Vertically integrated advice and fund management firm Tavistock Investments has pointed to a “challenging” adviser recruitment market as it continues its efforts to increase headcount and drive revenue.
In results for the last six months published this morning, Tavistock says it is now approaching 200 advisers in the business, but has had to spend more money to get them through the door.
The results read: “Adviser recruitment has proved challenging across the UK market and this has necessitated a greater reliance on the use of external recruitment agencies with a consequent impact on the cost base during the period.
“However, our advisory businesses, and in particular our high net worth business, Tavistock Private Client, have managed to attract a number of promising additions to their teams and we look forward to their contribution being reflected in the future.”
Tavistock owns both an investment management business, Tavistock Wealth, alongside a support service offering for advisers, the Tavistock Partnership, as well as offering financial advice through Tavistock Private Client.
The results show Tavistock has increased gross revenues from advice by 7 per cent from £10.8m to £11.6m.
Overall group gross revenue increased by 14 per cent, with a 19 per cent increase in gross profit to £5.7m.
Tavistock has grown its advice business through a number of acquisitions in recent years, including Price Bailey Financial Services in the south of England, Abacus Associates Financial across the UK, and troubled network Financial Limited.
However, it sold the network part of the business that housed the former Financial Limited advisers to Sanlam last year.
Tavistock now has around £3.5bn in assets under advice, today’s results show.