Tavistock has turned a profit for the first time on the back of increased flows into its discretionary solutions and increased support service sales.
The vertically integrated firm, which offers advice, fund management, and compliance, administration and accounting services, says it has seen a 41 per cent increase in revenues generated by ongoing advisory business over the past year to reach £25m.
This includes revenue from private client adviser Tavistock Private Client but also the support services to appointed representative firms and registered individuals through Tavistock Partners and The Tavistock Partnership, respectively.
The results exclude advice from the Financial Limited network that Tavistock acquired but then sold to Sanlam last year.
Tavistock Wealth, which offers portfolio management services, is now used by 23 firms not owned by Tavistock, it says, with a 44 per cent increase in discretionary funds under management
The majority of flows come from Tavistock advisers, chief executive Brian Raven tells Money Marketing.
A 47 per cent increase in total revenues to £29m helped drive a maiden pre-tax profit of £221,000.
Raven says: “We are continuing to deliver increases in funds under management and to develop our advisory business. The strong organic growth we have seen this year is recognition of the trust our clients, advisers and strategic partners are placing in our business.”
He says: “Our commitment to develop new products and services that respond to evolving investors’ needs, such as greater capital protection, will continue to be a key driver for the group.”
He tells Money Marketing: “We are focused on organic growth, but that doesn’t rule out the prospect of future acquisitions if they present themselves.”