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Tavistock funds soar 300% as losses slashed

Tavistock funds soar 300% as losses slashed

Tavistock Investments saw its funds under management grow by 332 per cent over the year.

In its results, published this morning (1 August), the company reported its funds under management had reached £769m.

The company also increased its revenue by 22 per cent to £36.4m and its losses from operations fell by 67 per cent.

In the year ending in March 2017 the company made a loss of £900,000 compared with a loss of £2.7m for the year before.

Tavistock reported in its results using adjusted earnings before interest, tax, depreciation and amortisation, arguing it is a better measure of its performance because it removes the distorting effects of one-off gains and losses such as those from acquisitions.

It pointed out that adjusted Ebitda rose by 421 per cent to £537,000 and that the company made a pre-tax profit for the first time.

Oliver Cook, the chairman of Tavistock, said: “There is a direct relationship between the group's profitability and the level of funds being managed within its own portfolios.

“There has been a marked improvement in the group's financial performance as a consequence of the sharp rise in discretionary FUM that was achieved during the year under review.

“As the group has a very high level of FUM retention, this positive impact will continue to be reflected in future years' results.”

Last year Tavistock agreed to buy IFA firm Abacus Associates Financial Services as well as PB Financial Planning.

Brian Raven, the chief executive of Tavistock, said the company’s focus is now on organic growth.

He said both the businesses Tavistock had acquired had continued to grow, which had pushed up the company’s performance.

Mr Raven said: “The most significant acquisition was Abacus. When that business joined the group they had 44 advisers and how they have 66. Recruitment into that business has been strong.”

Tavistock acquired Standard Financial, parent of troubed advice network Financial Limited, in February 2015, rescuing the firm after it suffered financial difficulties and was threatened by commercial failure.

But Tavistock came under fire for pursuing former appointed representatives of Financial Ltd for costs linked to advice which had previously been deemed suitable.

damian.fantato@ft.com