RNS Number : 2089X
Tavistock Investments PLC
19 December 2023
 

 

Tavistock Investments Plc

("Tavistock" or the "Company")

 

 Interim results

 

19 December 2023

 

Tavistock announces its unaudited interim results for the six months ended 30 September 2023.

Ongoing advisory business highlights:

·    Trading in first half of current financial year significantly ahead of equivalent period last year.

 

·    Revenue up 19% compared to same period last year to £20.6 million (H1 2022: £17.3 million).

 

·    Gross profit up 34% to £7.7 million (H1 2022: £5.8 million).

 

·    Adjusted EBITDA up twelvefold to £1.7 million (H1 2022: £0.14 million).

 

·    Reported profit from operations up 294% to £0.9 million (H1 2022: loss £0.5 million).

 

·    An interim dividend (announced on 5 October 2023) of 0.07p per share paid on 15 December 2023 (matching dividend paid in July 2022).

Brian Raven, Tavistock's Chief Executive, said: "I am pleased with the Company's strong growth during the first half of this financial year and the successful integration and rebranding of Precise Protect, now Tavistock Protect, which is set to be a major contributor to future profitability of the Group. The Company's cash resources have been bolstered recently by receipt of the second of three deferred consideration payments from Titan Wealth."

 

 

  For further information:

 

Tavistock Investments Plc


Oliver Cooke

Tel: 01753 867000

Brian Raven

 


Allenby Capital Limited

(Nominated adviser and broker)

Corporate Finance:

Nick Naylor, Liz Kirchner, Daniel Dearden-Williams

Sales and Corporate Broking:

Tony Quirke

 

Tel: 020 3328 5656

Powerscourt

Gilly Lock

Roxane Girard

 

 

Tel: 07711 380 007

       020 7250 1446

 


TAVISTOCK INVESTMENTS PLC

CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

I am pleased to advise that trading in the first half of the current financial year is significantly ahead of the equivalent period in the previous financial year.

The Company's unaudited interim accounts for the six-month period to 30 September 2023 show that gross revenues have increased by 19% to £20.6 million (prior year equivalent period: £17.3 million), gross margin has increased by 34% to £7.7 million (prior year: £5.8 million), reported profit from operations has increased by 294% to £0.9 million (prior year: loss £0.5 million) and EBITDA (earnings before interest taxation depreciation and amortisation) has risen twelvefold to £1.7 million (prior year: EBITDA £147k).

The Company announced the acquisition of Precise Protect Ltd in April 2023 and it has since been rebranded Tavistock Protect Limited ("Tavistock Protect"). Tavistock Protect is a profitable and fast-growing UK wide protection business based in Bangor, Northern Ireland. The Board believes that it will be a major contributor to the future profitability of the Group and is pleased to report that it has been successfully integrated into the Group.

Tavistock now has a network of over 400 advisers and other business introducers working with more than 110,000 UK clients, whose assets are estimated to exceed £5.7 billion in value, as well as 350 corporate and affinity clients with some 16,000 employees. The Company is thus well placed to pursue its ambitious growth plans.

The Company has implemented the new Consumer Duty regime and has completed its review of all British Steel Defined Benefit Pension Transfer cases with minimal uninsured cost being incurred.

Financial performance during the period

The table below compares the Company's performance during the period under review with the equivalent period during the last financial year.

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 trading performance.

 

RESULTS FROM ONGOING ACTIVITIES

 

6Months ended

6 Months ended

Movement

30 Sept '23

30 Sept '22

£'000s

£'000s

Revenues

20,560

17,334

19% increase

Adjusted EBITDA

1,724

147

1,073% improvement

Depreciation & Amortisation

(693)

(497)

39% increase

Share based payments

(116)

(120)

3% decrease

Regulatory provisions

(49)

-


Reported Profit/(Loss) from Operations

915

(470)


Earnings/(Loss) per ordinary share

0.04p

(0.14)p



As at 30 Sept '23

As at 31 Mar '23



£'000s

£'000s


Net assets at Interim end

40,691

41,771

3% decrease

Cash resources at Interim end

2,596*

9,733

73% decrease

 

*After the period end, the Company received the second of three deferred consideration payments from Titan Wealth Services Limited which increased the Group's cash resources by c.£5 million.

