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Overview
Tavistock Investments Plc (TAVI) is involved in the provision of investment management services and support services to a network of IFAs (independent financial advisories). The company has differentiated its operations in two operating segments: Investment Management and Advisory Support. The Group's businesses comprise of Tavistock Partners, Tavistock Financial, and Tavistock Wealth. TAVIâs subsidiaries include Cornerstone Asset Holdings Limited, Tavistock Partners Limited, Duchy Independent Financial Advisors Limited, Sterling McCall Limited, and Tavistock Wealth Limited.
Financial Highlights (FY2019, 壉000)
(Source: Annual Report, Company Website)
The companyâs gross revenue decreased by 5 per cent to £27.3 million as compared with the financial year 2018 of £28.8 million. Adjusted EBITDA surged by 101 per cent to £1.48 million against the £0.73 million in 2018. Reported net assets increased from £18.7 million in 2018 to £20 million in 2019. The company generated £1.2 million from operations and raised £3.35 million of new equity capital, loan and lease funding and made payments during the year 2019 of £4.38 million on loan repayments, finance costs, deferred consideration obligations, the purchase of client books and the development of key initiatives. The Group maintained the level of its cash resources at £3.1 million. Reported profit from operations (before exceptional items) rose by 147 per cent to £0.17 million as compared to the loss of £0.37 million in FY2018. The company will be paying an interim dividend per share of 0.01 pence to those shareholders who are on the Companyâs share register as at 28 June 2019. The discretionary FUM (funds under management) climbed by 9.1 per cent to £945 million against the £866 million in 2018.
Share Price Performance
Daily Chart as at May-17-19, before the market closed (Source: Thomson Reuters)
On 17th May 2019, at the time of writing (before the market close, GMT 9:30 AM), TAVI shares were trading at GBX 3.30 and remained flat against its previous day closing price. Stock's 52 weeks High and Low is GBX 4/GBX 2.70. The companyâs stock beta was 0.27, reflecting lower volatility as compared to the benchmark index.
Key Risks
The economic consequences resulting from BREXIT arrangements remain unknown and these could have a marked impact on markets in the short to medium term.
Conclusion
The Group has continued to achieve strong growth in the level of adjusted EBITDA and has declared the payment of a maiden interim dividend to those shareholders who are on the Companyâs share register as at 28 June 2019. This represents a significant milestone in the development of the business. The companyâs prime objective is to continue to grow the level of funds under management, as the provision of investment management services on a discretionary basis lies at the heart of the Groupâs commercial activities. The Boardâs challenge is to make these products available to a mass audience as possible and as rapidly as possible. With this strategic objective in mind, management is focused on the development and pursuit of a number of key initiatives.
