REG - Tavistock Investment - Acquisition of Precise Protect Limited

Tavistock InvestmentsAnnouncement

11/04/2023 07:00

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RNS Number : 7050V  Tavistock Investments PLC  11 April 2023

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain.

 

Tavistock Investments Plc

("Tavistock" or the "Company")

 

Acquisition of Precise Protect Limited

 

11 April 2023

 

Tavistock (AIM:TAVI) is pleased to announce that it has today acquired the
entire issued and to be issued share capital of Precise Protect Limited, a
profitable and fast growing insurance and protection business based in Bangor,
Northern Ireland (the "Transaction"). Precise Protect is regulated by the
Financial Conduct Authority (the "FCA") and Tavistock has received change in
control consent for the Transaction from the FCA.

 

Background

 

As announced by the Company previously, the current financial year is a period
of transition for Tavistock as the Company focuses on the continued
development of its innovative commercial operating model and replacement of
the contribution from its investment management business, which was sold to
Titan Wealth Holdings Limited in August 2021.

 

Key elements of Tavistock's innovative commercial operating model include:

 

·    Automated adviser oversight and real-time risk management

·    Integrated technology facilitating data mining and business
intelligence

·    The Tavistock Academy to augment recruitment and career development

·    Multiple sources of lead generation (including affinities,
distribution partners and client referrals)

·    A "Tell Me How" financial portal for corporate and affinity clients

·    Proven blueprint for successfully integrating acquisitions.

 

Acquisition of Precise Protect

 

Precise Protect has a network of over 200 advisers working with more than
37,000 UK clients, with an average age of under 40. Precise offers its clients
a wide range of products (including life and critical illness cover, private
medical insurance, personal injury and income protection), several of which
were developed in-house and are unique to the firm. In the year ended 31
October 2022, Precise Protect reported a profit before taxation of £1.45
million on turnover of £6.5 million and net assets of £1.23 million.

 

Following the Transaction, the Tavistock group will have more than 400
advisers and other business introducers looking after over 110,000 private
clients with estimated assets of over £5.0 billion, as well as 350 corporate
and affinity clients with some 16,000 employees.

 

The total consideration for the Transaction (assuming the achievement of all
performance related earn-outs) will amount to up to some £7.0 million.
£250,000 of the consideration is to be settled through the issue of 3,571,429
new ordinary shares of 1 penny each in the capital of Tavistock Investments
Plc at an issue price of 7p per share (the "Consideration Shares"), with the
balance being settled in cash from the Company's existing cash resources and
the Company drawing down from the acquisition debt facility provided by the
Bank of Ireland.

 

£2.75 million of the cash consideration is being paid now, together with the
issue of the Consideration Shares (conditional on admission to trading on
AIM). The balance of the cash consideration, totalling up to some £4.0
million, is payable in three subsequent annual instalments, the value of each
being linked to the future performance of the Precise Protect business.

 

Admission and total voting rights

 

An application has been submitted to the London Stock Exchange for the
Consideration Shares to be admitted to trading on AIM and trading in the
Consideration Shares is anticipated to commence at 7.00am on Thursday 13 April
2023 ("Admission").

 

Upon Admission, the Company's issued share capital will comprise of
560,429,005 ordinary shares of 1 penny each, with one voting right per share
("Ordinary Shares"). The Company does not hold any ordinary shares in treasury
and therefore the total number of Ordinary Shares with voting rights in the
Company is 560,429,005.

 

With effect from Admission, the above figure of 560,429,005 may be used by
shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to
their interest in, the share capital of the Company under the FCA's Disclosure
Guidance and Transparency Rules.

 

Key anticipated synergies

 

Precise Protect is the first significant acquisition in the next phase of
Tavistock's growth plan. Integration of Precise into the Tavistock group will
provide opportunities for operational cost savings (e.g. software, systems and
regulatory oversight). However, the most significant benefit to Tavistock will
be Precise Protect's experienced and dedicated specialist team. Other key
benefits include:

 

·    37,000+ clients providing financial advice leads for both desk based
and face-to-face advice teams

·    Upskilling mortgage and protection advisers to become IFAs through
the Tavistock Academy.

 

Tony Close, Precise Protect's Managing Director, said: "Precise Protect's
revenues and EBITDA have grown rapidly and we remain excited about its
prospects. However, we are very pleased to be joining the Tavistock group
which will enable us to offer a much wider range of services to our clients,
as well as deliver a development pathway for advisers and career development
opportunities for staff."

 

Brian Raven, Tavistock's Chief Executive, said; "We are delighted to welcome
Tony and his team into the group and to add Precise Protect's products to the
wider group's service proposition. We look forward to benefitting from
numerous synergies, including operational cost savings, increased
profitability and new business leads."

 

 

For further information:

 

  Tavistock Investments Plc

  Oliver Cooke

  Brian
 Raven
 Tel: 01753 867000

 Allenby Capital Limited                              Tel: 020 3328 5656

 (Nominated adviser and broker)

 Corporate Finance:

 Nick Naylor, Nick Athanas, Daniel Dearden-Williams

 Sales and Corporate Broking:

 Tony Quirke

 Powerscourt

 Gilly Lock                                           Tel: 07711 380 007

 Roxane Girard                                               020 7250 1446

 

 About Tavistock Investments Plc

 

Tavistock Investments Plc is an AIM listed financial services group which
before the acquisition of Precise Protect had more than 200 advisers and other
business introducers across the UK. Tavistock has over 75,000 clients with
more than £5 billon of investments.

 

Tavistock's advisory business operates throughout the UK. The Tavistock
Partners network supports Registered Individuals (self-employed IFAs),
providing compliance, administration, technology, training and accounting
services. The Tavistock Partnership is a network that does the same for
Appointed Representative firms. Tavistock Private Client provides wealth
management and financial planning to high-net-worth individuals.

 

The Tavistock Platform, launched in 2020, provides a low-cost platform service
to the Group's advisory and investment clients.

 

Tavistock Asset Management ("TAM") markets the Group's centralised investment
proposition, both the ACUMEN UCITS funds and the Group's Model Portfolio
Service ("MPS"). In June 2021 the Company entered a ten-year strategic
partnership with Titan Wealth Holdings Limited ("Titan Wealth"). Tavistock
acts as Titan Wealth's retail distribution partner. TAM retains Titan Wealth
as investment manager for the MPS.

 

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