REG - Tavistock Investment - Purchase of a minority shareholding in LEBC

Tavistock InvestmentsAnnouncement

10/01/2022 07:05

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RNS Number : 8186X  Tavistock Investments PLC  10 January 2022

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", the "Group" or the "Company")

Purchase of a minority shareholding in LEBC Holdings Limited

 

 

10 January 2022

 

Tavistock (AIM:TAVI) is pleased to announce that it has entered into an
agreement to purchase 21% of the issued share capital of LEBC Holdings Limited
("LEBC"). LEBC is an independent financial advisory group that has three
wholly owned subsidiaries, two of which are regulated by the Financial Conduct
Authority (the "FCA"), LEBC Group Limited and Aspira Corporate Solutions
Limited, and a third which is unregulated, LEBC Hummingbird Limited.

 

By acquiring this shareholding, Tavistock will become a "controller" (as per
the FCA's rules) of each of LEBC's regulated subsidiaries and completion of
the transaction is therefore conditional upon receipt of the FCA's approval.

 

Tavistock has agreed to acquire all of the 212,738 A ordinary shares of £0.01
each ("A Ordinary Shares") in LEBC for a total cash consideration of £10.0
million from Mrs Marie McVitie, the widow of LEBC's founder and former Chief
Executive, Mr Jack McVitie. £6.0 million of the consideration will be paid
upon completion and £4.0 million will be paid on a date that is twelve months
following completion. Ownership of the A Ordinary Shares entitles the holder
to a right of first refusal should any of the company's other shareholders
wish to dispose of their shares.

 

The LEBC group was established in 2000 as a provider of financial planning and
consultancy services to private and corporate clients. LEBC employs 46
financial planners, has over 75,000 clients and an estimated £5 billion of
assets under advice, of which over £500 million is invested in LEBC's model
portfolio service. LEBC's draft accounts for the financial year ended 30
September 2021 show that it achieved gross revenues of approximately £15.0
million and generated EBITDA of approximately £3.3 million. At 30 September
2021, LEBC had gross assets of £9.6 million and net assets of £5.6 million.

 

LEBC's largest shareholder is the AIM quoted company, B. P. Marsh &
Partners Plc ("BPM") which owns 60% of LEBC's voting rights. BPM is a
specialist investor in early-stage financial services intermediary businesses
in the UK and overseas. BPM has invested in over 50 businesses since it was
founded in 1990 and its management team has a wealth of experience and a
well-developed network within the financial services sector.

 

Derek Miles, LEBC's Managing Director, said; "We are delighted to welcome
Tavistock as a shareholder within our rapidly growing business. We expect
EBITDA to more than double this financial year and look forward to a long and
successful partnership with Tavistock, to our mutual benefit."

 

Brian Marsh, BP Marsh & Partners' Chairman, said; "We welcome Tavistock as
an investment partner in LEBC and look forward to working closely together to
accelerate the development of the business."

 

Brian Raven, Tavistock's Chief Executive, said; "We look forward to working in
close partnership with B. P. Marsh & Partners and with LEBC's management
team. The initial focus will be on accelerating LEBC's commercial development
and operational efficiency, as well as enhancing its oversight and compliance
regime through the introduction of Tavistock's proprietary risk-based
processes and procedures."

 

 

For further information:

 

 Tavistock Investments Plc                    Tel: 01753 867000

 Oliver Cooke

 Brian Raven

 Allenby Capital Limited                      Tel: 020 3328 5656

 (Nominated adviser and broker)

 Corporate Finance:

 Nick Naylor, Liz Kirchner, Freddie Wooding

 Sales and Corporate Broking:

 Tony Quirke

 Powerscourt                                  Tel: 07711 380 007

 Gilly Lock                                           020 7250 1446

 Chloe Retief

 About Tavistock Investments Plc

 

Tavistock Investments Plc is an AIM listed financial services group that has
over 175 advisers across the UK helping 40,000+ clients look after more than
£4 billon of investments. The Company was established in 2013.

 

Tavistock's advisory business operates throughout the UK. The Tavistock
Partners network supports over 130 Registered Individuals (IFAs), providing
compliance, administration, technology, training and accounting services. The
Tavistock Partnership is a network that does the same for 30 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 announced its entry into 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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