Dividends

On 15 December 2023 the Company paid an interim dividend of 0.07p per share, which matches the dividend that was paid in July 2022.

LEBC

In November 2023, LEBC (in which Tavistock has a minority shareholding) announced that it had sold (subject to regulatory approval) its wholly owned subsidiary, Aspira Corporate Solutions Limited, to Titan Wealth Services Limited ("Titan") for an initial cash consideration of £20 million together with an additional deferred consideration of up to £25 million payable over the next three years. Payment of the deferred consideration is linked to Aspira's performance under Titan's ownership. Prior to the year end, the Board will give due consideration to the likely ultimate value of this transaction (after the impact of redress payments to be made in relation to poor past pension transfer advice) and review the carrying value of the Company's investment in LEBC.

Prospects

The Board's focus continues to be on optimising the Group's structure, generating the funding required for growth and maximising shareholder value.

I look forward to updating shareholders in due course.

 

Oliver Cooke

Chairman

18 December 2023

 

TAVISTOCK INVESTMENTS PLC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

 


 

Unaudited

Unaudited


 

6 months ended

6 months ended


 

30 September

30 September


 

2023

2022


Note

£'000

£'000

 


 

 

Revenue

2

20,560

17,334





Cost of sales

2

(12,827)

(11,577)



------------

------------

Gross profit


7,733

5,757





Administrative expenses

2

(6,818)

(6,227)



--------------

--------------

Profit/(Loss) from Total Operations


915

(470)





Adjusted EBITDA


 1,773

 147

Depreciation & Amortisation


 (693)

 (497)

Share Based Payment


(116)

(120)

Regulatory provisions


(49)

-



--------------

--------------

Profit/(Loss) from Operations


915

(470)









Finance costs


(131)

(58)

LLP members remuneration charged as an expense


(572)

(277)

Share of profit/(loss) in associate


28

(58)



------------

------------

Profit/(Loss) before taxation


240

(863)





Taxation


-

-

 


------------

------------

Profit/(Loss) after taxation


240

(863)

 




 


------------

------------

Profit/(Loss) after taxation and attributable to equity holders of the Parent and total comprehensive income for the period

 

 

 

240

 

(863)



======

======

Earnings/(Loss) per share




Basic

3

0.04p

(0.15)p



======

======





Diluted

3

0.04p

(0.13)p



======

======

 

TAVISTOCK INVESTMENTS PLC                                                                                               

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

 


 

Unaudited

Audited


 

30 September 2023

31 March 2023


Note

£'000

£'000

£'000

£'000

ASSETS

 

 

 

 

 

Non-current assets

 

 

 

 

 

Tangible fixed assets

 

1,789

 

1,971

 

Intangible assets

4

23,194

 

19,560

 

Investments in associates

5

10,092

 

10,035

 

Trade and other receivables

 

8,742

 

8,740

 

 

 

-----------------

 

-----------------

 

Total non-current assets

 

 

43,817

 

40,306

 

 

 

 

 

 

Current assets

 

 

 

 

 

Trade and other receivables



12,940


10,473

Cash and cash equivalents



2,596


9,733




-----------------


-----------------

Total current assets

 

 

15,536

 

20,206

 

 

 

 

 

 




-----------------


-----------------

Total assets



59,353

 

60,512

 



 


 

LIABILITIES












Current liabilities



(8,144)

 

(10,726)




 


 

Non-current liabilities






Loan & Lease liability



(2,733)


(999)

Payments due regarding purchase of client lists



(903)


(923)

Provisions



(6,792)


(6,004)

Deferred taxation



(89)


(89)




------------------


------------------

Total liabilities



(18,661)

 

(18,741)

 



------------------

 

------------------

Total net assets



40,692

 

