LONDON (Alliance News) - Tavistock Investments PLC on Tuesday said its full year revenue came in GBP10.0 million ahead of market expectations, in its first full year of trading as a financial services group, though said its profit was hit by one-off charges.
Tavistock posted revenue of GBP29.9 million for the year ended March 31, up from GBP5.0 million a year earlier, but said its loss widened to GBP2.8 million from GBP983,000 during the year, due to a large increase in administrative expenses, to GBP8.4 million from GBP2.6 million, as well as in costs relating to acquisitions, to GBP1.4 million from a gain of GBP780,000 a year earlier.
This came as Tavistiock purchased Duchy Independent Financial Advisers Ltd and was also hit by an increase in the provision for the deferred consideration payment due to the vendors of Tavistock Wealth Ltd two years after the acquisition date, the company said.
However, the company noted that, its purchase of financial adviser Abacus Associated Financial Services Ltd on April 1 has now propelled the group, as a whole, into profitability and increased Tavistock's available cash resources by more than GBP1.3 million to over GBP4.0 million.
Tavistock said at the year end it had in excess of GBP4.00 billion of assets under influence and GBP460.0 million of assets under management, and noted that, as approximately 75% of the group's net revenues are represented by recurring income, future performance has become significantly more predictable.
Tavistock added that the Brexit vote has unsettled markets, but said as its portfolios are diverse in asset class, they continue to perform well.
"Tavistock has emerged from a period of consolidation more successful than ever, moving into profitability and increasing total revenue by a significant margin. We have exceeded market expectations and now look ahead to what I am confident will be another highly successful financial year," said Chief Executive Brian Raven.
"We intend to improve our service even further as we implement our new software support system. We also continue to have several significant growth opportunities, both organic and acquisitive, and we are well placed to take advantage of these," Raven added.
Shares in Tavistock were up 12% at 7.09 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Tavistock (TAVI)