Tavistock Investments Plc (AIM:TAVI) announces its unaudited interim results for the six months ended 30 September 2020.
● 25% increase in the level of adjusted EBITDA compared to the same period last year
● Higher operating profit from lower gross revenues with adjusted EBITDA of £1.3 million on gross revenues of £13.4 million
● The leadership team is well advanced with a comprehensive Group-wide reorganisation expected to deliver more than £750,000 of annual cost savings
- Tavistock Wealth increased contribution to the Group's adjusted EBITDA by 32% to £2.0 million
- Level of FUM (funds under management) remained steady at £1.1 billion
● Protected products
- The Company's newest fund, the ACUMEN ESG Protection Portfolio, has performed particularly well to date, with its NAV (net asset value) dropping by just 1% between inception in December 2019 and the end of October 2020, compared to the FTSE 100 falling by almost 17% over the same period
- The fund won the Innovation Award at the 2020 Moneyfacts Investment Life & Pension Awards, beating competition from other much larger nominees
- Increased contribution to the Group's adjusted EBITDA by 344% to £964,000, predominantly resulting from the eradication of losses previously experienced by two entities.
Brian Raven, Chief Executive of Tavistock Investments, said: "In a year of unprecedented pressure on our business, I am delighted by our Group's performance and by how well our management team has adapted. We have undertaken a comprehensive cost saving exercise and are accelerating plans to significantly scale up our business. I am confident that these initiatives will enable us to deliver greater value to our shareholders and look forward to managing a growing dividend for their benefit."
● The Company is about to launch a new low-cost platform service, the Tavistock Platform, for use by the clients of the Group's advisers. The Group will then be delivering all aspects of the financial services value chain to retail clients - financial advice, investment management and the platform service that provides for the administration and custodianship of clients' assets.
● It is currently difficult to assess precisely how the Group will perform in the second half of its financial year, given the variable possibilities with regard to the Brexit outcome, the Government's public health policy and the impact on markets of the US Presidential election result. However, the Directors are confident that the initiatives underway will enable the Company to continue to increase operating profit and recommence the payment of a dividend.