41,771




=========


=========

Capital and reserves






Share Capital

6


5,604


5,567

Share Premium

6


1,828


1,614

Capital Redemption Reserve

6


534


534

Retained Earnings



32,726


34,056




------------------


------------------

Total equity



40,692

 

41,771




=========


=========

 

The unaudited interim condensed consolidated financial statements were approved by the Board and authorised for issue on

18 December 2023.

Oliver Cooke

Chairman

 

TAVISTOCK INVESTMENTS PLC                                                                                                                        

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

 


Share Capital

Share Premium

Capital Redemption Reserve

Retained Earnings

Total Equity


£'000

£'000

£'000

£'000

£'000

 






31 March 2022

5,578

1,541

501

35,856

43,477

Loss after tax and total comprehensive income

-

-

-

(1,395)

(1,395)

Equity settled share based payments

-

-

-

107

107

Buy back of shares

(33)

73

33

(302)

(230)

Dividend received

-

-

-

373

373

Closure of subsidiary

-

-

-

(192)

(192)

Dividend payment

-

-

-

(391)

(391)

Share options exercised

22

-

-

-

22


-------------

--------------

-------------

---------------

--------------

31 March 2023

5,567

1,614

534

34,056

41,771


--------------

--------------

-------------

--------------

--------------

Profit after tax and total comprehensive income

-

-

-

240

240

Equity settled share based payments

-

-

-

116

116

Disposal/Closure of subsidiary

-

-

-

(102)

(102)

Issue of shares

37

214

-

-

249

Acquisition of Tavistock Protect Limited

-

-

-

(1,584)

(1,584)


--------------

--------------

--------------

--------------

--------------

Unaudited 30 September 2023

5,604

1,828

534

32,726

40,692


--------------

--------------

-------------

--------------

--------------

 

TAVISTOCK INVESTMENTS PLC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

 


 

Unaudited

 

Audited


 

Period ended
30 September 2023

 

Period ended                  31 March 2023


 

£'000

 

£'000

Cash flows from operating activities

 

 

 

 

Profit/(loss) from Operations


240


(1,568)

Adjustments for:





Share based payments


116


107

Depreciation on tangible fixed assets


308


681

Amortisation of intangible assets


385


563

Regulatory provisions


49


(342)

Exceptional costs/income


-


69

Finance costs


131


(139)

Minority interest in LEBC


(28)


-



-----------------


-----------------

Cash flows generated from/(used in) operating activities


1,201

 

(629)

before changes in working capital





 





(Increase)/decrease in trade and other receivables


(1,533)


111

Decrease in trade and other creditors


(2,054)


(1,274)

 


-----------------


-----------------

Cash used in Operations


(2,386)

 

(1,792)

 





Investing activities


 


 

Intangible assets - client lists and internally developed assets


(643)


(732)

Purchase of tangible fixed assets


(157)


(1,176)

Purchase of associate


(4,000)


(6,060)

Deferred consideration payments


237


(1,621)

Cash received on sale of client list


 -


100

Cash paid for subsidiary


-


(1,515)

Cash received on sale of subsidiary entities


-


7,461

Cash included on purchase of subsidiary


416


-

Purchase of subsidiary


(3,127)


-

                                              


-----------------

 

-----------------

Net cashflow used in investing activities


(7,274)


(3,543)

 


 

 

 

Financing activities





Finance (costs)/income


(131)


139

New leases


55


698

Lease repayment


(201)


(445)

New loans


3,000


-

Loan repayments


(200)


-

Buy-back of shares


-


(302)

Dividend payment


-


(391)

Exercise of share options


-

 

95



-----------------


-----------------

Net cashflow generated from/(used in) financing activities


2,523


(206)



-----------------


-----------------

Net change in cash and cash equivalents


(7,137)

 

(5,541)

 


 

 

 

Cash and cash equivalents at start of period


9,733

 

15,274

 


------------------

 

------------------

Cash and cash equivalents at end of period


2,596

 

9,733

 


=========

 

=========

 

TAVISTOCK INVESTMENTS PLC

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

 

1.         ACCOUNTING POLICIES

Basis of preparation         

The Consolidated Financial Statements have been prepared in accordance with UK adopted International Financial Reporting Standards ("IFRS") in conformity with the requirements of the Companies Act 2006.

