9th Feb 2021 09:28
(Alliance News) -Â Tavistock Investments PLC on Tuesday said its financial performance during the pandemic has been "resilient", and it expects to report full-year earnings growth.
Shares in Tavistock were up 8.4% at 2.06 pence in London on Tuesday.
"The primary impact of the pandemic and associated lockdowns has been a reduction in new Advisory business levels, which are influenced by advisers' ability to meet with clients. However, because the company benefits from a high level of recurring income, the board currently expects to report gross revenues for the financial year broadly in line with last year," the Bracknell-based fund manager said.
However, Tavistock has made good progress with its rationalisation exercise, resulting in the removal of a "significant level" of cost from the business. As a result, Tavistock expects earnings before interest, taxes, depreciation and amortisation for the financial year to March 31 "significantly ahead" of last year.
The company added that it recently entered into its tenth client acquisition agreement, using its own cash resources to purchase books of business from advisers who are retiring from the industry. These books of business generate recurring income ranging from GBP25,000 per year at the low end to almost GBP600,000 at the high end.
By Lucy Heming;Â [email protected]
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