Tavistock’s advice revenues increased by a third in the six months to September as the vertically integrated firm looks develop the use of centralised investment propositions in its new-look advice business.
A results announcement released today shows that revenues increased to £10.8m over the period, up from £8.1m a year before.
The firm, which also owns a discretionary investment management business, sold off 158-advisers in the Financial Limited network, along with the rest of its advice network, to Sanlam in August for £1m in cash after owning the business for just two and a half years.
Financial Limited collapsed after chief executive Charlie Palmer was fined twice by the FCA for compliance failings. At the time it was the seventh largest advice network in the UK.
Tavistock says: “Acquiring this business was a relatively inexpensive means of the company attaining critical mass and establishing itself as a national operator, at an early stage in its development.”
Tavistock rolled Financial Limited into a new advice business, Tavistock Financial Limited, which was all sold to Sanlam. The results reveal this division was making a loss of £21,000 when sold.
However, the results show that 58 of the Tavistock Financial advisers have moved to another part of the business, The Tavistock Partnership, which provides private client advice as well as compliance and oversight services to financial advice firms.
The results read: “These advisers are keen to develop a closer commercial relationship with the company, including recommending the use of its centralised investment proposition to their clients when appropriate to do so.”