REG - Tavistock Investment - Trading Update <Origin Href="QuoteRef">TAVI.L</Origin>

Tavistock InvestmentsAnnouncement

10/05/2016 07:05

RNS Number : 5003X
Tavistock Investments PLC
10 May 2016
TAVISTOCK INVESTMENTS PLC
(the "Group" or "Tavistock")
TRADING UPDATE
Tavistock is delighted to provide an update on the considerable progress made during the financial year ended 31 March 2016 and post-period to 6 May 2016. The full year results, subject to audit, are expected to be ahead of market expectations.
Group highlights:
 Tavistock now operates an integrated, national business offering both financial advisory and investment management services, with 328 advisers supporting more than 70,000 clients around the UK
 Each of the Group's operating businesses is now trading profitably
 AUI (assets under influence) are estimated to be 4 billion and AUM (assets under management) on either a discretionary or advisory basis exceed 430 million
 As approximately 75% of the Group's net revenues are represented by recurring income, future performance has become significantly more predictable
Tavistock's business model is also gaining increasing commercial traction. In the first half of the financial year ended 31 March 2016, the Group's ongoing businesses reported a small EBITDA loss (excluding share based payment charges and one-off acquisition costs). By contrast, in the second half of the year, the Group's ongoing businesses are expected to report a profit in excess of the first half loss. Consequently, the Group anticipates reporting an EBITDA profit (excluding share based payment charges and one-off acquisition costs) for the year as a whole, which is ahead of market expectations.
Tavistock's recent acquisition of Abacus will significantly enhance the Group's performance in the current financial year and the Board remains committed to the introduction of a dividend stream for the benefit of shareholders within the next 12 months. To ensure the availability of sufficient distributable reserves to pay dividends, the Board plans to begin the Court process of offsetting accumulated losses (principally attributable to the historic discontinued SocialGo business) against the credit balance on the share premium account.
Brian Raven, Group Chief Executive, commented:
"We have made remarkable progress in the two short years since completing our initial transactions, and this would not have been possible without our exceptional management and staff. With more than 9 million of net assets, including cash resources of over 3 million, we are well positioned to capitalise on the opportunities available to us. We look forward to the continuation of our rapid progress in the year ahead."
For further information:
Tavistock Investments plc
Oliver Cooke, Executive Chairman
Brian Raven, Group Chief Executive
Tel: 01753 867000
Northland Capital Partners Limited
William Vandyk
Matthew Johnson
Tel: 020 3861 6625
WH Ireland Limited
Tim Feather
Liam Gribben
Tel: 0113 394 6600
Templars Communications Limited
Kitty Parry
Kate Boothman Meier
Tel: 020 3642 3140

This information is provided by RNS
The company news service from the London Stock Exchange
  END
TSTLIFFAEAIRIIR