Business
Acquisition, Share Subscription and Debt Facility
Acquisition, Share Subscription and Debt Facility.
About this update from Tavistock Investments Plc
[{"type":"text","content":"\n \nRNS Number : 6363S Tavistock Investments PLC 21 March 2016 \n\nTavistock Investments plc\nExpansion Continues with Abacus Associates\nShare Subscription & New Debt Facility\n \nTavistock Investments plc (\"Tavistock\" or the \"Company\"), the integrated financial services business, is pleased to announce that today it has entered into an agreement that will lead to Abacus Associates Financial Services Limited (\"Abacus\") joining the Tavistock Group. It will do so as a wholly owned subsidiary, with effect from 1 April 2016. \nAbacus is an independent financial advisory business headquartered in Hereford, with 45 predominantly self-employed financial advisers covering the North East, the Midlands and the South West of the country. Abacus is a directly authorised firm that is regulated by the Financial Conduct Authority (the \"FCA\") with reference number 230342. FCA approval for the transaction has been received.\nIn its unaudited accounts for the year ended 31 January 2016, Abacus reported pre-tax profits of £781,000 on turnover of £4.5 million. It also reported net assets of £1.59 million, which included £1.23 million in cash. The company's assets under influence are estimated to exceed £650 million, of which some £250 million are managed directly by Abacus on an advisory basis.\nMalcolm Harper, Abacus' Founder and Managing Director, commented: \"I've been searching for the right partner to help me take Abacus to the next level, and Tavistock impressed me as the best option. They provide a range of discretionary investment solutions that will suit many of our clients and share our ethos for transparency and quality of customer care. The transaction has also ensured the potential for a retirement exit for each of our advisers at a time that suits them. I will remain as a significant stakeholder in the enlarged Group and am looking forward to working with the Tavistock team.\"\nTavistock will retain the Abacus brand and Malcolm will continue to lead the business, as well as take on wider responsibility as part of the Group's senior management team.\nThe fixed initial consideration for the transaction is £5.165 million, to be satisfied by the payment of £4.165 million at completion, of which £2.535 million is to be settled in cash, £0.13 million through the adoption of a debt obligation, with the balance ...