Tavistock Regulatory News (TAVI)

Tavistock Investments Plc

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

Interim accounts

6 December 2021

Tavistock (AIM:TAVI) is pleased to announce its unaudited financial results for the six months ended 30 September 2021.

The Company also announces that copies of the interim results will be posted to shareholders today. A copy of the interims together with an accompanying letter from the Chairman will shortly be made available on the Company's website (https://tavistockinvestments.com/).

Financial highlights

Group

· Net assets of £49.8 million (31 March 2021: £15.0 million)

· Initial £20.0 million of consideration from sale of Tavistock Wealth Limited ("TWL") to Titan Wealth Holdings Limited ("Titan") received in August 2021

o Proceeds have enabled the Company to:

§ Repay all its outstanding borrowings of £3.53 million

§ Buy back and cancel 4.7% of the Company's issued share capital - enhancing earnings per share and intrinsic value of shares remaining in issue

§ Pay an interim dividend of 0.05p per share, five times higher than maiden dividend (2019: 0.01p per share)

§ Increase the net asset value per share to 8.6p (31 March 2021: 3p)

· Revenues up 27% at £17.0 million (H1 2020: £13.4 million)

· Adjusted EBITDA 13% lower at £1.1 million (H1 2020: £1.3 million) due to the one-off impact of staff salary sacrifice and government furlough support during H1 2020 and disposal of TWL in August 2021

· Profit before tax at £35.5 million (H1 2020: £416k loss), including present day value of the profit arising from the disposal of TWL to Titan

Advisory business

· 37% increase in revenues to £14.7 million (H1 2020: £10.7 million)

o Advisory revenues anticipated to exceed total Group revenues for the full financial year 2020

· Contribution to Group adjusted EBITDA up 56% to £1.5 million (H1 2020: £0.96 million)

· Continued recognition of best -in-class client service with Tavistock Private Client Limited acknowledged as Best Financial Planning and Wealth Management Firm in England at SME News' Finance Awards 2021

Investment Management business

· 13% reduction in revenues to £2.4 million (H1 2020: £2.7 million) and 6% reduction in EBITDA to £1.6 million (H1 2020: £1.7 million) due to the Group benefitting from only five months' contribution from the investment management business prior to completion of the sale to Titan

Brian Raven, Tavistock's Chief Executive, said: "The strategic partnership with Titan and sale of TWL has transformed the shape of the business and its prospects. It has enabled the delivery of immediate enhancement in value to shareholders while providing the Company with the firepower to accelerate the growth of the business through acquisitions, with some exciting prospective targets already being considered.

"In addition, our advisory business continues to perform strongly and is already on track to deliver revenues ahead of the entire Group revenues in the prior year. We are in a strong position to continue developing a much larger and more profitable distribution and wealth management group, to deliver enhanced value to shareholders."

For further information

TAVISTOCK INVESTMENTS PLC

CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

In the period under review the Board successfully concluded a fundamental transformation of the Company's standing and prospects.

This was achieved by entering into a ten-year strategic partnership with Titan Wealth Holdings Limited ("Titan"). As a part of the partnership arrangements, Titan acquired the Group's investment management business, Tavistock Wealth Limited ("TWL"), for a consideration of up to £40 million, in cash, together with a ten-year revenue sharing earn out. The cash element of the transaction alone was equivalent to more than 2.5 times the Company's market capitalisation immediately prior to the announcement of the deal.

The initial £20 million of the consideration was received at the end of August 2021, when the transaction was formally completed. The balance of the consideration of up to a further £20 million is payable in cash in annual instalments over the next three years, linked to the maintenance of TWL's revenues.

This transaction has enabled the Company to:

· repay £3.53 million to its bankers, NatWest, in full satisfaction of all outstanding borrowings;

· buy back and cancel 4.7% of the Company's issued share capital, thereby enhancing the earnings per share and thus the intrinsic value of all the shares remaining in issue;

· pay an interim dividend to shareholders five times higher than the maiden dividend paid to them in 2019; and

· increase the net asset value per share from under 3p at the end of March 2021 to over 8p at 30 September 2021.

