REG - Tavistock Investment - Interim Results
19/12/2023 07:00
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RNS Number : 2089X Tavistock Investments PLC 19 December 2023
Tavistock Investments Plc
("Tavistock" or the "Company")
Interim results
19 December 2023
Tavistock announces its unaudited interim results for the six months ended 30
September 2023.
Ongoing advisory business highlights:
· Trading in first half of current financial year significantly ahead
of equivalent period last year.
· Revenue up 19% compared to same period last year to £20.6 million
(H1 2022: £17.3 million).
· Gross profit up 34% to £7.7 million (H1 2022: £5.8 million).
· Adjusted EBITDA up twelvefold to £1.7 million (H1 2022: £0.14
million).
· Reported profit from operations up 294% to £0.9 million (H1 2022:
loss £0.5 million).
· An interim dividend (announced on 5 October 2023) of 0.07p per share
paid on 15 December 2023 (matching dividend paid in July 2022).
Brian Raven, Tavistock's Chief Executive, said: "I am pleased with the
Company's strong growth during the first half of this financial year and the
successful integration and rebranding of Precise Protect, now Tavistock
Protect, which is set to be a major contributor to future profitability of the
Group. The Company's cash resources have been bolstered recently by receipt of
the second of three deferred consideration payments from Titan Wealth."
For further information:
Tavistock Investments Plc
Oliver Cooke Tel: 01753 867000
Brian Raven
Allenby Capital Limited Tel: 020 3328 5656
(Nominated adviser and broker)
Corporate Finance:
Nick Naylor, Liz Kirchner, Daniel Dearden-Williams
Sales and Corporate Broking:
Tony Quirke
Powerscourt
Gilly Lock Tel: 07711 380 007
Roxane Girard 020 7250 1446
TAVISTOCK INVESTMENTS PLC
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
I am pleased to advise that trading in the first half of the current financial
year is significantly ahead of the equivalent period in the previous financial
year.
The Company's unaudited interim accounts for the six-month period to 30
September 2023 show that gross revenues have increased by 19% to £20.6
million (prior year equivalent period: £17.3 million), gross margin has
increased by 34% to £7.7 million (prior year: £5.8 million), reported profit
from operations has increased by 294% to £0.9 million (prior year: loss £0.5
million) and EBITDA (earnings before interest taxation depreciation and
amortisation) has risen twelvefold to £1.7 million (prior year: EBITDA
£147k).
The Company announced the acquisition of Precise Protect Ltd in April 2023 and
it has since been rebranded Tavistock Protect Limited ("Tavistock Protect").
Tavistock Protect is a profitable and fast-growing UK wide protection business
based in Bangor, Northern Ireland. The Board believes that it will be a major
contributor to the future profitability of the Group and is pleased to report
that it has been successfully integrated into the Group.
Tavistock now has a network of over 400 advisers and other business
introducers working with more than 110,000 UK clients, whose assets are
estimated to exceed £5.7 billion in value, as well as 350 corporate and
affinity clients with some 16,000 employees. The Company is thus well placed
to pursue its ambitious growth plans.
The Company has implemented the new Consumer Duty regime and has completed its
review of all British Steel Defined Benefit Pension Transfer cases with
minimal uninsured cost being incurred.
Financial performance during the period
The table below compares the Company's performance during the period under
review with the equivalent period during the last financial year.
Adjusted EBITDA (defined as being Earnings Before Interest, Taxation,
Depreciation and Amortisation as adjusted to remove the distorting effect of
one-off gains and losses arising on acquisitions/disposals, as well as other
non-cash items) is highlighted as the Board considers this, rather than
Operating Profit, to be the best measure of the Company's underlying trading
performance.
RESULTS FROM ONGOING ACTIVITIES 6Months ended 6 Months ended Movement
30 Sept '23 30 Sept '22
£'000s £'000s
Revenues 20,560 17,334 19% increase
Adjusted EBITDA 1,724 147 1,073% improvement
Depreciation & Amortisation (693) (497) 39% increase
Share based payments (116) (120) 3% decrease
Regulatory provisions (49) -
Reported Profit/(Loss) from Operations 915 (470)
Earnings/(Loss) per ordinary share 0.04p (0.14)p
As at 30 Sept '23 As at 31 Mar '23
£'000s £'000s
Net assets at Interim end 40,691 41,771 3% decrease
Cash resources at Interim end 2,596* 9,733 73% decrease
*After the period end, the Company received the second of three deferred
consideration payments from Titan Wealth Services Limited which increased the
Group's cash resources by c.£5 million.
Dividends
On 15 December 2023 the Company paid an interim dividend of 0.07p per share,
which matches the dividend that was paid in July 2022.
LEBC
In November 2023, LEBC (in which Tavistock has a minority shareholding)
announced that it had sold (subject to regulatory approval) its wholly owned
subsidiary, Aspira Corporate Solutions Limited, to Titan Wealth Services
Limited ("Titan") for an initial cash consideration of £20 million together
with an additional deferred consideration of up to £25 million payable over
the next three years. Payment of the deferred consideration is linked to
Aspira's performance under Titan's ownership. Prior to the year end, the Board
will give due consideration to the likely ultimate value of this transaction
(after the impact of redress payments to be made in relation to poor past
pension transfer advice) and review the carrying value of the Company's
investment in LEBC.
