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Tavistock assets soar as losses plummet

Tavistock assets soar as losses plummet

Tavistock Investments has increased its discretionary funds under management by 130 per cent to £745m as its losses continue to fall.

The company increased its revenues by 40 per cent to £12.4m in the six months ending in September and saw its earnings before interest, tax, depreciation and amortisation swing back into the black after a 426 per cent increase, bringing them to £137,000.

For the six month period Tavistock posted a loss of £10,000, down 99 per cent from the loss for the same period last year.

Meanwhile Tavistock Wealth's revenue in the six-month period was £1.52m, compared with revenue of £1.66m for the full year to 31 March 2017.

Brian Raven, chief executive of Tavistock, said: "We are continuing to make extremely good progress. I am pleased with the interim results in general, and with the organic growth of FUM into Tavistock Wealth in particular.

"Our business model is now firmly established and the company's prospects are excellent."

Tavistock's advice businesses saw gross revenues grow by 33 per cent to £10.8m.

In August Sanlam bought Tavistock Financial’s network of 158 advisers in a £1m deal to boost its presence in the advice marketplace.

During the period Tavistock said it had incurred £160,000 of reorganisation costs, including the costs associated with the sale of Tavistock Financial which it said had affected its results.

The company said it had put the £1m received for the network in its cash resources, which stood at £2.74m before this was taken into account.

Oliver Cooke, the executive chairman of Tavistock, said the company was making "rapid progress".

He said: "It is anticipated that with continued organic growth, the Ebitda contribution from the group's advisory businesses will become sufficient to cover all of the group's operating costs. The group's profitability will then be directly linked to the profitability of its investment management business."

damian.fantato@ft.com