Interim Results

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: [phone] Brian Raven Allenby Capital Limited (Nominated adviser and broker) Corporate Finance: Nick Naylor, Liz Kirchner, Daniel Dearden-Williams Sales and Corporate Broking: Tony Quirke Tel: [phone] Powerscourt Gilly Lock Roxane Girard Tel: [phone]        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 30 September 2023		Period ended                  31 March 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 (Plc)	Investment Management	Advisory Business		Unaudited Period ended 30 September 2023	Unaudited Period ended 30 September 2022
		£'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
		======	======

 

END