REG - Tavistock Investment - Interim Results <Origin Href="QuoteRef">TAVI.L</Origin>
RNS Number : 0064ITavistock Investments PLC23 March 2015Tavistock Investments Plc
Unaudited interim results for the six months ended 31 December 2014
I am pleased to present the Company's unaudited results for the six month period to 31 December 2014 and to report that the Company has made significant progress both in the period under review and subsequently.
In my last report to shareholders, a copy of which was announced on 5 September 2014, I outlined our short-term objectives for the business. These were to ensure that Tavistock Wealth and Tavistock Partners operate together on an integrated basis, to progress toward profitable trading at the Group level and then to increase the scale and the geographic reach of the business. I am pleased to advise that all of these objectives have been achieved.
On 10 October, it was announced that Tavistock Wealth had developed and launched a discretionary fund management (DFM) service, predominantly for use by clients of the advisory business, Tavistock Partners, but also to be made available to selected third parties. This service included the provision of an extensive series of risk progressive model portfolios and to ensure choice in meeting the needs of each investor, many of the models are managed in conjunction with a panel of third party specialists.
Advisory clients were first made aware of the DFM service in early August and in the short period since, it has attracted some 1,600 investment clients and already manages more than 125 million on their behalf. As a consequence of this rapid growth Tavistock Wealth is now trading profitably. More information about Tavistock Wealth is available on the company's website at www.tavistockwealth.com.
Tavistock Partners, continues to trade profitably, as it has done consistently since its acquisition. More information about Tavistock Partners is available on the company's new website at www.tavistockpartners.com.
On 13 October 2014, the Company announced that it had made an initial grant of options under its recently established EMI Scheme. The Scheme had been established with the intention of providing a long term, tax efficient, incentive to retain and reward key staff within the business. The initial grant was made to certain directors and senior management to subscribe for, in aggregate, 8,300,000 new ordinary shares of 1p each in the Company ("Ordinary Shares") at a subscription price of 5.25p per share, being a price that had previously been agreed with HMRC.
As the EMI Scheme is a long term incentive program, with an effective life of 10 years, half of the options that were granted to each individual are exercisable after 3 years and the other half are exercisable after 5 years, and in both instances are subject to the continued employment of the individual within the Group.
In the months immediately following the period under review, the Company's unaudited management accounts indicated that the recently established integrated business had begun trading profitability at the Group level.
In February 2015 the Company announced that it had completed the acquisition of Standard Financial Group Limited ("SFG"), an IFA advisory business based near Cheltenham in Gloucestershire. In conjunction with the acquisition the Company raised a gross total, before costs, of 3,355,856 of additional working capital through the issue of 167,792,809 new ordinary shares of 1p each at a price of 2p per share and that as a consequence, the Company now has a total of 289,615,305 shares is issue.
Following this acquisition the Company has over 300 financial advisers and an estimated 3 billion of assets under advice. It currently also has some 2 million of available cash resources with which to fund its future development.
The Company subsequently announced a change in its accounting reference date from 31 December to 31 March of each year so as to align with that of its largest trading subsidiary, SFG.
Results for the period
The results, which are summarised below, reflect the extent to which the wider Group's costs exceeded the profits generated by Tavistock Partners throughout the period and the profits generated by Tavistock Wealth in the latter part of the period under review.
Reported revenues in the period were 2.25 million and the Company's loss before interest, depreciation and amortisation (EBITDA) was 165k. As at 31 December 2014, the Company had net assets of 7.75 million of which 170k was in cash. As a consequence of the share subscriptions and the placing completed in February 2015, the Company's cash resources were increased by some 3.35 million. These resources are considered to be sufficient for current needs.
Future objectives and prospects
SFG has historically operated a low margin business model that was solely dependent upon the scale of its network membership in order to achieve profitability. However, the business has recently been trading at a loss because of a fall in the number of network members. The Board's main objectives in the current year will be to integrate SFG's member firms into a restructured Group and to continue to develop synergies between our various trading subsidiaries.
Despite the fact that the current year might be characterised as being one of reorganisation and integration, the Company is now particularly well placed to capitalise on the opportunities that it has to further develop its business.
Consequently the Board will continue to pursue suitable acquisition opportunities and to grow the level of funds within Tavistock Wealth's centralised investment proposition.
