Tavistock Regulatory News (TAVI)

TAVISTOCK INVESTMENTS PLC

RESULTS FOR THE FIFTEEN MONTHS ENDED 31 MARCH 2015

25 AUGUST 2015

Tavistock Investment Plc ("the Company") today announces its financial results for the fifteen months ended March 2015.

The period under review was one of construction and the results include 15 months of overhead costs for the Group's holding company, Tavistock Investments, 10 months of trading for each of Tavistock Partners and Tavistock Wealth and 6 weeks of trading for Standard Financial Group, as well as certain associated transaction and fundraising costs.

Financial highlights:

· Total revenue of £5 million (FY13: £176,000 when the Company operated its now discontinued loss making software business)

· Post-tax loss of £864,000 (FY13: loss of £516,000)

· EBITDA loss of £364,000 (FY13: loss of £309,000)

· Net assets at March 2015 of £11.42 million, of which £4.74 million is cash (FY13 net assets: £238,000 including cash of £324,000)

· Additional equity capital of £3.35 million raised in February 2015

Operational highlights:

· Group established in May 2014 through simultaneous acquisitions of Tavistock Partners, an Independent Financial Advisory (IFA) business, and Tavistock Wealth, an investment management business

· Strategic commercial relationship with Novia Financial plc announced in September 2014; investment of £250,000 in shares and provision of a three year, unsecured, convertible loan facility of up to £750,000

· Launch of well-received discretionary fund management (DFM) service, which includes the provision of an extensive series of risk progressive model portfolios

· Acquisition of Standard Financial Group Ltd which increased geographic reach and operational scale in February 2015

· Acquisition of Cornerstone Asset Holdings Ltd. in March 2015

Post-period highlights:

· Acquisition of Duchy Independent Financial Advisers to increase presence in West Country

· Over 270 advisers, looking after approximately 65,000 clients with over £3 billion of assets under advice

Brian Raven, Tavistock Investment's Chief Executive, commented:

"We have made significant progress this year towards our ambition to become a large and profitable financial services group, by establishing a strong, national financial advisory and investment management business.

Over the coming year, our key focus will be on full integration of the firms we have acquired and ensuring the right infrastructure is in place to grow the Company profitably and rapidly.

We aim to deliver organic growth as well as continue to pursue selective acquisitions that meet our strategic criteria."

For further enquiries, please contact:

Tavistock Investments plc

Oliver Cooke, Chairman

Brian Raven, Chief Executive Tel: 01753 867 000

Northland Capital Partners Limited

William Vandyk / Matthew Johnson Tel: 020 7382 1100

WH Ireland Limited

Chris Fielding / Mark Leonard Tel: 020 7220 1660

Templars Communications Ltd

Kitty Parry Tel: 020 3642 3140

CHAIRMAN'S STATEMENT

I am pleased to present the Company's audited results for the fifteen month period to 31 March 2015 and to report that the Company has made significant progress on its journey towards its principal objective of becoming a large and profitable integrated financial services business.

Highlights:

On 30 May 2014 the foundations of an integrated financial services business were established through the simultaneous acquisitions of Tavistock Partners, formerly County Life and Pensions Ltd, an Independent Financial Advisory (IFA) business based in Kegworth in Derbyshire, and Tavistock Wealth, formerly Blacksquare Limited, an investment management business based in Windsor in Berkshire.

In September 2014 the Company entered into a strategic commercial relationship with Novia Financial plc. Novia is an established wrap platform operator with existing relationships with a high number of IFA firms. Under the terms of the strategic agreement, Tavistock Wealth has endorsed Novia as a preferred platform and Novia will introduce advisers to Tavistock on a selective basis. Tavistock Wealth will grant Novia supporting IFAs access to its services, usually only available to advisers that have joined Tavistock Partners.

As part of the arrangements, Novia and Cocoon Investment Holdings Limited (a substantial investor in Novia) invested a combined £250,000 in Tavistock shares and are providing the Company with a three year, unsecured, convertible loan facility of up to £750,000.

