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EXCLUSIVE: Ascent Resources ask shareholders for ability to raise funds


Regulatory News


Correction to Interim Results

Thu, 8th Nov 2018 17:29


RNS Number : 8390G
Tavistock Investments PLC
08 November 2018

The announcement is further to the Interim Results released at 7a.m. this morning to correct the year in the right hand column of The Consolidated Statement of Comprehensive Income.

Tavistock Investments plc

("Tavistock", "Company" or "Group")

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

Financial highlights:

? 13% increase in gross revenue for the Group for this period to more than 14 million, compared to the same period last year (30 September 2017: 12.3 million)

? 276% increase in EBITDA to 516,000 (30 September 2017: 137,000)

? 19% increase in gross profit to 5,651,000 (30 September 2017: 4,733,000) Correc

? Anticipate completing a cost reduction exercise saving over 500,000 a year by December 2018

Operational highlights:

? Continued growth in funds under management (FUM) for the 16th consecutive quarter

? Total FUM reached 941 million, a 26% increase in FUM (up 196 million) over the last year and a 190% increase (617 million) since 30 September 2016

? Gross revenues for Tavistock Wealth at 2.4 million for the six-month period, compared with revenue of 3.6 million for the full year to 31 March 2018

? Average gross revenue increased by 16% to 0.51% of FUM value per annum (30 September 2017: 0.44%)

? Continued improvement of the profile and performance of the advisory business

? Total of 3.5 billion assets under advice

? Gross revenues for the Group's advisory businesses at 11.6 million, increasing by 7% (30 September 2017: 10.8 million)

? Product range enhancement

? Two new protected funds launched in May - ACUMEN Capital Protection Portfolio and the ACUMEN Income Protection Portfolio - protected by high watermark contractual guarantees from Morgan Stanley & Co International plc

? Increased qualified pipeline of overseas private banks and family offices which have expressed interest in investing in the protected funds

? New partnerships/ endorsements

? The creation of Tavistock Law, a specialised business, endorsed by the Law Society as its preferred provider of investment advice; Tavistock Law is the only financial advice business in the UK to have received such an endorsement.

Post-period highlights:

? Launching "i-stock", a D2C smartphone app next year, providing consumers with the ability to open both ISA and investment accounts to invest in a portfolio that benefits from a 90% contractual capital guarantee from one of the world's largest investment banks.

Brian Raven, Group Chief Executive, Tavistock Investments said: "We are delighted with the continued organic growth of both our investment management and financial advisory businesses, despite this period of economic uncertainty. Our outlook for growth remains positive, particularly given the early success of the new protected products and the endorsement by the Law Society. We believe that these results pave the way for greater momentum throughout 2019, with a predicted continuation of growth for the Tavistock Investments Group."

For further information:

Tavistock Investments plc Tel: 01753 867000

Oliver Cooke, Chairman

Brian Raven, Group Chief Executive

Arden Partners plc Tel: 020 7614 5900

Paul Shackleton

Allenby Capital Limited Tel: 020 3328 5656

Nick Naylor

Nick Athanas

Vested EMEA Tel: 020 3890 8122

Paul Andrieu

Sofia Romano

TAVISTOCK INVESTMENTS PLC

CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

I am pleased to report that good progress continues to be made with the development of the business; a number of key initiatives have begun to bear fruit and both the financial advisory, and the investment management sides of our business, have continued to grow organically.

Investment Management

The success of the investment management business is key to the profitability of the Group and I am pleased to report that the level of funds being managed on a discretionary basis ("FUM") has continued to rise for the 16th consecutive quarter, albeit at a somewhat slower pace in recent months when market falls have increased investor anxiety and also had an adverse impact on valuations. It is worthy of note that our disciplined approach to investment diversification and the judicious use of currency hedging has enabled our funds to fair better than many as markets fell. As shown in the table below, the level of FUM has risen by 26% (196 million) over the last year and by over 190% (617 million) since 30 September 2016.


30 Sept '18

m

30 Sept '17

m

30 Sept '16

m

FUM

941

745

324

Tavistock Wealth's current average gross revenue is 0.51% of FUM value per annum and during the six-month period it achieved revenue of 2.4 million. This compares favourably with revenue of 3.6 million for the full year to 31 March 2018.

Now that Tavistock Wealth has an established and successful track record, UK advisory firms outside the ownership of the Group have begun recommending our investment management services to their clients. Whilst still early days, 23 firms have signed terms to do so. To date they have introduced over 20 million of inflows. Discussions with many others are ongoing.

Industry recognition continues to improve, and Tavistock Wealth has been a finalist in four national awards so far in 2018, including Money Marketing's Best Investment Fund Group, Growth Investor's Wealth Manager of the Year and Moneyfacts Best Discretionary Fund Manager for which it was commended.

