Tavistock Investments PLC Pre-Close Trading Update (9466P)
February 14 2019 - 2:00AM
UK Regulatory
TIDMTAVI
RNS Number : 9466P
Tavistock Investments PLC
14 February 2019
Tavistock Investments Plc
("Tavistock", or the "Company")
Pre-Close Trading Update
14 February 2019
Tavistock Investments Plc (AIM-TAVI) provides investors with a
trading update
During the current financial year, headwinds, in the form of
Brexit uncertainties, difficult global financial market conditions
and investor anxiety, have slowed the pace at which the Company has
been able to grow FUM (funds under discretionary management) and
hence profitability. Unlike many competitors, FUM is increasing
year on year and earnings (EBITDA) are expected to grow
significantly, just not to the level management had hoped.
Whilst the Company's results for the current year will be lower
than previously anticipated, they will still demonstrate meaningful
growth and management retain their stated ambition to pay a maiden
dividend.
Great strides have been made in the development of the business
during the year, with the launch of two new protected products and
significant investment in the development of i-stock, the Company's
D2C smartphone app. Strategic partnerships have also been signed
with Lighthouse Group and the Law Society. All of these initiatives
are expected to bear fruit during the next financial year.
The new funds are protected by high watermark contractual
guarantees from Morgan Stanley & Co International plc. Initial
market response to these funds has been extremely positive and the
current challenge is to organise distribution to the widest
possible audience, to which end considerable progress is being
made.
In November, the Company announced the creation of Tavistock
Law, the only financial advice business in the UK to have received
an endorsement by the Law Society. Its focus is on assisting
solicitors engaged is trust and in court of protection work, where
investment in Tavistock's protected funds would often be
particularly beneficial.
In December, we announced a strategic alliance with Lighthouse
Group plc (AIM; LGT) to establish an investment management service.
This business will distribute the capital protection products under
the Luceo brand (Lighthouse's proprietary range of investment
solutions) to clients of Lighthouse through their adviser base.
It is estimated that Lighthouse Group currently has some GBP5
billion of assets under advice and places about GBP1 billion of new
investment and pension fund investments on behalf of clients each
year. The process of engaging with Lighthouse's 400 advisers has
now begun and prospects are most encouraging.
The Company's direct to consumer smartphone app, i-stock, will
be launched by year end. This will provide customers with the
ability to open both ISA and general investment accounts to invest
in a protected portfolio with a 90% guarantee underwriting its
highest ever value.
Progress achieved with the initiatives referred to above means
that the Company is well positioned for continued growth next year
and its prospects remain excellent.
ENQUIRIES
Tavistock Investments Plc
Oliver Cooke / Brian Raven +44 (0)1753 867000
Arden Partners Plc - Nominated Adviser
Paul Shackleton +44 (0)20 7614 5900
Allenby Capital Limited - Broker
Nick Naylor / Nick Athanas +44 (0)20 3328 5656
Vested - PR Partner
Elspeth Rothwell +44 (0)20 3890 8118
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END
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