On 10 October 2014 it was announced that Tavistock Wealth had developed and launched a discretionary fund management (DFM) service, predominantly for use by clients of Tavistock Partners. The service includes the provision of an extensive series of risk progressive model portfolios many of which are managed in conjunction with a panel of third party specialists. The performance of these model portfolios has to date been good and the service has been well received by advisers and clients alike. From a standing start in October 2014, Tavistock Wealth now manages some £150 million on behalf of over 1,800 clients.

In February 2015 the Company increased both the geographic reach and the scale of its operations through the acquisition of Standard Financial Group Ltd, whose main subsidiary, Financial Ltd, operates an IFA network business from its base near Cheltenham in Gloucestershire. The Company also raised some £3.35 million of additional working capital through the issue of new ordinary shares.

In March 2015, the Company was able to bring ownership of various books of client relationships into Tavistock Partners through the acquisition of Cornerstone Asset Holdings Ltd.

In May 2015, after the end of the period under review, the Company announced the acquisition of Duchy Independent Financial Advisers Ltd, an IFA business with offices in Truro and in St Ives in Cornwall. It is intended that Duchy acts as a hub for further development of the Group's business in the West Country.

Financial Performance:

The period under review can be characterised as being one of construction and the results, which have been summarised below, include 15 months of overhead costs for the Group's holding company, Tavistock Investments, 10 months of trading for each of Tavistock Partners and Tavistock Wealth and 6 weeks of trading for Standard Financial Group as well as certain associated transaction and fundraising costs.

Tavistock Partners has traded profitably since its acquisition and as Tavistock Wealth's revenues have grown it is now close to trading profitably on a consistent basis. The historic drop in the number of members within Financial's network prior to its acquisition by the Group caused that business to be trading at a loss at the time of its acquisition. However, measures are now being taken to mitigate these losses and these are summarised in more detail in the Strategic Report. Duchy continues to trade profitably.

For the period under review the Group has reported total revenues of £4,999,000 (year ended 31 December 2013, at a time when it still operated its now discontinued loss making software business, £176,000) and EBITDA (earnings before interest, taxation, depreciation and amortisation) of £(364,000) (year ended 31 December 2013 £(309,000)). The reported loss before taxation was £(983,000) and £(864,000) after taxation (year ended 31 December 2013 £(516,000)). As at 31 March 2015 the Group had net assets of £11,424,000 of which £4,739,000 was represented by cash (31 December 2013 net assets £238,000 including cash of £324,000).

Current Status:

236 financial advisers from Financial Limited have now transferred to the newly established Tavistock Financial network. Together with the Tavistock Partners network, Duchy IFAs and new joiners, this means we now have over 270 advisers covering most regions of the UK, looking after some 65,000 clients with over £3 billion of assets under advice. Tavistock Wealth already manages £150 million and is making rapid progress. With some £4.74 million of available cash resources, the Group is also well placed to take advantage of the opportunities that it has to further develop the business.

Future Prospects:

In contrast to the period under review the current year can be characterised as one of establishment during which the Board will be focused on integrating the businesses that have been acquired and putting in place the infrastructure required for the Company to deliver attractive performance in the following year. It remains our objective to introduce and to manage a dividend stream for the benefit of the Company's shareholders at the earliest practical opportunity.

I would like to thank all of our staff for their hard work and their commitment during the period and I look forward to updating shareholders on our continued progress in the near future.

Oliver Cooke

Executive Chairman

24 August 2015

STRATEGIC REPORT

The Company's prime objective, to become a large and profitable integrated financial services business, remains unchanged.

During the period under review the Board's principal focus was on the creation of an integrated business, offering both financial advisory and investment management services to its clients, and on ensuring that both of these activities operate in concert.

Having achieved this, the Board's focus moved to securing the critical mass and establishing the infrastructure that would enable the Group to generate meaningful levels of profitability in future years. This will in turn enable the Board to deliver another of its objectives, namely the establishment and management of a dividend stream for the benefit of the Company's shareholders.

The Board currently has three main areas of focus, which in effect are the yardsticks by which its success can be measured.

These can be summarised as follows.

- the reorganisation of Standard Financial Group and the integration of the business of its principal subsidiary, Financial Ltd, into the Group,

- the adaptation and implementation of a new software system to automate significant elements of the advisory business and thereby to greatly enhance both productivity and compliance oversight, and

- to significantly increase the uptake of the Group's investment management services.

