We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.15 | 3.45% | 4.50 | 4.00 | 4.70 | 4.625 | 4.35 | 4.35 | 155,000 | 16:35:25 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Finance Services | 33.95M | -1.4M | -0.0025 | -17.40 | 24.38M |
From Apr 2019 to Apr 2024
TIDMTAVI
RNS Number : 6709E
Tavistock Investments PLC
10 November 2020
Tavistock Investments Plc
("Tavistock" or the "Company")
Interim Accounts
10 November 2020
Tavistock Investments Plc (AIM:TAVI) announces its unaudited interim results for the six months ended 30 September 2020.
Financial highlights
-- 25% increase in the level of adjusted EBITDA compared to the same period last year
-- Higher operating profit from lower gross revenues with adjusted EBITDA of GBP1.3 million on gross revenues of GBP13.4 million
Operational highlights
-- The leadership team is well advanced with a comprehensive Group-wide reorganisation expected to deliver more than GBP750,000 of annual cost savings
-- Investments
- Tavistock Wealth increased contribution to the Group's adjusted EBITDA by 32% to GBP2.0 million
- Level of FUM (funds under management) remained steady at GBP1.1 billion -- Protected products
- The Company's newest fund, the ACUMEN ESG Protection Portfolio, has performed particularly well to date, with its NAV (net asset value) dropping by just 1% between inception in December 2019 and the end of October 2020, compared to the FTSE 100 falling by almost 17% over the same period
- The fund won the Innovation Award at the 2020 Moneyfacts Investment Life & Pension Awards, beating competition from other much larger nominees
-- Advisory
- Increased contribution to the Group's adjusted EBITDA by 344% to GBP964,000, predominantly resulting from the eradication of losses previously experienced by two entities.
Brian Raven, Chief Executive of Tavistock Investments, said: "In a year of unprecedented pressure on our business, I am delighted by our Group's performance and by how well our management team has adapted. We have undertaken a comprehensive cost saving exercise and are accelerating plans to significantly scale up our business. I am confident that these initiatives will enable us to deliver greater value to our shareholders and look forward to managing a growing dividend for their benefit."
Post-period update
-- The Company is about to launch a new low-cost platform service, the Tavistock Platform, for use by the clients of the Group's advisers. The Group will then be delivering all aspects of the financial services value chain to retail clients - financial advice, investment management and the platform service that provides for the administration and custodianship of clients' assets.
-- It is currently difficult to assess precisely how the Group will perform in the second half of its financial year, given the variable possibilities with regard to the Brexit outcome, the Government's public health policy and the impact on markets of the US Presidential election result. However, the Directors are confident that the initiatives underway will enable the Company to continue to increase operating profit and recommence the payment of a dividend.
Ends
Enquiries
Tavistock Investments Plc Tel: 01753 867000 Oliver Cooke Brian Raven Allenby Capital Limited Tel: 020 3328 5656 Nick Naylor, Nick Athanas, Liz Kirchner Corporate Finance Tony Quirke Sales Vested Tel: 07540 496 159 Sophie Paterson
TAVISTOCK INVESTMENTS PLC
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHSED 30 SEPTEMBER 2020
I am pleased to report that the business has performed particularly well in the face of the pandemic, the related Government imposed restrictions, and their impact on both customer confidence and the market value of investment assets. The Directors are now turning their focus to the development of a substantially larger business.
The Government's imposition of a national lock-down took the population by surprise. However, the leadership team reacted swiftly and successfully transitioned the business to home-working and the use of new technology. They also moved quickly to reduce the Group's operating costs in response to what was then seen as an unquantifiable threat to the business.
As a consequence of these decisive actions, the Company has been able to report an increase of 25% in the level of adjusted EBITDA (earnings before interest tax depreciation and amortisation) compared to the same period last year and is well positioned to deal with the second lock-down.
The leadership team has also undertaken a detailed review of business operations and is well advanced with a comprehensive Group-wide reorganisation exercise. Upon completion, this is expected to deliver over GBP750,000 of annual cost savings.
The reorganisation includes a reduction in the number of offices being occupied by the Group, from eleven to six, the loss of some senior as well as junior staff, and the withdrawal from less productive areas of business activity. One such activity was the Group's association with the Law Society which both parties agreed to terminate amicably, once it became apparent that the relationship was unlikely to deliver an appropriate level of return to Tavistock.
The Government's response to the emergence of a second wave of the pandemic, the imminence of the UK's departure from the European Union and the consequences of the US Presidential election result are all factors that make it difficult to assess the Company's likely performance in the second half of the financial year.
