intentional removal of the performance targets ?

You agree that at all listed companies it is normal to give performance targets for share options ? But that at Tavistock there are no performance conditions for the 19% share options !

[smithie6] 16/2/2022 20:08

Pay/renumeration of the 2 exec. dirs.

2018 £442k
2019 £530k
2020
2021 £750k

I guess that with this % increase in pay the 2 execs. don't worry about the current inflation in the cost of living !