Key Initiatives

1 Protected Products

In May, the Company launched two new protected funds. These are keenly priced, offer the investor daily liquidity and are protected by contractual guarantees provided by Morgan Stanley & Co International plc, one of the world's largest investment companies. These are the ACUMEN Capital Protection Portfolio ("ACPP") and the ACUMEN Income-Protection Portfolio ("AIPP"). These funds provide high watermark capital guarantees to investors, ensuring that the value of the ACPP can never fall below 90% of its highest ever value, and the AIPP (which takes slightly more risk) below 85%. We believe these funds to be unique in the UK market. They have been universally well received, have been very positively reviewed by a recognised industry research analyst and have already attracted more than 65 million of inflows. The challenge now is to make these funds available to as wide an audience as possible both within the UK and offshore.

2 Law Society Endorsement

The launch of these protected funds has enabled us to progress with our plans to partner with large scale organisations capable of generating significant fund inflows. The first such partnership is with the Law Society, a 200-year old institution with some 197,000 members. After close consultation with the Law Society, Tavistock has established a specialised business - Tavistock Law - which has been formally endorsed by the Law Society as the preferred provider of investment advice to its members in the fields of Trusts and Court of Protection awards. The new protected products are ideally suited to the needs of Trustees and their beneficiaries. Tavistock Law is the only financial advice business in the UK to have received such an endorsement and we look forward to working closely with our colleagues in the legal profession for the benefit of their clients.

The development of other such partnerships is ongoing, and I look forward to updating you on further strategic alliances in my next report.

3 Smartphone App

Such is the positive response to the new protected products that we have decided to launch a direct to consumer initiative.

Tavistock Wealth will be launching a smartphone app, branded "i-stock". We believe that this will be the first direct to consumer offering providing the ability to open both ISA and investment accounts to invest in a portfolio that benefits from a 90% contractual capital guarantee from one of the world's largest investment banks.

Client accounts will be very low cost (possibly free of charge) without any administration, dealing, entry, exit or other charges applied.

The development of this service is well underway, and we are optimistic of achieving a launch in early 2019.

4 Offshore

Over the past months we have been developing a qualified pipeline of overseas private banks and family offices who have expressed interest in investing in our protected funds. Investment from these entities is anticipated to be on a larger scale than from entities within the UK. We have established a Luxembourg regulated fund structure in order to facilitate such overseas investment - a Reserved Alternative Investment Fund (RAIF). The Tavistock Fund SCA SICAV - RAIF currently has a single sub-fund, the Tavistock Guaranteed Portfolio. This will hold cash together with investments in the ACPP and AIPP referred to above, structured to guarantee the same high watermark 90% protection. The RAIF is in the process of being admitted to trading on the Luxembourg Stock Exchange. This will facilitate investment on a global basis via Euroclear, ClearStream and a number of other worldwide trading platforms.

The establishment of these various building blocks gives the Group's investment management business the potential to achieve accelerated and sustained growth.

Advisory

The performance of the Group's advisory businesses is another key area of focus and despite the time and additional resources absorbed as a consequence of the introduction of MiFID II, gross revenues grew by 7% from 10.8 million, in the six-month period to 30 September 2017, to 11.6 million this period.

The Group's advisory businesses now have approaching 200 individual advisors with some 3.5 billion of assets under advice.

Adviser recruitment has proved challenging across the UK market and this has necessitated a greater reliance on the use of external recruitment agencies with a consequent impact on the cost base during the period. However, I am pleased to report that our advisory businesses, and in particular our high net worth business, Tavistock Private Client, have managed to attract a number of promising additions to their teams and we look forward to their contribution being reflected in the future.

Financial Performance

During the period, the Group generated EBITDA of 516,000 on gross revenue of 14 million (six months to 30 September 2017, EBITDA of 137,000 on gross revenue of 12.4 million). Cash generated from operations was 130,000 (six months to 30 September 2017 cash absorbed by operations was (196,000)). The Company also settled 630,000 of deferred consideration obligations.

The Group's cost base grew during the period as the business continued to expand, and as investment was made in the initiatives referred to above. However, measures have now been taken to remove costs where appropriate and we anticipate completing a cost reduction exercise saving over 500,000 a year, by December 2018. At the end of the period, the Group had net assets of 18.7 million (30 September 2017 18.3 million) which included cash resources of 2.17 million (30 September 2017 2.74 million).

