Tavistock Investments has swung back into profit for the year ending March 2021, having lost £5.5m the year before.
According to its financial results, the group posted an operational profit of £1.2m for the year ended 31 March 2021.
During the period, the company completed a reorganisation project, focused on reducing its operational footprint and improving the operational performance of the business.
Three of its main entities within its advisory business – private clients, Tavistock Partnership and Tavistock Partners – have reported a turnaround in performance during the year, all contributing to positive earnings.
Funds under management increased for the seventh consecutive year, up 15% to £1.15bn for the period, while Tavistock Wealth saw a 7% increase in revenue to £5.9m.
The company received a cash boost of £20m from the sale of its subsidiary, Tavistock Wealth, during the period, which the board intends to use to make strategic buy backs of shares.
Tavistock Investments chief executive Brian Raven (pictured) said: “Our future prospects have been transformed by continued strong financial performance and entry into the strategic partnership with Titan Wealth. The sale of Tavistock Wealth to Titan for up to £40m in cash plus a 10-year earn-out vindicates our belief that the value we have built within the business remains largely unrecognised.
“The transaction proceeds equip us to accelerate the growth of the business, developing a much larger and more profitable distribution and wealth management group, to deliver enhanced value to shareholders.”
The company has announced a five-fold interim dividend increase to 0.05p, compared with 0.01p in 2019, which it said, “reflects strong financial performance of the business”.
