Private client investor Tavistock Investments has announced a massive rise in funds under management over the past year, as the firm posted a 332 per cent increase to £769m.
At the same time, the firm generated a 22 per cent increase in revenue to £36.4m and a 421 per cent rise in earnings before interest, tax, depreciation and amortisation (Ebitda) to £537,000.
Tavistock's chairman Oliver Cooke said the firm had “reached an inflection point”, with the growth in funds leading to increased margins and the generation of cash from operations.
“We have made significant progress across all key areas of the business and established a solid foundation for future success. This is the product of a robust business model and the hard work of a strong operational team,” said chief executive Brian Raven.
However the company did still make a loss of £900,000 overall, although this was down by 67 per cent from the £2.78m a year previously.
“The benefit of our investments in organic growth may not be seen until the 2018-to-19 financial year. However, even modest levels of benefit, together with continued hard work from the management team, will enable the company to report improved results in the year to come,” said Cooke.
He said the firm's “disciplined approach” to global diversification across asset classes, its “cautious approach” to the UK bond market and the use of currency hedging had boosted the investment portfolios.
Tavistock has four arms focusing respectively on portfolio management, adviser outsourcing services, adviser compliance services and wealth management.
It has acquired two financial advisory businesses recently, namely Abacus Associates and PB Financial Planning.