Reorganisation:

The Company has recently secured regulatory consent for one of its other subsidiary companies, Tavistock Financial Ltd, to operate an IFA network business and with the sanction of the Regulator, the Company has transferred the majority of the members of Financial's network the new Tavistock Financial network. Some members of Financial's network may in due course be invited to become appointed representatives of the Group's other advisory business, Tavistock Partners, where a retirement guarantee is made available to members. It is anticipated that in due course Financial Ltd will cease to provide network services and that the entity will then be closed down.

The establishment of the new network will enable the Company to achieve significant operational cost savings, most notably through a reduction in the level of the professional indemnity insurance premium and other regulatory fees.

Automation:

Contracts have been signed for the introduction of a new software system that will ultimately be used by all advisers wishing to operate under the Company's banner.

The new system will allow advisers to operate more cost effectively. It will also enable the Company to improve its monitoring of advisers' activity and to ensure that clients are consistently treated in a fair, professional and efficient manner.

Uptake of Investment Services:

Tavistock Partners' clients were first advised of the Company's new DFM service in August 2014. The service is competitively priced and offers wide choice. The vast majority of model portfolios have consistently outperformed comparable industry benchmarks. As a consequence it has been well received by advisers and clients alike.

The focus now is on increasing the target audience for the service and thereby increasing the level of assets managed by Tavistock Wealth.

This will be achieved primarily by making the service available for use where appropriate by the clients of those members who have joined the Tavistock Financial network. It is also intended to improve access to the service by making a number of the model portfolios available on a wider range of platforms.

Risks and Uncertainties:

The principal risk facing the business relates to the execution of the strategy outlined above.

There can be no absolute certainty that the planned cost savings will be delivered within the anticipated timescales, that the deployment of the new software system will go as planned or that the rapid pace at which the DFM service has been adopted to date will continue into the future. However, a great deal has been achieved by senior management in the short period of the Group's operational existence and the Board remains confident that rapid progress will continue.

The Company also faces the usual risks of operating within a regulated environment, but to mitigate these risks the Board actively promotes an ethos and culture in which the client is placed at the centre of everything that the Company does.

The Board considers that the Company has sufficient working capital for its current needs.

Future Prospects:

The Company has a number of significant growth opportunities and is well placed to take advantage of these. This is an exciting time for the Company and I look forward to reporting to you in the near future on the next milestones that your Company achieves.

Principal Activities, Review of the Business and Future Developments

The principal activities of the Group during the period were the provision of support services to a network of IFAs and the provision of investment management services. The key performance indicators recognised by management are gross revenues, IFA numbers and the level of clients' assets under advice or management by the Group.

An overall review of the Group's trading performance and future developments is given in the Chairman's Statement and in the Strategic Report. The Group is not unduly impacted by environmental matters and as a consequence does not offer comment on them.

Substantial shareholdings

The company has been advised of the following interests in more than 3% of its ordinary share capital as at 3 August 2015:

Directors

The Directors of the Company during the period were:

Executives:

Oliver Cooke

Brian Raven (appointed 12 May 2014)

Non Executives:

Roderic Rennison (appointed 12 May 2014)

Philip Young (appointed 12 May 2014)

Former Non Executives: Dominic Wheatley and William Astor resigned on 12 May 2014.

Oliver Cooke

Executive Chairman, aged 60

Oliver has over 35 years of financial and business development experience gained in a range of quoted and private companies including over fifteen years' experience as a public company director. He has considerable experience in the fields of strategic transformation, acquisitions, disposals and fundraisings. Oliver is a Chartered Accountant and a Fellow of the Association of Chartered Certified Accountants.

Brian Raven

Group Chief Executive, aged 59

Brian has been involved in the financial services sector since 2010. He has a wide range of business experience, having held many sales and general management posts at senior management and board level, including running public companies on both AIM and the Official List. Most notably, in 1991 Brian founded Card Clear Plc, subsequently renamed Retail Decisions plc, a business engaged in combating the fraudulent use of plastic payment cards. He led the company until 1998 by which time it was an international group, listed on AIM, with a market capitalisation of some £100 million. As a principal, Brian has been responsible for identifying, negotiating and integrating numerous acquisitions, as well as for delivering organic growth.

