Tavistock Investments (TAVI)

Sector:

Leisure Products

Index:

FTSE AIM All-Share

 6.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 6.60
  • 52 Week Low: 2.50
  • Currency: UK Pounds
  • Shares Issued: 557.68m
  • Volume: 1,231,613
  • Market Cap: £33.46m

Tavistock shares surge on new partnership with Titan Wealth

By Josh White

Date: Monday 14 Jun 2021

LONDON (ShareCast) - (Sharecast News) - Tavistock Investments has entered a 10-year strategic partnership with Titan Wealth it announced on Monday, with Titan also agreeing to acquire Tavistock's multi-asset manager Tavistock Wealth (TWL), which has more than £1bn of funds under management, for consideration of up to £40m in cash and a 10-year earn out.
The AIM-traded firm said Titan was established by a "highly-experienced" management team with "strong" financial backing.

Its objective was to become a large-scale provider of execution, settlement, custody and administration services to the asset and wealth management sector.

In addition to acquiring TWL, Titan was also seeking to acquire Global Prime Partners (GPP), which provides platform services to institutional clients and fund managers, with £2bn in assets under administration.

The company said the primary terms of the partnership, including the sale of TWL, were that Tavistock would act as Titan's retail distribution partner, with the partnership set to accelerate the growth of Tavistock's wealth management business, both organically and through an acquisition programme.

Tavistock currently has about £4bn of funds under advice.

Titan would acquire TWL for a consideration of up to £40m, or 6.58p per Tavistock share based on the current number of shares in issue, to be paid in cash, as well as a 10-year earn-out.

It said £20m would be paid on completion, with a further £20m paid in equal annual instalments over the following three years, linked to the maintenance of TWL's revenues.

Under the strategic partnership, Tavistock said it would also receive additional payments over a 10-year period, equivalent in value to 50% of future net income on any increased funds under management within TWL's 'Acumen UCITS' funds.

A new company within the Tavistock Investments Group, Tavistock Asset Management, would continue to market the group's centralised investment proposition, which would include both the Acumen UCITS funds and the company's model portfolio service.

Tavistock Asset Management would retain Titan as investment manager for the model portfolio service.

While becoming part of Titan, Tavistock said its chief investment officer John Leiper and his team would continue to work "closely" with the company and its advisers.

In its audited accounts for the year ended 31 March 2020, TWL reported a pre-tax profit of £2.3m from gross revenues of £5.6m, and gross assets of £5.2m.

The transaction would "greatly enhance" Tavistock's cash resources, the board said, and would enable it to minimise shareholder dilution as it embarked on an accelerated acquisition programme.

Tavistock's directors expected that the contribution to the firm's profitability from the programme would "significantly outweigh" the loss of TWL's contribution to the company in the short-to-medium term.

"This is a great opportunity for both companies," said chief executive officer Brian Raven.

"Whilst Tavistock Wealth is becoming part of Titan, we will still be working closely with our highly successful investment team.

"The partnership with Titan endorses our corporate strategy and will enable us to accelerate the growth of our business and deliver maximum value to our shareholders."

At 1513 BST, shares in Tavistock Investments were up 58.79% at 4.21p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

TAVI Market Data

Currency UK Pounds
Share Price 6.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 6.60
52 Week Low 2.50
Volume 1,231,613
Shares Issued 557.68m
Market Cap £33.46m

TAVI Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
59.46% below the market average59.46% below the market average59.46% below the market average59.46% below the market average59.46% below the market average
9.09% below the sector average9.09% below the sector average9.09% below the sector average9.09% below the sector average9.09% below the sector average
Price Trend
98.33% above the market average98.33% above the market average98.33% above the market average98.33% above the market average98.33% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
19.91% below the market average19.91% below the market average19.91% below the market average19.91% below the market average19.91% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average
Growth
13.95% below the market average13.95% below the market average13.95% below the market average13.95% below the market average13.95% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average

TAVI Dividends

  Latest Previous
  Interim Final
Ex-Div 16-Sep-21 27-Jun-19
Paid 04-Oct-21 12-Jul-19
Amount 0.050p 0.010p

Trades for 26-May-2022

Time Volume / Share Price
12:08 26,423 @ 5.95p
10:28 162,704 @ 6.14p
10:50 1,400 @ 6.20p
10:42 16,097 @ 6.14p
10:33 100,000 @ 6.00p

TAVI Key Personnel

Chair Oliver Charles Cooke
CEO Brian Raven

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