Financial Planning group Tavistock is to acquire the ‘bionic’ personal financial app business LEBC Hummingbird from retirement adviser LEBC Group for £3m.

Hummingbird was launched in 2019 with the aim of helping individual investors save and budget via an app.

It is an unregulated business that allows users to track their savings and investments on an app and then seek regulated advice from LEBC advisers, if they need it, via a link on the app.

It is a hybrid advice style-app developed in conjunction with Moneyhub.

Hummingbird users can see information on their savings, investments, pensions and ISAs via the 'bionic' app - as LEBC called it when it was launched in 2019.

As part of the deal, Tavistock will acquire the entire issued share capital of LEBC Hummingbird Limited.

Tavistock said Hummingbird also helped investors match their investment solutions with differing risk profiles through the use of "attitude to risk" questionnaires completed by clients.

Subject to regulatory approval, Tavistock will acquire Hummingbird from LEBC Group for £3m in cash, £1.5m on completion of the deal and £1.5m in November.

Hummingbird began trading in 2020 as a provider of financial research for the LEBC Group. Its audited accounts for the financial year ended 30 September 2021 showed that the company achieved gross revenues of £0.61 million and pre-tax profit of £0.43 million. It had gross assets of £0.13 million as at 30 September 2021.

Earlier this year, Tavistock Investments acquired a 21% stake in LEBC from the founder's widow for £10m. LEBC has struggled since the unexpected death of its CEO and founder, Chartered Financial Planner Jack McVitie, 57, in 2020 after a short illness. LEBC reported a loss last year of £232,000. Tavistock acquired the 21% stake from Marie McVitie, the widow of Mr McVitie. 

Tavistock joined private equity investor BP Marsh & Partners in being a significant shareholder in LEBC. With BP Marsh owning 60% of LEBC, together the two investors own over 80% of the business.

Derek Miles, LEBC's managing director, said: "Hummingbird's revenues and EBITDA have grown rapidly, and we are excited about our future prospects. We look forward to continuing to work closely with Tavistock's management team to enhance both businesses."

Brian Raven, Tavistock's chief executive, said: "We are pleased to welcome Hummingbird into the Tavistock Investments Group and look forward to working with Derek and his team as we extend our commercial partnership."