18:00 Thu 14 Feb 2019
Tavistock Investment - Pre-Close Trading Update
("Tavistock", or the "Company")
Pre-Close Trading Update
During the current financial year, headwinds, in the form of Brexit uncertainties, difficult global financial market conditions and investor anxiety, have slowed the pace at which the Company has been able to grow FUM (funds under discretionary management) and hence profitability. Unlike many competitors, FUM is increasing year on year and earnings (EBITDA) are expected to grow significantly, just not to the level management had hoped.
Whilst the Company's results for the current year will be lower than previously anticipated, they will still demonstrate meaningful growth and management retain their stated ambition to pay a maiden dividend.
Great strides have been made in the development of the business during the year, with the launch of two new protected products and significant investment in the development of i-stock, the Company's D2C smartphone app. Strategic partnerships have also been signed with Lighthouse Group and the
The new funds are protected by high watermark contractual guarantees from
In November, the Company announced the creation of Tavistock Law, the only financial advice business in the
In December, we announced a strategic alliance with Lighthouse Group plc (AIM; LGT) to establish an investment management service. This business will distribute the capital protection products under the Luceo brand (Lighthouse's proprietary range of investment solutions) to clients of Lighthouse through their adviser base.
It is estimated that Lighthouse Group currently has some
The Company's direct to consumer smartphone app, i-stock, will be launched by year end. This will provide customers with the ability to open both ISA and general investment accounts to invest in a protected portfolio with a 90% guarantee underwriting its highest ever value.
Progress achieved with the initiatives referred to above means that the Company is well positioned for continued growth next year and its prospects remain excellent.
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