Business
Year-end trading update
Year-end trading update.
About this update from Tavistock Investments Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7440U\n Tavistock Investments PLC\n 08 April 2021\n \n \n \n \n \n Certain information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as amended by Market Abuse (Amendment) (EU Exit) Regulations 2019/310.\n Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \n \n \n \n \n Tavistock Investments Plc\n \n \n (\"Tavistock\" or the \"Company\")\n \n \n \n \n \n Year-end trading update \n \n \n \n \n 8 April 2021\n \n \n The Board of Tavistock is pleased to announce that the Company has achieved a strong close to the financial year just ended on 31 March 2021.\n \n Financials\n \n There is a limit to the amount of financial information the Board is permitted to release at this time, without incurring considerable additional expense, due to the Company being deemed to be in an \"Offer Period\" (as defined in the City Code on Takeovers and Mergers) as a result of the unwelcome approach from TEAM plc.\n \n During the year, the Board initiated a group-wide reorganisation project (announced in November 2020) and implemented other process improvement and cost cutting measures (announced in February 2021).\n \n Gross revenues in the Company's advisory business were in line with the last financial year, at £24 million, of which approximately 80% is annualised recurring revenue. The Board notes with interest that recently reported M&A transactions in the sector have been conducted at a multiple of between 3 - 3.5 times recurring advisory revenue.\n \n Tavistock's funds under management at 31 March 2021 have also remained similar to last year at approximately £1.1 billion and the Board notes that investment management businesses have recently changed ownership at values equivalent to between 2% and 4% of funds under management.\n \n The Company has, during the year ended 31 March 2021, benefited from the Government backed furlough scheme, which will clearly not be available in future years. However, the savings that the Board has achieved through the creation of a captive cell insurance facility will more than compensate for the absence of on-going furlough su...