Wealth manager and Financial Planner Tavistock Investments has posted a £1.23m profit for the year ending 31 March, in contrast to the £5.5m loss the previous year.

EBITDA, generally seen as an indication of profitability, for the overall business increased 58% to £2.88m (year ended 31 March 2020: £1.83m).

The firm’s advisory arm saw a 508% increase in EBITDA to £2.28m (2020: £375,000).

Tavistock Wealth saw a 7% increase in revenue to £5.9m (2020: £5.5m).

Tavistock Private Client Limited, The Tavistock Partnership and Tavistock Partners Limited all contributed positive earnings.

Funds under management increased for the seventh consecutive year, rising 15% to £1.15bn (2020: £1bn).

The wealth manager and Financial Planner said it will issue an interim dividend of 0.05p per share, five times larger than the 2019 maiden dividend of 0.01p per share.

Tavistock Investments includes an advisory network, mostly focused on Financial Planning, a Centralised Investment Proposition and a small Direct to Consumer arm which uses an app.

The firm also posted unaudited Q1 revenues for the current financial year of £6.9m, a rise of 28% (Q1 2020: £5.4m).

Earlier this year Tavistock rejected an ‘unwelcome’ takeover bid from a Jersey-based investment firm called TEAM, which was believed to have some backing from ex-employees.

In June the firm announced that it has acquired Cambridge-based IFA Chater Allan Financial Services.  The acquisition of Chater Allan Financial Services added £110m to the group’s funds under advice and the firm said it is planning to make further acquisitions this year with its financial results stating the “development of a much larger group via an accelerated acquisition programme” as a key objective for the firm.  

The wealth manager and Financial Planner completed the sale of its multi asset arm, Tavistock Wealth Limited (TWL), to Titan Wealth Holdings last week. 

TWL will now be renamed as Titan Asset Management, with John Leiper continuing in his role as chief investment officer.

In June Tavistock Investments announced a 10-year strategic partnership with Titan with Titan acquiring TWL for up to £40m in cash, together with a ten-year earn out.

Tavistock's shareholders gave their approval for the transaction on 23 July 2021. The Financial Conduct Authority granted change in control approval on 9 August 2021.

Titan Wealth is a new investment firm co-founded recently by Andrew Fearon, a key figure at rapidly growing Financial Planning group Independent Wealth Planners (IWP).

Mr Fearon is a founder shareholder and director of IWP where he is responsible for M&A.

Under the terms of the deal, Tavistock will act as Titan’s “retail distribution partner.” Tavistock says it hopes the partnership will enable it to expand its wealth management faster, both organically and through acquisitions.

Titan acquired Tavistock Wealth for up to £40m with £20m paid on completion of the deal, and a further £20m paid in equal annual instalments over the following 3 years, linked to the maintenance of Tavistock Wealth's revenues.

In its financial results released this morning, the firm said it plans to use the initial £20m share proceeds to make strategic buy backs of shares, up to a maximum equivalent to 10% of shares in issue. Any shares purchased will be cancelled in order to enhance the earnings and value of the remaining shares.

Brian Raven, group chief executive at Tavistock Investements, said: “Our future prospects have been transformed by continued strong financial performance and entry into the strategic partnership with Titan Wealth. The sale of Tavistock Wealth to Titan for up to £40 million in cash plus a ten-year earn-out vindicates our belief that the value we have built within the business remains largely unrecognised. The transaction proceeds equip us to accelerate the growth of the business, developing a much larger and more profitable distribution and wealth management group, to deliver enhanced value to shareholders.”