Prospects
The Board's focus continues to be on optimising the Group's structure,
generating the funding required for growth and maximising shareholder value.
I look forward to updating shareholders in due course.
Oliver Cooke
Chairman
18 December 2023
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Unaudited Unaudited
6 months ended 6 months ended
30 September 30 September
2023 2022
Note £'000 £'000
Revenue 2 20,560 17,334
Cost of sales 2 (12,827) (11,577)
------------ ------------
Gross profit 7,733 5,757
Administrative expenses 2 (6,818) (6,227)
-------------- --------------
Profit/(Loss) from Total Operations 915 (470)
Adjusted EBITDA 1,773 147
Depreciation & Amortisation (693) (497)
Share Based Payment (116) (120)
Regulatory provisions (49) -
-------------- --------------
Profit/(Loss) from Operations 915 (470)
Finance costs (131) (58)
LLP members remuneration charged as an expense (572) (277)
Share of profit/(loss) in associate 28 (58)
------------ ------------
Profit/(Loss) before taxation 240 (863)
Taxation - -
------------ ------------
Profit/(Loss) after taxation 240 (863)
------------ ------------
Profit/(Loss) after taxation and attributable to equity holders of the Parent
and total comprehensive income for the period
240 (863)
====== ======
Earnings/(Loss) per share
Basic 3 0.04p (0.15)p
====== ======
Diluted 3 0.04p (0.13)p
====== ======
TAVISTOCK INVESTMENTS
PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
Unaudited Audited
30 September 2023 31 March 2023
Note £'000 £'000 £'000 £'000
ASSETS
Non-current assets
Tangible fixed assets 1,789 1,971
Intangible assets 4 23,194 19,560
Investments in associates 5 10,092 10,035
Trade and other receivables 8,742 8,740
----------------- -----------------
Total non-current assets 43,817 40,306
Current assets
Trade and other receivables 12,940 10,473
Cash and cash equivalents 2,596 9,733
----------------- -----------------
Total current assets 15,536 20,206
----------------- -----------------
Total assets 59,353 60,512
LIABILITIES
Current liabilities (8,144) (10,726)
Non-current liabilities
Loan & Lease liability (2,733) (999)
Payments due regarding purchase of client lists (903) (923)
Provisions (6,792) (6,004)
Deferred taxation (89) (89)
------------------ ------------------
Total liabilities (18,661) (18,741)
------------------ ------------------
Total net assets 40,692 41,771
========= =========
Capital and reserves
Share Capital 6 5,604 5,567
Share Premium 6 1,828 1,614
Capital Redemption Reserve 6 534 534
Retained Earnings 32,726 34,056
------------------ ------------------
Total equity 40,692 41,771
========= =========
The unaudited interim condensed consolidated financial statements were
approved by the Board and authorised for issue on
18 December 2023.
Oliver Cooke
Chairman
TAVISTOCK INVESTMENTS
PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Share Capital Share Premium Capital Redemption Reserve Retained Earnings Total Equity
£'000 £'000 £'000 £'000 £'000
31 March 2022 5,578 1,541 501 35,856 43,477
Loss after tax and total comprehensive income - - - (1,395) (1,395)
Equity settled share based payments - - - 107 107
Buy back of shares (33) 73 33 (302) (230)
Dividend received - - - 373 373
Closure of subsidiary - - - (192) (192)
Dividend payment - - - (391) (391)
Share options exercised 22 - - - 22
------------- -------------- ------------- --------------- --------------
31 March 2023 5,567 1,614 534 34,056 41,771
-------------- -------------- ------------- -------------- --------------
Profit after tax and total comprehensive income - - - 240 240
Equity settled share based payments - - - 116 116
Disposal/Closure of subsidiary - - - (102) (102)
Issue of shares 37 214 - - 249
Acquisition of Tavistock Protect Limited - - - (1,584) (1,584)
-------------- -------------- -------------- -------------- --------------
Unaudited 30 September 2023 5,604 1,828 534 32,726 40,692
-------------- -------------- ------------- -------------- --------------
TAVISTOCK INVESTMENTS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Unaudited Audited
Period ended Period ended 31 March 2023
30 September 2023
£'000 £'000
Cash flows from operating activities
Profit/(loss) from Operations 240 (1,568)
Adjustments for:
Share based payments 116 107
Depreciation on tangible fixed assets 308 681
Amortisation of intangible assets 385 563
Regulatory provisions 49 (342)
Exceptional costs/income - 69
Finance costs 131 (139)
Minority interest in LEBC (28) -
----------------- -----------------
Cash flows generated from/(used in) operating activities 1,201 (629)
before changes in working capital
(Increase)/decrease in trade and other receivables (1,533) 111
Decrease in trade and other creditors (2,054) (1,274)
----------------- -----------------
Cash used in Operations (2,386) (1,792)
Investing activities
Intangible assets - client lists and internally developed assets (643) (732)
Purchase of tangible fixed assets (157) (1,176)
Purchase of associate (4,000) (6,060)
Deferred consideration payments 237 (1,621)
Cash received on sale of client list - 100
Cash paid for subsidiary - (1,515)
Cash received on sale of subsidiary entities - 7,461
Cash included on purchase of subsidiary 416 -
Purchase of subsidiary (3,127) -
----------------- -----------------
Net cashflow used in investing activities (7,274) (3,543)
Financing activities
Finance (costs)/income (131) 139
New leases 55 698
Lease repayment (201) (445)
New loans 3,000 -
Loan repayments (200) -
Buy-back of shares - (302)
Dividend payment - (391)
Exercise of share options - 95
----------------- -----------------
Net cashflow generated from/(used in) financing activities 2,523 (206)
----------------- -----------------
Net change in cash and cash equivalents (7,137) (5,541)
Cash and cash equivalents at start of period 9,733 15,274
------------------ ------------------
Cash and cash equivalents at end of period 2,596 9,733
========= =========
TAVISTOCK INVESTMENTS PLC
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
1. ACCOUNTING POLICIES
Basis of preparation
The Consolidated Financial Statements have been prepared in accordance with UK
adopted International Financial Reporting Standards ("IFRS") in conformity
with the requirements of the Companies Act 2006.