The Financial Statements are presented in pound sterling and all values are rounded to the nearest thousandth (£'000), except when otherwise indicated.

The accounts have been prepared in accordance with accounting policies that are consistent with the March 2023 Report and Accounts and that are expected to be applied in the Report and Accounts of the year ending 31 March 2024.

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 2023 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

(Plc)

Investment Management

Advisory

Business

Unaudited Period ended 30 September 2023

Unaudited Period ended 30 September 2022


£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Revenue

160

347

20,053

20,560

17,334





 

 

Cost of sales

(611)

(210)

(12,006)

(12,827)

(11,577)


-------------

-------------

-------------

-------------

-------------

Gross profit

(451)

137

8,047

7,733

5,757


-------------

-------------

-------------

-------------

-------------

Attributed Expenses

(2,289)

(206)

(4,158)

(6,653)

(6,107)





 





 

Other Administrative expenses



 

 

Share based payments




(116)

(120)

Regulatory provisions



(49)

-

 




-------------

-------------

Profit/(Loss) from operations


915

(470)

 




======

======

 

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 2023

30 September 2022


Earnings/(Loss) per share has been calculated using the following:




Profit/(Loss) after taxation (£'000)

240

                       (863)


Weighted average number of shares ('000s)

560,213

                  557,443



                                       --------------

                                       --------------


Earnings/(Loss) per ordinary share

                    0.04p

                    (0.15)p



                                         ======

                                         ======






Weighted average number of shares and share options

                  78,440

80,796


that were exercisable at period end ('000s)

                                       --------------

                                       --------------


Diluted  Earnings/(Loss) per ordinary share

                    0.04p       

                    (0.13)p       



                                         ======

                                         ======


 

4.

INTANGIBLE ASSETS

 

Goodwill

Internally

 

 

 

Client

Arising on

Developed

 

 

 

Lists

Consolidation

Assets

Total



£'000

£'000

£'000

£'000


Cost






Balance at 1 April 2023 (Audited)

13,009

12,835

3,396

29,240


Additions

504

3,426

231

4,161


Revaluation

(143)

-

-

(143)



-------------

                   -------------

------------

---------------


Balance at 30 September 2023 (Unaudited)

13,370

16,261

3,627

33,258



-------------

                     ------------

------------

---------------


 






Accumulated amortisation






Balance at 1 April 2023 (Audited)

8,144

235

1,301

9,680


Amortisation

299

-

86

385



------------

                      -----------

------------

---------------


Balance at 30 September 2023 (Unaudited)

8,443

235

1,387

10,065



-----------

                    ------------

------------

---------------


 






Net Book Value







------------

------------

------------

------------


At 30 September 2023 (Unaudited)

4,927

16,026

2,240

23,193



======

                   ======

======

=======


At 31 March 2023 (Audited)

4,865

12,600

2,095

19,560



======

                  ======

======

=======

 

 

 

 

5.

INVESTMENTS IN ASSOCIATES

 

 

 

 

 

Investments in Associates


Investments in Associates

 

£'000


 




Cost




Balance at 1 April 2023 (Audited)


10,035


Additions


57




------------


Balance at 30 September 2023 (Unaudited)


10,092




======






Net Book Value




At 30 September 2023 (Unaudited)

 

10,092




======


At 1 April 2023 (Audited)


10,035




======



 

 





 

 

6.

SHARE CAPITAL   

Unaudited

Audited

 

 

30 September 2023

31 March

2023



£'000

£'000


Called up share capital








Allotted, called up and fully paid




560,429,005 Ordinary shares of 1 pence each

5,602

5,567


(31 March 2023: 556,857,576)

 




Capital Redemption Reserve

534

534



======

======



6,136

6,101






Share Premium

1,828

1,614



------------

------------



7,964

7,715



======

======

 

 

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