TIDMTAVI
RNS Number : 7050V
Tavistock Investments PLC
11 April 2023
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
Tavistock Investments Plc
("Tavistock" or the "Company")
Acquisition of Precise Protect Limited
11 April 2023
Tavistock (AIM:TAVI) is pleased to announce that it has today
acquired the entire issued and to be issued share capital of
Precise Protect Limited, a profitable and fast growing insurance
and protection business based in Bangor, Northern Ireland (the
"Transaction"). Precise Protect is regulated by the Financial
Conduct Authority (the "FCA") and Tavistock has received change in
control consent for the Transaction from the FCA.
Background
As announced by the Company previously, the current financial
year is a period of transition for Tavistock as the Company focuses
on the continued development of its innovative commercial operating
model and replacement of the contribution from its investment
management business, which was sold to Titan Wealth Holdings
Limited in August 2021.
Key elements of Tavistock's innovative commercial operating
model include:
-- Automated adviser oversight and real-time risk management
-- Integrated technology facilitating data mining and business intelligence
-- The Tavistock Academy to augment recruitment and career development
-- Multiple sources of lead generation (including affinities,
distribution partners and client referrals)
-- A "Tell Me How" financial portal for corporate and affinity clients
-- Proven blueprint for successfully integrating acquisitions.
Acquisition of Precise Protect
Precise Protect has a network of over 200 advisers working with
more than 37,000 UK clients, with an average age of under 40.
Precise offers its clients a wide range of products (including life
and critical illness cover, private medical insurance, personal
injury and income protection), several of which were developed
in-house and are unique to the firm. In the year ended 31 October
2022, Precise Protect reported a profit before taxation of GBP1.45
million on turnover of GBP6.5 million and net assets of GBP1.23
million.
Following the Transaction, the Tavistock group will have more
than 400 advisers and other business introducers looking after over
110,000 private clients with estimated assets of over GBP5.0
billion, as well as 350 corporate and affinity clients with some
16,000 employees.
The total consideration for the Transaction (assuming the
achievement of all performance related earn-outs) will amount to up
to some GBP7.0 million. GBP250,000 of the consideration is to be
settled through the issue of 3,571,429 new ordinary shares of 1
penny each in the capital of Tavistock Investments Plc at an issue
price of 7p per share (the "Consideration Shares"), with the
balance being settled in cash from the Company's existing cash
resources and the Company drawing down from the acquisition debt
facility provided by the Bank of Ireland.
GBP2.75 million of the cash consideration is being paid now,
together with the issue of the Consideration Shares (conditional on
admission to trading on AIM). The balance of the cash
consideration, totalling up to some GBP4.0 million, is payable in
three subsequent annual instalments, the value of each being linked
to the future performance of the Precise Protect business.
Admission and total voting rights
An application has been submitted to the London Stock Exchange
for the Consideration Shares to be admitted to trading on AIM and
trading in the Consideration Shares is anticipated to commence at
7.00am on Thursday 13 April 2023 ("Admission").
Upon Admission, the Company's issued share capital will comprise
of 560,429,005 ordinary shares of 1 penny each, with one voting
right per share ("Ordinary Shares"). The Company does not hold any
ordinary shares in treasury and therefore the total number of
Ordinary Shares with voting rights in the Company is
560,429,005.
With effect from Admission, the above figure of 560,429,005 may
be used by shareholders as the denominator for the calculations by
which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of
the Company under the FCA's Disclosure Guidance and Transparency
Rules.
Key anticipated synergies
Precise Protect is the first significant acquisition in the next
phase of Tavistock's growth plan. Integration of Precise into the
Tavistock group will provide opportunities for operational cost
savings (e.g. software, systems and regulatory oversight). However,
the most significant benefit to Tavistock will be Precise Protect's
experienced and dedicated specialist team. Other key benefits
include:
-- 37,000+ clients providing financial advice leads for both
desk based and face-to-face advice teams
-- Upskilling mortgage and protection advisers to become IFAs through the Tavistock Academy.
Tony Close, Precise Protect's Managing Director, said : "Precise
Protect's revenues and EBITDA have grown rapidly and we remain
excited about its prospects. However, we are very pleased to be
joining the Tavistock group which will enable us to offer a much
wider range of services to our clients, as well as deliver a
development pathway for advisers and career development
opportunities for staff."
Brian Raven, Tavistock's Chief Executive, said ; "We are
delighted to welcome Tony and his team into the group and to add
Precise Protect's products to the wider group's service
proposition. We look forward to benefitting from numerous
synergies, including operational cost savings, increased
profitability and new business leads."
For further information:
Tavistock Investments Plc
Oliver Cooke
Brian Raven Tel: 01753 867000
Allenby Capital Limited Tel: 020 3328
(Nominated adviser and broker) 5656
Corporate Finance:
Nick Naylor, Nick Athanas, Daniel
Dearden-Williams
Sales and Corporate Broking:
Tony Quirke
Powerscourt
Gilly Lock Tel: 07711 380
007
Roxane Girard 020 7250 1446
About Tavistock Investments Plc
Tavistock Investments Plc is an AIM listed financial services
group which before the acquisition of Precise Protect had more than
200 advisers and other business introducers across the UK.
Tavistock has over 75,000 clients with more than GBP5 billon of
investments.
Tavistock's advisory business operates throughout the UK. The
Tavistock Partners network supports Registered Individuals
(self-employed IFAs), providing compliance, administration,
technology, training and accounting services. The Tavistock
Partnership is a network that does the same for Appointed
Representative firms. Tavistock Private Client provides wealth
management and financial planning to high-net-worth
individuals.
The Tavistock Platform, launched in 2020, provides a low-cost
platform service to the Group's advisory and investment
clients.
Tavistock Asset Management ("TAM") markets the Group's
centralised investment proposition, both the ACUMEN UCITS funds and
the Group's Model Portfolio Service ("MPS"). In June 2021 the
Company entered a ten-year strategic partnership with Titan Wealth
Holdings Limited ("Titan Wealth"). Tavistock acts as Titan Wealth's
retail distribution partner. TAM retains Titan Wealth as investment
manager for the MPS.
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END
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