TIDMTAVI
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 GBP20.6
million (H1 2022: GBP17.3 million).
-- Gross profit up 34% to GBP7.7 million (H1 2022: GBP5.8 million).
-- Adjusted EBITDA up twelvefold to GBP1.7 million (H1 2022: GBP0.14 million).
-- Reported profit from operations up 294% to GBP0.9 million (H1 2022: loss GBP0.5 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 Tel: 020 3328 5656
(Nominated adviser and broker)
Corporate Finance:
Nick Naylor, Liz Kirchner, Daniel Dearden-Williams
Sales and Corporate Broking:
Tony Quirke
Powerscourt
Gilly Lock Tel: 07711 380 007
Roxane Girard 020 7250 1446
TAVISTOCK INVESTMENTS PLC
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHSED 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 GBP20.6 million (prior year equivalent period: GBP17.3
million), gross margin has increased by 34% to GBP7.7 million
(prior year: GBP5.8 million), reported profit from operations has
increased by 294% to GBP0.9 million (prior year: loss GBP0.5
million) and EBITDA (earnings before interest taxation depreciation
and amortisation) has risen twelvefold to GBP1.7 million (prior
year: EBITDA GBP147k).
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 GBP5.7 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 6 Months Movement
ended ended
--------------------------------- -------------------
30 Sept 30 Sept
'23 '22
--------------------------------- -------------------
GBP'000s GBP'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 As at 31
Sept '23 Mar '23
---------- --------- -------------------
GBP'000s GBP'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.GBP5 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 GBP20 million together with an additional
deferred consideration of up to GBP25 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 MONTHSED 30 SEPTEMBER 2023
Unaudited Unaudited
6 months 6 months
ended ended
30 September 30 September
2023 2022
Note GBP'000 GBP'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 31 March 2023
2023
Note GBP'000 GBP'000 GBP'000 GBP'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 MONTHSED 30 SEPTEMBER 2023
Share Share Capital Retained Total
Capital Premium Redemption Earnings Equity
Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 MONTHSED 30 SEPTEMBER 2023
Unaudited Audited
Period Period
ended ended 31
30 September March 2023
2023
GBP'000 GBP'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 MONTHSED 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 (GBP'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 Investment Advisory Unaudited Unaudited
(Plc) Management Business Period ended Period ended
30 September 30 September
2023 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 Unaudited Unaudited
PER SHARE
6 months ended 6 months
ended
30 September 30 September
2023 2022
Earnings/(Loss)
per share has
been calculated
using the
following:
Profit/(Loss) after
taxation (GBP'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 Developed
on
Lists Consolidation Assets Total
GBP'000 GBP'000 GBP'000 GBP'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 GBP'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 31 March
2023 2023
GBP'000 GBP'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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IR BRBDDSDBDGXI
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