The Financial Statements are presented in pound sterling and all values are
rounded to the nearest thousandth (£'000), except when otherwise indicated.
The accounts have been prepared in accordance with accounting policies that
are consistent with the March 2023 Report and Accounts and that are expected
to be applied in the Report and Accounts of the year ending 31 March 2024.
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 2023 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:
Group Investment Management Advisory Unaudited Period ended 30 September 2023 Unaudited Period ended 30 September 2022
(Plc) Business
£'000 £'000 £'000 £'000 £'000
Revenue 160 347 20,053 20,560 17,334
Cost of sales (611) (210) (12,006) (12,827) (11,577)
------------- ------------- ------------- ------------- -------------
Gross profit (451) 137 8,047 7,733 5,757
------------- ------------- ------------- ------------- -------------
Attributed Expenses (2,289) (206) (4,158) (6,653) (6,107)
Other Administrative expenses
Share based payments (116) (120)
Regulatory provisions (49) -
------------- -------------
Profit/(Loss) from operations 915 (470)
====== ======
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. (LOSS)/EARNINGS PER SHARE Unaudited Unaudited
6 months ended 6 months ended
30 September 2023 30 September 2022
Earnings/(Loss) per share has been calculated using the following:
Profit/(Loss) after taxation (£'000) 240 (863)
Weighted average number of shares ('000s) 560,213 557,443
-------------- --------------
Earnings/(Loss) per ordinary share 0.04p (0.15)p
====== ======
Weighted average number of shares and share options 78,440 80,796
that were exercisable at period end ('000s)
-------------- --------------
Diluted Earnings/(Loss) per ordinary share 0.04p (0.13)p
====== ======
4. INTANGIBLE ASSETS Goodwill Internally
Client Arising on Developed
Lists Consolidation Assets Total
£'000 £'000 £'000 £'000
Cost
Balance at 1 April 2023 (Audited) 13,009 12,835 3,396 29,240
Additions 504 3,426 231 4,161
Revaluation (143) - - (143)
------------- ------------- ------------ ---------------
Balance at 30 September 2023 (Unaudited) 13,370 16,261 3,627 33,258
------------- ------------ ------------ ---------------
Accumulated amortisation
Balance at 1 April 2023 (Audited) 8,144 235 1,301 9,680
Amortisation 299 - 86 385
------------ ----------- ------------ ---------------
Balance at 30 September 2023 (Unaudited) 8,443 235 1,387 10,065
----------- ------------ ------------ ---------------
Net Book Value
------------ ------------ ------------ ------------
At 30 September 2023 (Unaudited) 4,927 16,026 2,240 23,193
====== ====== ====== =======
At 31 March 2023 (Audited) 4,865 12,600 2,095 19,560
====== ====== ====== =======
5. INVESTMENTS IN ASSOCIATES
Investments in Associates
Investments in Associates £'000
Cost
Balance at 1 April 2023 (Audited) 10,035
Additions 57
------------
Balance at 30 September 2023 (Unaudited) 10,092
======
Net Book Value
At 30 September 2023 (Unaudited) 10,092
======
At 1 April 2023 (Audited) 10,035
======
6. SHARE CAPITAL Unaudited Audited
30 September 2023 31 March
2023
£'000 £'000
Called up share capital
Allotted, called up and fully paid
560,429,005 Ordinary shares of 1 pence each 5,602 5,567
(31 March 2023: 556,857,576)
Capital Redemption Reserve 534 534
====== ======
6,136 6,101
Share Premium 1,828 1,614
------------ ------------
7,964 7,715
====== ======
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