XB-5979 Annual Report FINAL YE311211 (Draft V15)

TAVISTOCK INVESTMENTS PLC

REPORT AND FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30SEPTEMBER 2016

UNAUDITED

Company Number: 05066489

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TAVISTOCK INVESTMENTS PLC

REPORT AND FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30SEPTEMBER 2016

CONTENTSPage

Chairman's statement1- 2

Consolidated statement of comprehensive income3

Consolidated statement of financial position4

Consolidated statement of changes in equity5

Consolidated statement of cash flows6

Notes forming part of the consolidated financial statements7 - 9

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TAVISTOCK INVESTMENTS PLC

CHAIRMAN’S STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016

On the 28th November 2016, the Company announced that it had received all necessary approvals from the Financial Conduct Authority to enable it to complete the acquisition of Price Bailey Financial Services Limited, referred to in more detail below, and having now completed that transaction, I am pleased to report on the considerable progress that the Company has made during the six-month period to 30 September 2016.

Tavistock Investments is, at heart, an investment management business that has established its own distribution channel through the selective acquisition of five financial advisory businesses. These advisory businesses collectively service over 70,000 retail clients throughout the UK and each business is trading profitably.

The profitability of the Group’s advisory operations, as a whole, was greatly enhanced by the acquisition of Abacus Associates Financial Services Ltd, in April 2016. The Group then employed a specialist recruitment manager to augment the organic growth of the advisory businesses and, during the brief period under review, the number of advisers within Abacus has grown by over 45% to 65.

Advisory profitability has been further enhanced after the end of the period under review, by the acquisition of the multi-award winning business Price Bailey Financial Services Limited, in November 2016. This acquisition has the added strategic benefit of enabling the Group to offer its investment management services to a new audience of higher net worth clients.

FUM (funds under management) have more than doubled over the last year to £690 million, with £540 million being managed on a discretionary basis.

Tavistock Wealth, the Group’s investment management business also trades profitably and despite turbulent market conditions following the BREXIT vote, Donald Trump’s election, the continued weakening of sterling and a major sell off in bond markets, Tavistock Wealth’s range of risk progressive model portfolios has continued to perform well.

Having established a successful two-year track-record managing assets for clients of the Group’s advisory businesses, the Group is now investing in the personnel and marketing to offer Tavistock Wealth’s services to firms outside of the Group. Whilst it is still too early to have reaped rewards from this investment, early indications are most encouraging.

Financial Performance

As can be seen from the table above, with an increase in gross revenues of just 6%, from £15.9 million in the equivalent period last year to £16.9 million in the period under review, adjusted EBITDA profits have improved by £172k, from a loss of £63k in the equivalent period last year to a profit of £109k this time. The reported loss from operations fell by £134k, or 16%, from £822k in the equivalent period last year to £688kin the period under review. At 30 September 2016, the Group had net assets of £14.91 million (30 September 2015:£10.33 million) which included cash resources of £3.8 million (30 September 2015:£4 million).

TAVISTOCK INVESTMENTS PLC

CHAIRMAN’S STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016

The Future

The Board’s strategy is to focus on the organic development of the business and to make selected strategic acquisitions where considered appropriate.

In this regard, the Board will continue to focus on improving the operational efficiency of the Group’s existing businesses, removing cost and reducing risk where possible. We will also grow the advisory businesses through additional recruitment and the wealth management business by increasing the level of funds managed on a discretionary basis. This will be achieved both within the Group and by offering our investment management services to outside firms.

It remains our objective to introduce a dividend stream for the benefit of the Company’s shareholders at the earliest opportunity. However, in light of the heavy investment on recruitment and external business development, the earliest opportunity would now appear to be during the next financial year.

I would like to take this opportunity to welcome once again the new members of our senior management team and to acknowledge and thank all of our staff for the considerable efforts that they have continued to make. I look forward to updating shareholders on further progress in due course.

Oliver Cooke

Executive Chairman

23 December 2016

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TAVISTOCK INVESTMENTS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016

The notes on pages 7 – 9form part of the group financial statements

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TAVISTOCK INVESTMENTS PLC COMPANY NUMBER: 05066489

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30SEPTEMBER 2016

ASSETS

Non-current assets

Total non-current assets

17,349

12,086

Current assets

The financial statements were approvedby the Board and authorised for issue on 23December 2016.

Oliver Cooke

Executive Chairman

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The notes on pages 7 - 9form part of the group financial statements.

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TAVISTOCK INVESTMENTS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016

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The notes on pages 7 -9form part of the group financial statements.

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TAVISTOCK INVESTMENTS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016

The notes on pages 7- 9form part of the group financial statements.

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TAVISTOCK INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016

1.ACCOUNTING POLICIES

Basis of preparation
The interim financial statements have been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) adopted by the European Union.
The accounts have been prepared in accordance with accounting policies that are consistent with the March 2016 Report and Accounts and that are expected to be applied in the Report and Accounts of the year ended 31 March 2017. There are new or revised standards or interpretations that apply to the period beginning 1 April 2016 but they do not have a material effect on the financial statements for the period ended 30 September 2016.
This report is not prepared in accordance with IAS 34, which is not mandatory. The financial information does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. Statutory accounts for Tavistock Investments Plc for the year ended 31 March 2016 have been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

2.SEGMENTAL INFORMATION

A segmental analysis of revenue and expenditure for the period is:

The segmental analysis above reflects the parameters applied by the Board when considering the Group’s monthly management accounts. The Directors do not consider a division of the balance sheet to be appropriate or useful for the purposes of understanding the financial performance and position of the Group.

During the period under review the Group operated, and earned revenueexclusively within the UK.

TAVISTOCK INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016

ACQUISITIONS DURING THE PERIOD

Abacus Associates Financial Services Limited

On 1 April 2016, the Group acquired 100% of the ordinary shares in Abacus Associates Financial Services Limited, an independent financial advisory company, for a total estimated consideration of £6.165m, of which £2.535m was settled in cash, £0.13m through the adoption of a debt obligation, £1.5m through the issue to the vendor of 20m new ordinary shares of 1p each at an issue price of 7.5p per share, £1m is to be settled in cash on 1 April 2017, and £1m is the estimated value of a performance related payment to be settled in cash in July 2018.

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TAVISTOCK INVESTMENTS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016

6.EVENTS AFTER THE DATE OF THE STATEMENT OF FINANCIAL POSITION

On 30 November 2016 the Company completed the acquisition of Price Bailey Financial Services Limited, the multi award winning independent financial advisory arm of Price Bailey LLP, a firm of Chartered Accountants with five offices in the East of the United Kingdom.

The consideration for the transaction was £3.6m, of which £2.0mwas settled in cashand £0.95m was satisfied through the issue of new ordinary shares.A further fixed sum of £0.15mtogether with a further variable performance related payment of up to £0.5m is payable in cash in November 2017.

On the same date, the Company announced that it had raised a total of £2.1m, before expenses, through the issue to new and to existing investors of 70m new ordinary shares of 1p each at an issue price of 3p per share.

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