Roderic Rennison

Non-Executive Director, Chairman of Remuneration Committee, aged 60

Roderic has more than 40 years of experience in financial services encompassing a variety of roles including sales, strategy, product development, proposition, operations and latterly acquisitions, mergers, and integrations together with corporate affairs, risk and regulatory matters. He provides consultancy services in the sector to a range of providers, fund managers and intermediaries and particularly specialises on RDR, for which he chaired the professionalism and reputation work stream.

Philip Young

Non-Executive Director, Chairman of Audit Committee, aged 41

Philip began his career in 1996 at a small financial consultancy business specialising in complex regulatory issues, CCL, in Macclesfield. Philip moved to Bankhall Investment Associates Ltd in 1998, where he worked initially in the compliance area, then moved to become Commercial Manager for Bankhall's e-commerce department. In 2003 he co-founded threesixty services LLP and threesixty support LLP, with a number of colleagues, and became an equity partner. threesixty has grown to become one of the most significant forces in adviser support in the UK, providing professional business services to over 700 firms with more than 7000 advisers. threesixty was acquired by Standard Life Plc in 2010, after which Philip was appointed Managing Director and continues to run the business today.

Corporate Governance

The Board confirms that the Group has had regard, throughout the accounting period, to the provisions set out in the UK Corporate Governance Code which was issued by the Financial Reporting Council in May 2010 and updated in September 2014. Whilst not required to do so the Directors, as a matter of best practice, have voluntarily endeavoured to comply with those of the provisions which they consider to be relevant to a company of this size.

The Board of Directors

The Board currently comprises two executive Directors and two non-executive Directors.

The non-executive Directors have a strong compliance background and are considered to be independent. All Directors are required to stand for re-election at least once in every three years.

All members of the Board are equally responsible for the management and proper stewardship of the Group. The non-executive Directors are independent of management and free from any business or other relationship with the Company or Group and are thus able to bring independent judgment to issues brought before the Board.

The Board meets at least ten times per year and more frequently where necessary to approve specific decisions. Directors may take independent professional advice at the Company's expense.

The Audit Committee

The Audit Committee is comprised of the Chairman and the non-executive Directors and determines the terms of engagement of the Company's auditors and, in consultation with the auditors, the scope of the audit. The Audit Committee receives and reviews reports from management and the Company's auditors relating to the interim and annual accounts and the accounting and internal control systems in use throughout the Company. The Audit Committee has unrestricted access to the Company's auditors.

During the 15 month period under review the Audit Committee met twice.

The Nomination Committee

The Directors do not consider it necessary for a company of this size to have a separate Nomination Committee.

Directors' interests

The Directors beneficial interests in the Ordinary Share Capital and options to purchase such shares were as follows:

The figures for 31 December 2013 are presented as if the consolidation of Ordinary Shares on 2 June 2014 on the basis of 1 New Ordinary Share of 1p each for every 100 existing Ordinary Shares of 0.01p each had already taken place.

(*) In addition to the above interests in the Ordinary Shares of the Company, Oliver Cooke and Brian Raven have each subscribed for 5,000,000 A Ordinary Shares at 0.05 pence per share and have each been granted options over 50,000 G Ordinary shares of 1p each, as detailed in the table in the Remuneration Report. Either the 100,000 G Ordinary Shares, referred to in the table in the Remuneration Report, or the 10,000,000 A Ordinary Shares, but not both, will convert as a class into such number of Ordinary Shares as shall equate to 10 per cent of the Company's issued share capital as enlarged by such conversion on or after 31 July 2016.

 (**) Dominic Wheatley and Lord Astor resigned on 12 May 2014.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE 15 MONTH PERIOD ENDED 31 MARCH 2015

The results above relate to continuing operations for the period ending 31 March 2015. Revenue and Cost of sales for the year ended 31 December 2013 relate wholly to discontinued operations. Of the £423,000 of Loss from Operations in 2013, £194,000 relates to discontinued operations and £229,000 to continuing operations.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE 15 MONTH PERIOD ENDED 31 MARCH 2015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2015

The financial statements were approved by the Board and authorised for issue on 24 August 2015.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE 15 MONTH PERIOD ENDED 31 MARCH 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE 15 MONTH PERIOD ENDED 31 MARCH 2015

1. ACCOUNTING POLICIES

Principal accounting policies

The Company is a public company incorporated and domiciled in the United Kingdom. The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) as adopted by the European Union ("adopted IFRSs") and those parts of the Companies Act 2006 which apply to companies preparing their financial statements under IFRSs.