However, the leadership team is confident that the business will continue to perform well over the medium and long term. In addition to focusing on the optimisation of the Group's facilities, the containment of costs and the improvement of operational efficiency, they are progressing with plans to deliver greater value to shareholders.
Investment Management
During the period, Tavistock Wealth increased its contribution to the Group's adjusted EBITDA by 32% from GBP1.5 million in the six months to 30 September 2019, to GBP2.0 million.
The level of FUM (funds under management) remained steady at GBP1.1 billion (30 September 2019 GBP1.1 billion) despite the recent blows to customer confidence and the sudden and sustained falls in the market value of investment assets.
The Company's newest fund, the ACUMEN ESG Protection Portfolio, has performed particularly well to date and won the Innovation Award at the 2020 Moneyfacts Investment Life & Pension Awards, beating off competition from other much larger nominees including 7IM, Standard Life, Brooks McDonald, Investec and Legal & General.
The fund's NAV (net asset value) dropped by just 1% between inception in December 2019 and the end of October 2020. By comparison, the FTSE 100 fell by almost 17% over the same period.
Advisory
During the period, the Advisory business increased its contribution to the Group's adjusted EBITDA by an impressive 344%, from GBP217,000 to GBP964,000. This predominantly resulted from the eradication of the losses previously experienced by two entities.
New business levels are heavily influenced by advisers' ability to meet with clients and recurring revenue levels are linked to the underlying value of the clients' investment assets. Both have been adversely impacted in the short-term by recent events. During the six months to 30 September 2020, the overall level of Advisory gross revenue fell by 8% in comparison with last year, from GBP11.6 million to GBP10.7 million.
Financial Performance
During the period, the Directors delivered higher operating profit from lower gross revenues, enabling the Group to report adjusted EBITDA of GBP1.3 million on gross revenues of GBP13.4 million (comparative period, EBITDA of GBP1.0 million on gross revenues of GBP14.3 million).
At the end of the period the Group had available cash resources of GBP4.0 million (31 March 2020 GBP2.4 million).
Cash resources were boosted by the draw-down of a CBILS loan facility and by GBP785,000 of cash generated from operations (comparative period GBP1.0 million). During the period the Group spent some GBP101,000 on the purchase of fixed assets, much of which was to facilitate the move to home-working, GBP687,000 on payments toward the purchase of client books and GBP257,000 on key initiatives. Debt and finance obligations were also reduced by GBP392,000.
At 30 September 2020, the Group had net assets of some GBP15.0 million (31 March 2020 GBP15.4 million) with the reduction from 30 September 2019 resulting from the GBP5.0 million provision against the carrying value of acquired intangible assets that was made in the Group's audited accounts for the financial year ended 31 March 2020. However, as a consequence of having made this provision, the amortisation charge in the period under review was some GBP390,000 lower than in the equivalent period last year.
During the period, the Group established a reorganisation reserve of GBP1.2 million to meet the one-off costs of the exercise referred to above. Given the GBP750,000 of anticipated annual savings, full payback will be achieved in less than two years.
The Group's results for the period can be summarised as follows:
Hot Features
Premium
6 Months ended 6 Months ended Movement
30 Sept '20 30 Sept '19
GBP'000s GBP'000s
Gross Revenues 13,380 14,311 7% decrease
--------------- --------------- --------------
Reported adjusted EBITDA 1,260 1,006 25% increase
--------------- --------------- --------------
Depreciation &
Amortisation (326) (755) 57% decrease
--------------- --------------- --------------
Share based payments (13) (131) 90% decrease
--------------- --------------- --------------
Profit from operations
before reorganisation
reserve, investment write
off and minority interest 921 120 668% increase
--------------- --------------- --------------
Reorganisation provision (1,200) - -
--------------- --------------- --------------
Investment write off - (133)* -
--------------- --------------- --------------
Minority interest (22) - -
--------------- --------------- --------------
Reported Loss from operations (301) (13) -
--------------- --------------- --------------
Loss per share 0.07p 0.01p -
--------------- --------------- --------------
*Write-off of investment in strategic relationship with Lighthouse Group Plc.
Future Prospects
The Directors plan to deliver greater value to shareholders through the resumption of dividend payments this year and other developments that they expect will lead to increases in the Company's share price.
Distributable reserves are a prerequisite for the payment of dividends, and these have now been created through the successful completion of a Court sanctioned process. The Directors look forward both to the resumption of dividend payments and to the management of a growing dividend stream for the benefit of shareholders.