The Group's results for the period can be summarised as follows:


6 Months ended 30 Sept '18

'000s

6 Months ended

30 Sept '17

'000s

Movement

Gross Revenues

14,034

12,361

14% increase

Underlying EBITDA

516

297

74% increase

Reorganisation

-

(160)

-

Reported EBITDA

516

137

277% increase

Depreciation & Amortisation

(503)

(484)

4% increase

Share based payments

(200)

(134)

49% increase

Loss from operations

(187)

(481)

61% decrease

Exceptional income/(costs)

-

471

-

Reported Loss from Operations

(187)

(10)

-

Adjusted loss per share *

0.05p

0.1p*

50% decrease

Net Assets

18,672

18,307

2% increase

Cash at end period

2,170

2,744

21% decrease

* Excluding the exceptional gain of 471k reported in the 6 months ended 30 September 2017

Future Prospects

The Company has continued to make great strides with the development of its business and the long-term prospects remain excellent.

Considerable management time has been, and continues to be, committed to advancing the various initiatives described above and as these begin to yield results, we can look forward to reporting accelerating revenues and increased profitability.

On the strength of our continued performance and outlook, the Board currently plans to introduce a dividend stream for the benefit of the Company's shareholders at the year end.

I look forward to updating you on further progress.

Oliver Cooke

Chairman

8 November 2018

TAVISTOCK INVESTMENTS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018



Unaudited 6 months ended 30 September 2018

'000

Unaudited 6 months ended 30 September 2017

'000

Revenue - continuing operations

2

14,034

12,361

Cost of sales - continuing operations


(8,383)

(7,628)



------------

------------

Gross profit


5,651

4,733

Administrative expenses- continuing operations


(5,838)

(4,743)



--------------

--------------

Loss from operations


(187)

(10)





Memorandum:

Adjusted EBITDA


516

137

Depreciation & amortisation


(503)

(484)

Exceptional income


-

471

Share based payments


(200)

(134)



--------------

--------------

Loss from operations


(187)

(10)

Finance costs


(133)

(137)



------------

------------

Loss before taxation and attributable to equity holders of the parent

(320)

(147)

Taxation


62

61



------------

------------

Loss from continuing operations

Discontinued operations (net of tax)

Loss after taxation and attributable to equity holders of the parent and total comprehensive income for the period

(258)

-

------------

(258)

(86)

(21)

------------

(107)



====lt;/span>

====lt;/span>

Loss per share (continuing operations)




Basic

3

(0.05)p

(0.02)p



====lt;/span>

====lt;/span>

TAVISTOCK INVESTMENTS PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2018



Unaudited

Unaudited



30 September 2018

30 September 2017

ASSETS

'000

'000

'000

'000

Non-current assets

Fixed assets



532


534

Intangible assets

4


18,881


19,545




-----------------


-----------------

Total non-current assets

19,413

20,079

Current assets

Trade and other receivables


3,414


2,560


Cash and cash equivalents


2,170


2,744




-----------------


-----------------


Total current assets



5,584


5,304




-----------------


-----------------

Total assets



24,997


25,383







LIABILITIES






Current liabilities



(5,174)


(2,252)







Non-current liabilities






Other payables



(500)


(1,780)

Term loan



(361)


(2,219)

Provisions



-


(413)

Deferred taxation



(290)


(412)




------------------


------------------

Total liabilities



(6,325)


(7,076)




------------------


------------------

Total net assets



18,672


18,307




=======lt;/span>


=======lt;/span>

Capital and reserves attributable to owners






of the parent






Share capital

5


12,720


12,720

Share premium



4,882


27,882

Retained earnings/(deficit)



1,070


(22,295)




------------------


------------------

Total equity



18,672


18,307




=======lt;/span>


=======lt;/span>

The financial statements were approved by the Board and authorised for issue on 8 November 2018.

Oliver Cooke

Chairman

TAVISTOCK INVESTMENTS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018


Share capital

Share premium

Retained deficit

Total equity


'000

'000

'000

'000






31 March 2017

12,685

27,818

(22,322)

18,181






Issue of shares

35

64

-

99

Loss after tax and total comprehensive income

-

-

(107)

(107)

Equity settled share based payments

-

-

134

134


-------------

--------------

---------------

--------------

30 September 2017

12,720

27,882

(22,295)

18,307


--------------

--------------

--------------

--------------






Profit after tax, adjustments and total comprehensive income

-

-

422

422

Equity settled share based payments

-

-

1

1

Reduction of share premium*

-

(23,000)

23,000

-


--------------

--------------

--------------

--------------

31 March 2018

12,720

4,882

1,128

18,730


--------------

--------------

--------------

--------------






Loss after tax and total comprehensive income

-

-

(258)

(258)

Equity settled share based payments

-

-

200

200


--------------

--------------

--------------

--------------

30 September 2018

12,720

4,882

1,070

18,672


--------------

--------------

--------------

--------------

* On 27 February 2018, the Group reduced its share premium account by 23m by special resolution, resulting in a corresponding transfer of this balance to retained earnings.