Frequency of Reporting

The accounting reference date of various group companies has been changed to create a uniform reporting date for the Group of 31 March in each year.

Changes in accounting policies

Standards issued but not yet effective up to the date of issuance of the Group's financial statements are listed below:

IFRS 9 Financial Instruments (effective from 1 April 2015)

IFRS 14 Regulatory Deferral Accounts (effective from 1 April 2016)

The implementation of these standards is not expected to have any material effect on the Group's financial statements.

Going concern

During the period the Group acquired a number of new subsidiaries and these have been included in the consolidated financial statements in accordance with the principles of acquisition accounting as laid out by IFRS 3 Business Combinations. The comparative figures reflect the results of Tavistock Investments Plc together with the results of its previous subsidiary undertaking, SocialGO Development Limited, until 29 July 2013.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. All such revenue is reported net of discounts and Value Added Tax. Revenue represents either gross Independent Financial Adviser ("IFA") income or investment management fees receivable in respect of the period. This revenue is recognised as and when it is earned and is calculated on a monthly basis.

Goodwill

Goodwill results from the acquisition of subsidiaries and represents the difference between the fair value of the consideration payable and the fair value of the net assets that have been acquired. Included within Goodwill are various intangible assets (such as FCA permissions, Tavistock Wealth's OEIC structure, established systems and processes, management knowhow and experience, adviser and client relationships and brand value) to which the Directors have ascribed a commercial value and a useful economic life. The ascribed value of these intangible assets is being amortised on a straight line basis over their estimated useful economic life, which is considered to be five years. The residual element of Goodwill is not being amortised but is subject to an annual impairment review.

Financial assets

Loans and receivables: These assets are deemed to be non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (trade receivables), but also incorporate other types of contractual monetary asset. They are carried at amortised cost using the effective interest rate method.

Cash and cash equivalents: Cash and cash equivalents include cash in hand and deposits held at call with UK banks.

Financial liabilities

Other financial liabilities include trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.

Share based payments 

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the statement of comprehensive income on a straight line basis over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of options expected to vest at each statement of financial position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

Fair value is calculated using the Black-Scholes model, details of which are given in note 16.

Property, plant and equipment

Property, plant and equipment are stated at cost net of accumulated depreciation and provision for impairment. Depreciation is provided on all property plant and equipment, at rates calculated to write off the cost less estimated residual value, of each asset on a straight-line basis over its expected useful life. The residual value is the estimated amount that would currently be obtained from disposal of the asset if the asset were already of the age and in the condition expected at the end of its useful economic life.

The method of depreciation for each class of depreciable asset is:

Computer equipment - 3 - 4 years straight line

Office fixtures, fittings & equipment - 4 - 7 years straight line

Impairment of Assets

Impairment tests on goodwill are undertaken annually at the balance sheet date. The recoverable value of goodwill is estimated on the basis of value in use, defined as the present value of the cash generating units with which the goodwill is associated. When value in use is less than the book value, an impairment is recorded and is irreversible.

Other non-financial assets are subject to impairment tests whenever circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its estimated recoverable value (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly. Where it is not possible to estimate the recoverable value of an individual asset, the impairment test is carried out on the asset's cash-generating unit. The carrying value of property, plant and equipment is assessed in order to determine if there is an indication of impairment. Any impairment is charged to the statement of comprehensive income. Impairment charges are included under administrative expenses within the consolidated statement of comprehensive income.

Taxation and deferred taxation

Corporation tax payable is provided on taxable profits at prevailing rates.

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the balance sheet differs from its tax base, except for differences arising on:

· the initial recognition of goodwill; and

· the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting or taxable profit.

Recognition of deferred tax assets is restricted to those instances where it is probable that future taxable profit will be available against which the difference can be utilised. The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the deferred tax liabilities/(assets) are settled/(recovered).

Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority on either:

· the same taxable Group company; or

· different Group entities which intend either to settle current tax assets and liabilities on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered. 

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of these financial statements has required management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. These judgments and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgments and estimations is contained below, as well as in the accounting policies and accompanying notes to the financial statements.

Impairment of goodwill and intangible assets

The Group is required to test, on an annual basis, whether goodwill has suffered any impairment. Other intangible assets are tested whenever circumstances indicate that their carrying value may not be recoverable. The recoverable amount is determined based on value in use calculations. The Group has impaired goodwill and intangible assets of £231,000 during the period (31 December 2013 - £Nil).

3. SEGMENTAL INFORMATION

During the period under review, the Group acquired businesses in the financial services sector. A segmental analysis of revenue and expenditure for the period is:

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.

As this is the first accounting period in which the Group has traded in the financial services sector, no comparative figures are available. During the period under review the Group operated exclusively within the UK.

The highest paid director during the period was paid £104,166 (31 December 2013: £58,000).

Directors' Detailed Emoluments

Details of individual Directors' emoluments for the 15 month period are as follows:

*Denotes non-executive Director

The tax assessed for the period differs from the standard rate of corporation tax in the UK applied to loss before tax.

Loss per ordinary share has been calculated using the weighted average number of shares in issue during the relevant financial periods, allowing for the consolidation of Ordinary Shares on 2 June 2014. The diluted loss per share is calculated on the diluted weighted average number of shares of 111,000.

Customer and Adviser Relationships relate to identifiable relationships between acquired companies, their adviser network and the associated client bases.

Regulatory Approvals and Systems relate to the estimated costs incurred by acquired companies in obtaining authorisations to carry on their relevant business and in putting in place the appropriate staffing and information structures.

Both the above intangible asset classes have remaining amortisation periods between four and five years.

ACQUISITIONS DURING THE PERIOD

Tavistock Partners Limited

On 30 May 2014, the Group acquired 100% of the ordinary shares in Tavistock Partners Limited, formerly County Life and Pensions Limited, an independent financial advisory company, for a total consideration of £7,350,000 which was satisfied in full through the issue to the vendors of 98,000,000 ordinary shares of 1p each at an issue price of 7.5 pence per share.

Included in the Consolidated Statement of Comprehensive Income is revenue of £3,396,000 and profit of £497,000 arising from Tavistock Partners Limited.

Tavistock Wealth Limited

On 30 May 2014, the Group also acquired 100% of the ordinary shares in Tavistock Wealth Ltd, formerly Blacksquare Limited, an investment management company, for an initial consideration of £1 in cash and deferred consideration to be calculated by reference to the value of funds under management at 31 May 2016 and to be settled through the issue of new ordinary shares of 1p each at an issue price of 7.5p per share. The Directors' estimate of the value of the deferred consideration on acquisition was £2,222,000.

Included in the Consolidated Statement of Comprehensive Income is revenue of £443,000 and a loss of £77,216 arising from Tavistock Wealth Limited.

Standard Financial Group Limited and Subsidiaries

On 13 February 2015, the Group acquired 100% of the ordinary shares of Standard Financial Group Limited, together with its two operating subsidiaries Financial Limited and Investments Limited. The main trading subsidiary, Financial Limited, provides network services to independent financial advisors. The initial consideration was £500,000 in cash and the deferred consideration, to be calculated by reference to the number of network members at completion remaining with the Group at 31 January 2016, will be settled at the Company's discretion either in cash or through the issue of new ordinary shares of 1p each at an issue price of 7.5p per share. The Directors' current estimate of the maximum value of the deferred consideration in £600,000.

Included in the Consolidated Statement of Comprehensive Income is revenue of £1,159,000 and a loss of £61,000 arising from Standard Financial Group Limited and Subsidiaries.

Cornerstone Asset Holdings Limited and Subsidiary

On 30 March 2015, the Group acquired 100% of the ordinary shares of Cornerstone Asset Holdings Limited, a company with a number of pre-existing client relationships together with its subsidiary, Sutcliffe Solloway Financial Planning Limited, an FCA regulated entity, for a cash consideration of £100,000.