Tavistock Investments Experiences Major Earnings Decline
Tavistock Investments has reported a significant 62% decrease in earnings following the sale of two of its subsidiary companies to Saltus.
In the financial results for the six months ending September 30, the group recorded a loss of £989,000, a stark contrast compared to the £240,000 loss during the same period in 2023.
As the firm pivots towards enhancing its presence in the UK retail investment market, it has set its sights on additional acquisitions.
Sale of Subsidiaries
In October, Tavistock finalized the sale of Tavistock Partners Limited and Tavistock Estate Planning Services Limited for £37.75 million. Shortly thereafter, in November, the company announced that it had signed contracts to acquire Alpha Beta Partners Limited, a prominent asset management firm headquartered in London and Bath, overseeing £3 billion in assets.
This acquisition’s total payout is expected to be tied to Alpha Beta’s financial performance over the coming five years, with an initial payment of £6 million to be made upon completion and a maximum potential total capped at £18 million.
Financial Performance
According to the firm’s interim results, Tavistock’s adjusted EBITDA for the six months leading to September 30 was £670,000, down from £1.7 million in the previous year, reflecting the impact of the recent changes.
Brian Raven, the Chief Executive of Tavistock, expressed optimism, stating, “I am pleased with the significant progress we’ve made with the strategic refocusing of the group’s activities, enhancing our ability to deliver solutions in the UK retail investment market.”
He continued, “I expect that the non-advised provision of investment management services to clients of third-party advisory businesses and directly to the public will become a substantial part of Tavistock’s service proposition."
Future Endeavors
Raven highlighted that the company’s financial strategy is strengthened by its debt facility with the Bank of Ireland and its cash reserves following the disposal of their network of self-employed IFAs, positioning Tavistock for expansion. “We are currently engaged in active discussions with several potential acquisition targets,” he added.
The acquisition of Alpha Beta Partners is anticipated to play a central role in the firm’s renewed focus on asset management.
Dividend Announcement
Additionally, Tavistock has declared a dividend of 0.09p per share, scheduled for payment on January 16, representing a 29% increase compared to last year.
With ongoing discussions related to potential acquisitions, Tavistock Investments is charting a proactive course toward growth and repositioning within the investment landscape.
