Tavistock Group  

Tavistock swings into profit for the first time

Tavistock swings into profit for the first time

Tavistock Investments made its first ever pre-tax profit in the 12 months to the end of March 2018.

The company made a pre-tax profit of £221,000, compared to a pre-tax loss of £1.2m in the previous year.

Revenues were also up to £28.8m, compared to £19.5m for the year before.

Meanwhile Tavistock has seen its funds under management increase for 14 consecutive quarters, with a 44 per cent increase in discretionary assets over the year to £866m.

Brian Raven, chief executive of Tavistock, said: "We are continuing to deliver increases in funds under management and to develop our advisory business.

"The strong organic growth we have seen this year is recognition of the trust our clients, advisers and strategic partners are placing in our business.

"Our commitment to develop new products and services that respond to evolving investors' needs, such as greater capital protection, will continue to be a key driver for the group.

"I am very proud of what the team has achieved this year and confident in our future growth prospects."

During the year Tavistock sold its network business, Tavistock Financial, to Sanlam.

The company said this "significantly" reduced the company’s regulatory capital obligations and provided £1m of cash.

Shortly before the sale was announced, 58 advisers in Tavistock Financial transferred to another network in the group, the Tavistock Partnership.

Meanwhile 23 firms outside Tavistock’s ownership now use its investment services.

Oliver Cooke, chairman of Tavistock, said: "Based upon the anticipated revenue to be generated on existing FUM from the start of the current year, and upon the group's current cost base, it would be reasonable to anticipate that the company will report significantly improved performance for the current financial year.

"Whilst there can be no certainty as to the level, or timing, of future fund inflows, any continued growth in the level of FUM will further enhance those results."

damian.fantato@ft.com