The Group is about to launch a new low-cost platform service, the Tavistock Platform, for use by the clients of the Group's advisers. The Group will then be delivering all aspects of the financial services value chain to retail clients - financial advice, investment management and the platform service that provides for the administration and custodianship of clients' assets.
At that point, the Company will have established a solid, commercially successful base upon which to develop a much more substantial business.
The Directors consider that the Company is chronically undervalued with a market capitalisation of some GBP10.0 million and have confirmed this view in discussions with independent experts. At its current microcap scale, the Company's share price is susceptible to volatile movements based upon extremely low trading volumes and values. For example, in the month of October 2020 there were just 55 trades, for a total of 868,000 shares at an aggregate value of less than GBP14,000. This represents less than 0.15% of the Company's issued share capital. Yet this very low level of activity resulted in a 30% adverse movement in the share price.
The Directors believe that such disproportionate volatility can only be eliminated effectively through the development of a much larger, dividend paying business with a higher proportion of the Company's shares in public hands. This would be best achieved by combining continued organic growth with an accelerated, acquisition-led growth strategy. The Directors are actively focused on how best to achieve such a strategy in a manner that delivers value to shareholders before rewarding the leadership team. I look forward to updating you in due course.
It is currently difficult to assess precisely how the Group will perform in the second half of the financial year, given the variable possibilities with regard to the Brexit outcome, the Government's public health policy and the impact on markets of the US Presidential election result. However, the Directors are confident that the initiatives highlighted in this report will enable the Company to continue to increase operating profit and recommence the payment of a dividend.
I look forward to updating you on progress.
Oliver Cooke
Chairman
10(th) November 2020
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2020
Unaudited Unaudited
6 months ended 6 months ended
30 September 30 September
2020 2019
Note GBP'000 GBP'000
Revenue 2 13,380 14,311
Cost of sales (7,660) (8,500)
------------ ------------
Gross profit 5,720 5,811
Administrative expenses (6,021) (5,824)
-------------- --------------
Loss from operations (301) (13)
Memorandum:
Adjusted EBITDA 1,260 1,006
Depreciation & amortisation (326) (888)
Restructuring provision (1,200) -
Share Based Payment (13) (131)
Minority interest (22) -
-------------- --------------
Loss from operations (301) (13)
Finance costs (115) (119)
------------ ------------
Loss before taxation and attributable
to equity holders of the parent (416) (132)
Taxation - 54
------------ ------------
Loss after taxation and attributable
to equity holders of the parent and
total comprehensive income for the
period (416) (78)
====== ======
Loss per share
Basic 3 (0.07)p (0.01)p
====== ======
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2020
Unaudited Audited
30 September 2020 31 March 2020
GBP'000 GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Tangible fixed assets 774 915
Intangible assets 4 17,576 16,907
----------------- -----------------
Total non-current assets 18,350 17,822
Current assets
Trade and other receivables 6,025 4,998
Cash and cash equivalents 3,974 2,416
----------------- -----------------
Total current assets 9,999 7,414
----------------- -----------------
Total assets 28,349 25,236
LIABILITIES
Current liabilities (5,659) (4,994)
Non-current liabilities
Loan & Lease liability (3,620) (1,396)
Payments due regarding purchase
of client lists (927) (1,234)
Provisions (3,062) (2,115)
Deferred taxation (93) (93)
------------------ ------------------
Total liabilities (13,361) (9,832)
------------------ ------------------
Total net assets 14,988 15,404
========= =========
Capital and reserves
attributable
to owners
of the parent
Share capital 5 13,426 13,426
Share premium 6,001 6,001
Retained earnings (4,439) (4,023)
------------------ ------------------
Total equity 14,988 15,404
========= =========
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 SEPTEMBER 2020
Retained
Share capital Share premium earnings Total equity
GBP'000 GBP'000 GBP'000 GBP'000
31 March 2019 13,101 5,681 1,214 19,996
Loss after tax and total comprehensive
income - - (67) (67)
Equity settled share based
payments - - 131 131
Dividend payment - - (58) (58)
------------- -------------- --------------- --------------
30 September 2019 13,101 5,681 1,220 20,002
-------------- -------------- -------------- --------------
Issue of shares 325 325 - 650
Cost of share issue - (5) - (5)
Loss after tax, adjustments
and total comprehensive income - - (5,341) (5,341)