I would like to thank all of our staff for their hard work and dedication since we began the "Tavistock journey" and I look forward to updating shareholders on the Company's further progress in due course.
Oliver Cooke
Executive Chairman
Consolidated Income Statement
For the six months ended 31 December 2014
Note
6 months to
31 December
2014
(unaudited)
6 months to
31 December
2013
(unaudited)
'000
'000
Revenue 2
- Continuing operations
2,251
35
Cost of sales
- Continuing operations
(1,419)
(15)
Gross profit
832
20
Administrative expenses
(1,012)
(173)
Loss from Operations
(180)
(153)
Reconciliation of earnings before interest, depreciation and amortisation (EBITDA) to Loss from Operations
- EBITDA
- Depreciation
(165)
(15)
(153)
-
Loss on disposal of discontinued operations
-
(92)
Interest payable
-
(2)
Finance income
-
1
Transaction costs associated with business combination
(163)
-
Loss before and after tax and total
comprehensive income for the year
(343)
(246)
Loss per New Ordinary Share (pence)
Basic
(0.28)p
(2.57)p
Consolidated Statement of Financial Position
As at 31 December 2014
Note
As at
31 December
2014
(unaudited)
As at
31 December
2013
(audited)
ASSETS
'000
'000
Non-current assets
Tangible fixed assets
31
-
Intangible assets 4
9,627
-
9,658
-
Current assets
Trade and other receivables
985
43
Cash and cash equivalents
170
324
1,155
367
Total Assets
10,813
367
LIABILITIES
Non-current liabilities
Deferred Consideration
(2,222)
-
Term Loan
(250)
(2,472)
-
Current liabilities
Trade and other payables
(371)
(5)
Accruals
(215)
(124)
(586)
(129)
Total liabilities
(3,058)
(129)
Total assets less liabilities
7,755
238
Equity
Share capital
8,567
7,471
Share premium
18,800
11,887
Retained deficit
(19,612)
(19,120)
Total equity
7,755
238
Consolidated Cash Flow Statement
For the six months ended 31 December 2014
6 months to
31 December
2014
(unaudited)
'000
6 months to
31 December
2013
(unaudited)
'000
Cash flows from operating activities
Loss from operations
(180)
(246)
Adjustments for:
Share based payments
23
(12)
Depreciation
15
(1)
Amortisation of intangible assets
-
(102)
Loss on disposal of discontinued operations
-
92
Finance Income
-
(1)
Cash flows from operating activities before changes in working capital
(142)
(270)
Increase in receivables
(297)
(107)
Increase/(decrease) in liabilities
119
(124)
Net cash used in from operating activities
(320)
(501)
Cash flows from investing activities
Finance Income
-
1
Net cash on acquisition of subsidiary
-
372
Capitalised R & D expenditure
-
31
Purchases of property, plant and equipment
(15)
-
Net cash (used in)/generated from investing activities
(15)
404
Cash flows from financing activities
Proceeds from issue of share capital
157
417
Net cash generated from financing activities
157
417
Net (decrease)/increase in cash and cash equivalents
(178)
320
Cash and cash equivalents at beginning of period
348
4
Cash and cash equivalents at end of period
170
324
Consolidated Statement of changes in equity
For the six months ended 31 December 2014
Share capital
Share premium
Retained earnings
Merger reserve
Total
'000
'000
'000
'000
'000
As at 30 June 2013
7,394
11,547
(18,739)
(118)
84
Shares issued
77
340
-
-
417
Reserves transfer
-
-
(135)
118
(17)
Loss before tax and after tax and total comprehensive income
-
-
(246)
-
(246)
As at 31 December 2013
7,471
11,887
(19,120)
-
238
Shares issued
1,050
6,780
-
-
7,830
Loss before tax and after tax and total comprehensive income
-
-
(172)
-
(172)
As at 30 June 2014
8,521
18,667
(19,292)
-
7,896
Shares issued
46
133
-
-
179
Loss before tax and after tax and total comprehensive income
-
-
(343)
-
(343)
Share based payment
-
-
23
-
23
As at 31 December 2014
8,567
18,800
(19,612)
-
7,755
Notes to the Interim Results for the six months ended 31 December 2014
1. Basis of preparation
The Interim Results for the six months ended 31 December 2014 have been prepared and presented inaccordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union. They havebeen prepared on a going concern basis with reference to the accounting policies and methods ofcomputation and presentation set out in the Group's consolidated financial statements for the period ended 31 December 2013, except as stated below.
