Tavistock adjusts strategy, acquires majority of Lifetime Financial Management

(Sharecast News) - Tavistock Investments announced a strategic overhaul of its business on Thursday, alongside the acquisition of a majority stake in Lifetime Financial Management, as it looked to target what it described as the "neglected 91%" of UK consumers lacking access to financial advice.

The AIM-traded firm said it was refocusing its operations to deliver affordable, human-led financial guidance to those underserved by traditional advisory models, citing rising regulatory costs, downward fee pressure and growing advice risks that had pushed many firms to shed lower-value clients.

It highlighted the FCA's 2024 Financial Lives Survey, which found only 9% of UK consumers received full financial advice and 59% struggled with financial matters.

Tavistock said it had acquired 76.59% of Lifetime's shares for an initial £3.7m in cash plus £2.25m earmarked for debt reduction and strategic incentives, with founder and chief executive Ian Dickinson retaining the remaining 23.41%.

The deal included additional performance-based payments over four years, capped at £9.9m for Tavistock's stake, and remained subject to FCA change of control approval.

Lifetime, which reported a pre-tax loss of £81,000 for the year ended 31 March, operates a hybrid advisory model combining technology and AI with human oversight and no income or wealth thresholds for clients.

Tavistock said that would enable it to deliver cost-effective services to a large pool of orphaned and lower-value clients, including more than 700,000 potential customers via its employee benefits arm.

"Our conviction is that everyone deserves financial peace of mind regardless of age or wealth," said chief executive Brian Raven.

"We believe this strategic move gives us a proven, hybrid model that breaks down traditional barriers to financial advice and wealth creation.

"It is the answer for the financial well-being of UK adults today and offers our shareholders an opportunity for significant incremental value."

Dickinson added that the company was "delighted" to be joining the Tavistock Group to pursue a common purpose to "provide everyone" with "professional and affordable financial advice" and low-cost investment solutions.

"Lifetime has been on an incredible journey for the last 23 years and we are excited to embark upon our next chapter in closing the advice gap," Dickinson said.

At 1115 BST, Tavistock Investments shares were down 4.33% at 5.5p.

Reporting by Josh White for Sharecast.com.

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