The Company is now well positioned to increase the scale of its business through both continued organic growth and an accelerated acquisition programme without significant further dilution for shareholders.

Several potential acquisitions are currently being considered by the board.

Financial performance during the period

Revenues from financial advisory support have grown strongly in the period, up 37% on the same period last year to £14.7 million (2020: £10.7 million). It is anticipated that revenues from this area for the full financial year will exceed the total revenues reported by the Group in the last financial year.

The contribution to the Group's adjusted EBITDA from this area has also grown strongly in the period, up 56% on the same period last year to £1.5 million (2020: £0.96 mill). Adjusted EBITDA is considered by the board to be the most appropriate measure of the Group's performance because it removes the distorting effect of one-off gains and losses from acquisitions, as well as the impact of non-cash items.

The dedicated manner in which the Group's advisers look after the interests of their clients is continuing to gain recognition within the financial services industry. One of the Group's advisory businesses, Tavistock Private Client Limited, has recently been acknowledged as the Best Financial Planning and Wealth Management Firm in England at the SME News' Finance Awards 2021.

Revenues from the Group's investment management business were 13% down on last year at £2.4 million (2020: £2.7 million) and the contribution to the Group's adjusted EBITDA was down 6% on last year to £1.6 million (2020: £1.7 million). This was because the Group only benefitted from five month's contribution from its investment management business (prior to completion of the sale to Titan) during the period under review, compared to a full six months' contribution during the same period last year.

The Group's revenues, at £17 million, were 27% higher than in the same period last year (2020: £13.4 million) and its adjusted EBITDA for the period, at £1.1 million, was 13% lower than the same period last year (2020: £1.3 million). However, it should be noted that in the comparable period last year the Group benefited from approximately £400k of staff salary sacrifice and government furlough support, as well as a further £460k of revenue from its investment management business. Thus, on a like for like basis the Group's performance continues to improve.

The reported profit before tax, after providing for the Group reorganisation project, depreciation and amortisation and share based payments, was £35.5 million (6 months to September 2020: £416k loss). This result includes the present-day value of the profit arising from the disposal of TWL to Titan.

At 30 September 2021, the Company had net assets of £49.8 million (31 March 2021: £15 million), which was equivalent in value to approximately 8.6 pence per share based on the number of shares then in issue. This figure included cash resources of £17.2 million (31 March 2020: £4.5 million) after further purchases of client books, repayment of all bank debt, the payment of the interim dividend to shareholders and the buy-back and cancellation of 4.7% of the Company's issued share capital.

The Group's results can be summarised as follows:

Post Balance Sheet events

The Board received confirmation that the disposal of TWL to Titan qualifies for Substantial Shareholding Exemption ("SSE"). As a consequence, no tax charge will be incurred on receipt of the consideration of up to £40 million in cash. This is clearly of significant benefit to the Company as in the absence of the SSE, the transaction might have given rise to a tax charge of approximately £7 million.

Future prospects

The Board's focus is on the continued increase in shareholder value. It intends to accomplish this by delivering a growing dividend stream, completing further share buy-backs and building a much larger and more profitable business.

I look forward to updating shareholders in due course.

Oliver Cooke

Chairman

[6]th December 2021

TAVISTOCK INVESTMENTS PLC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

TAVISTOCK INVESTMENTS PLC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2021

TAVISTOCK INVESTMENTS PLC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

TAVISTOCK INVESTMENTS PLC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

TAVISTOCK INVESTMENTS PLC

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

1. ACCOUNTING POLICIES

Basis of preparation The interim condensed consolidated 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 UK. The accounts have been prepared in accordance with accounting policies that are consistent with the March 2021 Report and Accounts and that are expected to be applied in the Report and Accounts of the year ending 31 March 2022.

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 2021 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:

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 statement of financial position 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. EARNINGS PER SHARE

4. INTANGIBLE ASSETS

5. SHARE CAPITAL