The information in this announcement does not comprise statutory accounts within the meaning ofsection 434 of the Companies Act 2006. The Group's accounts for the year ended 31 December2013 havebeen reported on by the Group's auditors and delivered to the Registrar of Companies. The report ofthe auditors, dated 12 May 2014 was unqualified.
The Income Statement for the six months ended 31 December 2013 is unaudited, whilst the balance sheet as at 31 December 2013 has been audited.
2. Segmental information
The Group provides financial advisory and investment management services in the UK.
All of the Group's assets are UK based.
3. Loss per Share
6 months to 31 December 2014
(unaudited)
6 months to 31 December 2013
(unaudited)
Loss per New Ordinary Share has been calculated as follows:
Loss ('000)
343
246
Weighted average number of New Ordinary shares ('000s)
120,295
9,568
Basic loss per New Ordinary Share
0.28p
2.57p
Loss per New Ordinary Share has been calculated using the weighted average number of shares in issue during the relevant financial periods, adjusted for the consolidation of shares in May 2014.
4. Intangible Assets
Goodwill on
Capitalised
Intellectual
Consolidation
Development
Property
Total
'000
'000
'000
'000
Cost
Balance at 30 June 2013
Disposals
1,529
(1,529)
1,381
(1,381)
635
(635)
3,545
(3,545)
-----------
--------------
-------------
-------------
Balance at 31 December 2013
-
-
-
-
Additions (see Note 5)
Balance at 30 June 2014
9,899
-----------
9,899
-----------
-
-----------
-
-----------
-
-----------
-
-----------
9,899
------------
9,899
------------
Transaction costs
(272)
-
-
(272)
-----------
-----------
-----------
-------------
Balance at 31 December 2014
9,627
-
-
9,627
-----------
-----------
-----------
------------
Accumulated amortisation
Balance at 30 June 2013
1,529
824
635
2,988
Eliminated on disposal
(1,529)
(824)
(635)
(2,988)
-----------
--------------
-------------
---------------
Balance at 31 December 2013
Provision for period
Balance at 30 June 2014 and 31 December 2014
-
-
------------
-
-
-
-------------
-
-
-
-------------
-
-
-
--------------
-
------------
-------------
-------------
--------------
Net book value
At 30 June 2013
-
------------
557
-------------
-
------------
557
-------------
At 31 December 2013
-
-
-
-
-------------
-------------
------------
------------
At 30 June 2014
9,899
-
-
9,899
-------------
-------------
------------
------------
At 31 December 2014
9,627
-
-
9,627
-------------
-------------
------------
------------
5. Share Capital
31 December
2014
31 December
2013
'000
'000
Called up share capital
Allotted, called up and fully paid
121,822,496 New Ordinary shares of 1p
(31 December 2013 1,228,916,168 Ordinary Shares of 0.01 p)
1,218
122
10,000,000 Ordinary "A" shares of 0.01p
1
1
30,450,078 Deferred shares of 9p each
2,741
2,741
465,344,739 Deferred "A" shares of 0.99p
4,607
4,607
-----------
-------------
8,567
7,471
-----------
-------------
In September 2014, the Company placed 4,533,334 New Ordinary shares of 1p each and as a consequence the Company had a total of 121,822,496 New Ordinary shares in issue at 31 December 2014.
6. Events after the balance sheet date
Significant events after the balance sheet date have been referred to in the Chairman's Statement.
For further information:
Tavistock Investments plc
Oliver Cooke, Executive Chairman
Brian Raven, Group Chief Executive
Tel: 01753 867 000
Northland Capital Partners Limited
William Vandyk
Matthew Johnson
Tel: 020 7382 1100
WH Ireland Limited
Tim Feather
Mark Leonard
Tel: 0113 394 6600
Tel: 020 7220 1666
Templars Communications Ltd
Kitty Parry
James Kimber
Tel: 020 3642 3140
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR VBLBLEXFEBBE
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