Ascot’s Tavistock Investments announces most successful year so far
Ascot-based investment advice company Tavistock Investments has released its financial results for the year ended 31 March 22, reporting the most successful year in its 18-year history as its gross revenues rose by 18 per cent to £34 million.
Much of this grow was driven by the firm’s advisory business, which has seen its gross revenues rise by 35 per cent to £31.3 million (up from £23.2 million in March 2021). This was 9 per cent above the gross revenues for the entire group’s previous year.
The advisory side also contributed £4.1 million before interest, taxes, depreciation, and amortization, which is a 64 per cent increase in its contribution to the group’s results on last year. The average revenue contribution per advisor improved by 22 per cent (from £176,000 in 2021 to £210,000 in 2022).
The firm also disposed of Tavistock Wealth, its portfolio management subsidiary, to Titan Wealth for £40 million in August 2021, with £20 million cash paid upon completion, representing a value of up to 13.9x the original acquisition cost in 2014. This enabled the business to pay down all bank debt.
Operationally, the roll out of the Tavistock Platform, a low-cost platform service provided to advisory and investment clients, has enhanced the firm’s proposition.
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The firm also says it is leading the market in its approach to managing compliance risk through its introduction of scorecards tailored to each advisor assessing their required oversight based on adviser experience, track record, product type recommended and product risk rating; updated in real-time from end October 2022
The firm has also recruited a dedicated risk manager, began a multi-phase project to improve operational efficiency in data management and business intelligence, and supported colleagues hit hardest by the cost-of-living crisis through one-off payments of £1,000 to all staff earning a full-time equivalent of £30,000 or less per year.
Brian Raven, Group Chief Executive, said: "The past financial year has been our most successful and demonstrates the strength and further growth potential in the business. With substantial cash resources, and a further £20 million receivable from Titan, the Company is well placed to enter the next stage of its development.
"We aim to continue the rapid expansion of our advisory business and accelerate the growth of investment management assets. We continue to assess and engage with potential acquisition targets, alongside our focus on sustained organic growth, to ensure we deliver enhanced value to shareholders.
"The advisory business trades profitably in its own right, with high levels of recurring income allowing for confidence in future revenues. The work undertaken to improve operational efficiency is already bearing fruit, and further steps are being taken to improve profitability and deliver further value."
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