Tavistock Investments PLC Disposal of Tavistock Financial Limited (5750N)
August 10 2017 - 1:00AM
UK Regulatory
TIDMTAVI
RNS Number : 5750N
Tavistock Investments PLC
10 August 2017
10 August 2017
TAVISTOCK INVESTMENTS PLC
DISPOSAL OF TAVISTOCK FINANCIAL LIMITED
Tavistock Investments Plc ("Tavistock" or "Company") today
announces that it has entered into an agreement for the sale of the
whole of the issued share capital of Tavistock Financial Limited
("Tavistock Financial") to Sanlam UK, part of Sanlam Limited.
Completion is subject only to change in control approval being
granted by the FCA, which is anticipated in the near future.
The transaction will see Sanlam UK acquire Cheltenham-based
Tavistock Financial's network of 158 financial advisers along with
25 support staff, for a total cash consideration of GBP1 million
payable in full on completion, which will be used by the Group for
working capital purposes. As a consequence of the transaction, the
Group's cash resources will be strengthened and simultaneously its
regulatory capital requirement will be reduced. The Board currently
anticipates that despite a reduction in the reported level of gross
revenues, there will be no material impact on the flow of funds
into the Group's centralised investment proposition or on the
future profitability of the Group.
It is estimated that in the year ended 31 March 2017 the
business of Tavistock Financial, as comprised at Completion, would
have reported gross revenues of approximately GBP13.4m with
attendant costs of sales of GBP12m, and contributed EBITDA of some
GBP109k. The regulatory capital requirement of the business on a
stand-alone basis would have been in excess of GBP500k.
Commenting on the acquisition, Sanlam UK Chief Executive,
Jonathan Polin said:
"We are very pleased to welcome Tavistock Financial's network of
high quality advisers to Sanlam. Earlier this year I announced the
launch of Sanlam Partners, a way for adviser firms to leverage the
benefits of the wider Sanlam Group while retaining control of their
business. The initial response from advisers has been hugely
positive and today's acquisition allows us to accelerate this
concept, putting us in a strong position to bring on-board other
adviser firms. This is another significant milestone in our mission
to build a client-centric, advice-led and outcome-focussed business
and I look forward to working with our new colleagues to making it
a success."
Brian Raven, Chief Executive of Tavistock Investments Plc,
said:
"Our focus is on building closer relationships with our advisory
partner firms, rather than on operating a traditional network
business such as Tavistock Financial. We are now working with over
100 Registered Individuals and 40 Appointed Representative Firms,
all of whose businesses we would be pleased to acquire. Therefore,
the Tavistock Financial business no longer fits with our strategy.
However, in disposing of that company, it was very important to us
that the interests of the staff, the network members and their
underlying clients were protected. Sanlam UK has convinced us that
they are the right firm to take the business forward. We wish them
and our former colleagues and advisers all the best for the
future."
- ENDS-
For further information:
Tavistock Investments plc Tel: 01753 867000
Oliver Cooke, Chairman
Brian Raven, Group Chief Executive
Arden Partners Plc Tel: 020 3861 6625
William Vandyk
Allenby Capital Limited Tel: 020 3328 5656
Nick Naylor
Nick Athanas
Templars Communications Limited Tel: 020 3642 3140
Kitty Parry
Malika Shermatova
Notes to editors
About Tavistock Investments PLC
Tavistock Investments Plc is an AIM listed investment management
business that has successfully established its own distribution
through the strategic acquisition of five independent financial
advisory businesses. Key group companies are: Tavistock Wealth
which manages the Group's Acumen Funds and its Centralised
Investment Proposition (CIP), Tavistock Partners which provides
compliance, administration and accounting services to Partner
Advisers (RIs) and The Tavistock Partnership which provides similar
services to Adviser Firms (ARs). Tavistock has over 160 advisers in
the Group and in excess of GBP3 billion in assets under advice.
About Tavistock Financial Limited
Tavistock Financial Limited, a network of independent financial
advisers, was formed in July 2015, following the acquisition of
Standard Financial Group Ltd ("SFG") together with its two trading
subsidiaries, Financial Ltd ("FL") and Investments Ltd ("IL").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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