(Alliance News) - Shares in Tavistock Investments PLC shot up on Wednesday as the company said trading in the first two months of its financial year has been ahead of expectations.
Tavistock shares were trading 14% higher at 1.60 pence each on Wednesday morning in London, but remain 24% lower than at the start of the year.
The fund management firm attributed the "strong" performance to its ACUMEN Protection Portfolios as well as swift action taken to mitigate the extent to which Covid-19 hurt the business.
Steps taken which allowed Tavistock to continue to trade profitably during the period of lockdown included quick adoption of plans which allowed employees to work from home, implementing cost cuts such waiving salaries by senior management, and the use of the UK government's furlough scheme.
The company said its newest fund, the ACUMEN ESG Protection Portfolio performed particularly effectively since its launch in December, with its net asset value having declined by less than 1%.
"The performance of the ACUMEN Protection Portfolios has been exceptional, underpinning the profitability of the group's investment management business. Our advisory business has also performed particularly well, stepping up to support clients in these challenging times and to mitigate the adverse effect that the lockdown is having on new business. The board maintains its focus on tight financial management and is confident the business will emerge from the current crisis in good shape," said Chief Executive Brian Raven.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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Tavistock (TAVI)