Equity settled share based
payments - - 98 98
-------------- -------------- -------------- --------------
31 March 2020 13,426 6,001 (4,023) 15,404
-------------- -------------- -------------- --------------
Loss after tax and total comprehensive
income - - (429) (429)
Equity settled share based
payments - - 13 13
-------------- -------------- -------------- --------------
30 September 2020 13,426 6,001 (4,439) 14,988
-------------- -------------- -------------- --------------
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 SEPTEMBER 2020
Unaudited Unaudited
6 months ended 6 months ended
30 September 2020 30 September 2019
GBP'000 GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Loss before tax
Adjustments for: (416) (132)
Share based payments 13 131
Depreciation on fixed assets 233 272
Amortisation of intangible assets 93 483
Impairment - 133
Restructuring reserve 1,200 -
Net finance costs 115 119
----------------- -----------------
Cash flows from operating
activities
before changes 1,238 1,006
in working capital
Increase in trade and other
receivables (2,328) (1,384)
Increase in trade and other
payables 1,875 1,386
----------------- -----------------
Cash used in operations 785 1,008
Investing activities
Purchase of fixed assets (101) (856)
Purchase of intangible assets (762) (2,661)
Payments due regarding purchase
of clients lists 505 1,622
Deferred consideration payments (687) (520)
----------------- -----------------
Net cash generated from investing
activities (1,045) (2,415)
Financing activities
Finance costs (115) (119)
New loans 2,130 -
Leases (135) 676
Loan repayments (62) (230)
Dividend payment - (58)
----------------- -----------------
Net cash from financing
activities 1,818 269
----------------- -----------------
Net increase/(decrease) in cash
and cash equivalents 1,558 (1,138)
Cash and cash equivalents at
beginning
of the period 2,416 3,116
------------------ ------------------
Cash and cash equivalents at end
of the period 3,974 1,978
========= =========
TAVISTOCK INVESTMENTS PLC
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 SEPTEMBER 2020
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 European Union.
The accounts have been prepared in accordance with accounting policies that are consistent with the March 2020 Report and Accounts and that are expected to be applied in the Report and Accounts of the year ended 31 March 2021.
This report is not prepared in accordance with IAS 34, which is not mandatory. 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 2020 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:
Unaudited Unaudited
Investment Advisory 30 September 30 September
Management Support 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 2,704 10,676 13,380 14,311
Cost of Sales (216) (7,444) (7,660) (8,500)
Administrative Expenses (804) (3,034) (3,838) (4,674)
Group costs (2,183) (1,150)
------------- -------------
Loss from operations (301) (13)
====== ======
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 PER SHARE Unaudited Unaudited
6 months ended 6 months ended
30 September 30 September
2020 2019
Loss per share has been calculated using
the following:
Loss from continuing operations (GBP'000) (416) (78)
Weighted average number of shares ('000s) 607,796 575,296
-------------- --------------
Basic loss per ordinary share (0.07)p (0.01)p
======= =======
4. INTANGIBLE ASSETS Regulatory Goodwill Internally
Client Approvals Arising Developed
on
Lists & Systems Consolidation Assets Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
Balance at 1 April
2020
(Audited) 8,408 1,815 14,751 2,249 27,223
Additions 505 - - 257 762
------------- ------------- ------------- ------------ ---------------
Balance at 30
September
2020 8,913 1,815 14,751 2,506 27,985
(Unaudited) ------------- ------------- ------------ ------------ ---------------
Accumulated
amortisation
Balance at 1 April
2020
(Audited) 7,039 1,815 235 1,227 10,316
Amortisation 91 - - 2 93
------------ ------------ ----------- ------------ ---------------
Balance at 30
September
2020 7,130 1,815 235 1,229 10,409
(Unaudited) ----------- ----------- ------------ ------------ ---------------
Net Book Value
At 1 April 2020
(Audited) 1,369 - 14,516 1,022 16,907
====== ====== ====== ====== =======
At 30 September 2020 1,783 - 14,516 1,277 17,576
(Unaudited) ====== ====== ====== ====== =======
5. SHARE CAPITAL Unaudited Audited
30 September 31 March
2020 2020
GBP'000 GBP'000
Called up share capital
Allotted, called up and fully paid
607,795,801 Ordinary shares of 1 pence
each 6,078 6,078
30,450,078 Deferred shares of 9 pence
each 2,741 2,741
465,344,739 Deferred "A" shares of 0.99
pence each 4,607 4,607
------------ ------------
13,426 13,426
====== ======
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
IR BKLFBBFLXFBB
(END) Dow Jones Newswires
November 10, 2020 02:00 ET (07:00 GMT)
1 Year Tavistock Investments Chart |
1 Month Tavistock Investments Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
