Tavistock Investments has moved into profit as a result of its £5.2m acquisition of Abacus Associates Financial Services.
Earnings on an EBITDA basis, adjusted to remove acquisition costs and share based charges, were £103,000 in the year to April 2016.
This compares to a loss of £352,000 the previous year.
The group says EBITDA was used because “it removes the distorting effect of one-off gains and losses that arise on acquisitions and the impact of non-cash items”.
Acquisition costs, not included in the profit figure, hit £1.4m over the year to April 2016. This includes deals for advice firms Abacus and Duchy Independent Financial Advisers.
The group says the Abacus deal has pushed it into profitability and boosted cash reserves.
In addition it says it has turned around Standard Financial Group – the parent of failed network Financial Ltd which it acquired in 2015 – which was losing £1m a year.
The group now employs around 320 advisers with 70,000 clients. It’s discretionary fund management business Tavistock Wealth has around £460m of assets under management.
It says all parts of the business, which includes compliance subsidiaries Tavistock Partners and Tavistock Financial, are now profitable.
Group chief executive Brian Raven says: “We are extremely proud of what we have achieved this year. Tavistock has emerged from a period of consolidation more successful than ever, moving into profitability and increasing total revenue by a significant margin.
“We have exceeded market expectations and now look ahead to what I am confident will be another highly successful financial year.
“We intend to improve our service even further as we implement our new software support system. We also continue to have several significant growth opportunities, both organic and acquisitive, and we are well placed to take advantage of these.
“Exciting times lie ahead for Tavistock, and I am looking forward to seeing the group continue its successful growth trajectory.”