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RNS Number : 2251N Tavistock Investments PLC 22 November 2024
Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.
With the publication of this announcement, which has been authorised for
release by Oliver Cooke, Chairman, this information is now considered to be in
the public domain.
Tavistock Investments Plc
("Tavistock" or the "Company")
Strategic acquisition of Alpha Beta Partners
Completion of disposal to Saltus
22 November 2024
Acquisition of Alpha Beta Partners ("ABP")
Tavistock (AIM:TAVI) is pleased to announce that it has exchanged contracts
for the acquisition of ABP, a well-regarded asset management business based in
London and Bath with approaching £3 billion of assets under management and a
strategic focus on retail investors served by regulated advice businesses
which is complementary to Tavistock's own business positioning.
This acquisition strengthens Tavistock's asset management scale and solutions
provision in the UK retail investment market. It is a key step in the Group's
refocusing into a much more significant asset manager providing investment
solutions to third party advice firms and networks, as well as to retail
clients directly.
ABP was established in 2017 by a team of experienced industry professionals
led by Geoff Brooks and Andrew Thompson, to provide a range of outsourced
investment propositions to directly regulated advice businesses and appointed
representative networks. Based on management accounts for the first nine
months of its current financial year, on an annualised basis, ABP has made
EBIT (earnings before interest and tax) of over £500,000 on turnover of over
£4 million and, as at 30 September 2024, had net assets of just over £1.2
million. It is particularly noted for its Dynamic Asset Allocation process and
modular proposition, providing retail and wholesale investors with
institutional techniques rarely found in this market segment. The success of
its outcome-oriented investment solutions has been recognised by Defaqto's 5
Star and 5 Diamond Ratings for the past 5 years.
The total consideration to be paid for ABP will be directly linked to its
financial performance over the next five years. There will be an initial
payment of £6.0 million at completion of the acquisition with the maximum
potential consideration capped at £18 million, payable in cash. Completion of
the transaction is subject to change in control approval by the Financial
Conduct Authority (the "FCA") at which point a further announcement will be
made.
Tavistock's strategy
The Tavistock Board's strategy is to optimise the balance between regulatory
risk and potential commercial reward to increase the intrinsic value of the
Company for the benefit of its shareholders. This is consistent with ABP's
focus on providing proprietary investment processes balancing quality asset
allocation with rigorous risk management ("Risk First").
The acquisition is a logical next step for Tavistock, having completed the
planned reduction of the Group's network of appointed representative firms
last year and, more recently, the disposal of its networks of self-employed
Registered Individuals to The Saltus Partnership Holdings LLP ("Saltus"),
which was announced on 1 October 2024.
Completion of disposal of two subsidiary businesses and funding
All the completion conditions for the disposal of Tavistock Partners Limited
and Tavistock Estate Planning Services Limited to Saltus have now been
satisfied and Tavistock will receive the initial consideration payment of
approximately £22 million by 2 December 2024. The total consideration for the
disposals of up to £37.75 million is approaching twice the Company's current
market capitalisation on AIM (some £19.9 million at market close on 21
November 2024) and provides the Company with a substantial level of funding
with which to refocus its activities.
Future profile of Tavistock
The Company has retained both its profitable, employed adviser business,
Tavistock Private Client, and its profitable protection business, Tavistock
Protect. The Board intends that the provision of investment management
services to the clients of third-party advice businesses, and directly to the
public on a non-advised basis, will become a substantial part of its service
proposition. Hence the addition of ABP to the Group is particularly fitting,
as it will form the cornerstone of the Company's strategic focus on asset
management.
Brian Raven, Tavistock's Chief Executive said "Alpha Beta Partners is joining
us at the ideal time. Their strategic plans and partnerships gel perfectly
with ours, particularly in terms of how to improve investor services and
value. We look forward to an exciting future together."
Geoff Brooks, ABP's Managing Director said "We are delighted to be joining
Tavistock to embark on the next phase of our growth and development, allowing
us to continue to both support our existing clients and create new
opportunities. Our team has been very impressed with everyone we have met at
Tavistock and our strategic vision and ambitions are aligned."
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, Daniel Dearden-Williams
Sales and Corporate Broking:
Tony Quirke
Flagstaff Communications tavistock@flagstaffcomms.com
(Financial PR/IR) Tel: 0207 129 1474
Tim Thompson
Alison Allfrey
Anna Probert
About Tavistock Investments plc
Tavistock Investments is a specialist wealth and asset management company
focused on meeting the specific needs of private investors and differentiated
by its commitment to excellence and revolutionary thinking.
Within the group, Tavistock Private Client has been recognised many times for
excellent advice services to higher net worth individuals, winning multiple
industry awards. It also operates an employee benefits business and
educational finance portal, "Tell Me How". Tavistock Asset Management,
augmented by the recent acquisition of ABP, delivers institutional portfolio
management services at a retail price, so that clients benefit from collective
buying power, as well as competitive dealing charges. It has a range of
diversified, multi-asset mandates with risk profile, levels of active
management and portfolio structures tailored to suit client needs. The third
element of wealth management, Tavistock Protect, provides clients with a
comprehensive range of life insurance and critical illness policies and will
shortly be expanding into the mortgage market.
Tavistock was founded by CEO Brian Raven, who has been involved in financial
services since 2010 and has a wealth of commercial experience. Together with
Chairman, Oliver Cooke, he founded Card Clear Plc in 1991 to combat the
fraudulent use of plastic payment cards and led it to an AIM listing in 1998.
They then developed a group focused on UK health and fitness sector loyalty
schemes, before Brian invested in the financial services sector in 2010, later
launching Tavistock, along with Oliver, in 2013. The company listed on AIM
that year and has been optimising its business portfolio ever since. Tavistock
recently divested two subsidiary businesses - Tavistock Partners and Tavistock
Estate Planning - to focus predominantly on wealth and asset management
activities. This restructuring has the benefit of optimising the balance of
regulatory risk and commercial reward, as well as providing significant
working and development capital for the group.
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