TAVISTOCK INVESTMENTS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018



Unaudited

Unaudited



6 months ended

30 September 2018

6 months ended 30 September 2017



'000

'000

'000

'000

Cash flows from operating activities

Loss before tax (continuing and discontinued)

Adjustments for:



(320)


(168)

Share based payments



200


134

Depreciation on fixed assets



84


65

Amortisation of intangible assets



419


419

Net finance costs



133


137




-----------------


-----------------

Cash flows from operating activities before changes



516


587

in working capital












Increase in trade and other receivables



(143)


(613)

Decrease in trade and other payables



(243)


(170)




-----------------


-----------------

Cash used in operations



130


(196)







Investing activities






Purchase of fixed assets


(128)


(250)


Purchase of intangible assets


(194)


(10)


Payment of deferred consideration


(630)


(1,352)




-----------------


-----------------


Net cash generated from investing activities



(952)


(1,612)







Financing activities






Finance costs


(133)


(137)


New financing


14


281


Loan Repayments


-


(250)


Issue of new share capital (net of costs)


-


100




-----------------


-----------------


Net cash from financing activities



(119)


(6)




-----------------


-----------------

Net decrease in cash and cash equivalents



(941)


(1,814)







Cash and cash equivalents at beginning of the period



3,111


4,558




------------------


------------------

Cash and cash equivalents at end of the period



2,170


2,744




=======lt;/span>


=======lt;/span>

TAVISTOCK INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

1. ACCOUNTING POLICIES

Basis of preparation

The interim financial statements have been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) adopted by the European Union.

The accounts have been prepared in accordance with accounting policies that are consistent with the March 2018 Report and Accounts and that are expected to be applied in the Report and Accounts of the year ended 31 March 2019.


This report is not prepared in accordance with IAS 34, which is not mandatory. 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 2018 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:



Investment Management

Advisory

Support

2018

2017



'000

'000

'000

'000







Revenue


2,414

11,620

14,034

12,361







Cost of Sales


(111)

(8,272)

(8,383)

(7,628)







Administrative Expenses


(1,094)

(3,367)

(4,461)

(3,531)







Group costs




(1,377)

(1,212)





-------------

-------------

Loss from continuing operations




(187)

(10)







Loss from discontinuing operations




-

(21)





-------------

-------------

Loss from operations




(187)

(31)





====lt;/span>

====lt;/span>

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 balance sheet 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 PER SHARE

Unaudited

Unaudited



6 months ended

6 months ended



30 September 2018

30 September 2017


Loss per share has been calculated using the following:




Loss from continuing operations ('000)

(258)

(86)


Weighted average number of shares ('000s)

537,186

536,718



--------------

--------------


Basic loss per ordinary share

(0.05)p

(0.02)p

=====lt;/span>

=====lt;/span>

4.

INTANGIBLE ASSETS

Customer

Regulatory

Goodwill

Other




& Adviser

Approvals

Arising on

Intangible




Relationships

& Systems

Consolidation

Assets

Total



'000

'000

'000

'000

'000


Cost







Balance at 1 April 2018

5,415

1,815

14,751

480

22,461


Additions

103

-

-

91

194


Disposals

-

-

(30)

-

(30)



-------------

-------------

-------------

------------

---------------


Balance at 30 September 2018

5,518

1,815

14,721

571

22,625



-------------

-------------

------------

------------

---------------


Accumulated amortisation







Balance at 1 April 2018

2,221

788

205

111

3,325


Amortisation

247

108

-

64

419



------------

-----------

-----------

------------

---------------


Balance at 30 September 2018

2,468

896

205

175

3,744



-----------

------------

------------

------------

---------------


Net Book Value







At 31 March 2018

3,194

1,027

14,546

369

19,136



====lt;/span>

====lt;/span>

====lt;/span>

====lt;/span>

=====lt;/span>


At 30 September 2018

3,050

919

14,516

396

18,881



====lt;/span>

====lt;/span>

====lt;/span>

====lt;/span>

=====lt;/span>

5.

SHARE CAPITAL

Unaudited

Unaudited



30 September 2018

30 September 2017



'000

'000


Called up share capital








Allotted, called up and fully paid








537,186,045 Ordinary shares of 1 pence each

5,372

5,372






30,450,078 Deferred shares of 9 pence each

2,741

2,741






465,344,739 Deferred "A" shares of 0.99 pence each

4,607

4,607



------------

------------



12,720

12,720



====lt;/span>

====lt;/span>


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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