Tavistock Investments PLC Purchase of a minority shareholding in LEBC (8186X)
January 10 2022 - 2:00AM
UK Regulatory
TIDMTAVI
RNS Number : 8186X
Tavistock Investments PLC
10 January 2022
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
Tavistock Investments Plc
("Tavistock", the "Group" or the "Company")
Purchase of a minority shareholding in LEBC Holdings Limited
10 January 2022
Tavistock (AIM:TAVI) is pleased to announce that it has entered
into an agreement to purchase 21% of the issued share capital of
LEBC Holdings Limited ("LEBC"). LEBC is an independent financial
advisory group that has three wholly owned subsidiaries, two of
which are regulated by the Financial Conduct Authority (the "FCA"),
LEBC Group Limited and Aspira Corporate Solutions Limited, and a
third which is unregulated, LEBC Hummingbird Limited.
By acquiring this shareholding, Tavistock will become a
"controller" (as per the FCA's rules) of each of LEBC's regulated
subsidiaries and completion of the transaction is therefore
conditional upon receipt of the FCA's approval.
Tavistock has agreed to acquire all of the 212,738 A ordinary
shares of GBP0.01 each ("A Ordinary Shares") in LEBC for a total
cash consideration of GBP10.0 million from Mrs Marie McVitie, the
widow of LEBC's founder and former Chief Executive, Mr Jack
McVitie. GBP6.0 million of the consideration will be paid upon
completion and GBP4.0 million will be paid on a date that is twelve
months following completion. Ownership of the A Ordinary Shares
entitles the holder to a right of first refusal should any of the
company's other shareholders wish to dispose of their shares.
The LEBC group was established in 2000 as a provider of
financial planning and consultancy services to private and
corporate clients. LEBC employs 46 financial planners, has over
75,000 clients and an estimated GBP5 billion of assets under
advice, of which over GBP500 million is invested in LEBC's model
portfolio service. LEBC's draft accounts for the financial year
ended 30 September 2021 show that it achieved gross revenues of
approximately GBP15.0 million and generated EBITDA of approximately
GBP3.3 million. At 30 September 2021, LEBC had gross assets of
GBP9.6 million and net assets of GBP5.6 million.
LEBC's largest shareholder is the AIM quoted company, B. P.
Marsh & Partners Plc ("BPM") which owns 60% of LEBC's voting
rights. BPM is a specialist investor in early-stage financial
services intermediary businesses in the UK and overseas. BPM has
invested in over 50 businesses since it was founded in 1990 and its
management team has a wealth of experience and a well-developed
network within the financial services sector.
Derek Miles, LEBC's Managing Director, said ; "We are delighted
to welcome Tavistock as a shareholder within our rapidly growing
business. We expect EBITDA to more than double this financial year
and look forward to a long and successful partnership with
Tavistock, to our mutual benefit."
Brian Marsh, BP Marsh & Partners' Chairman, said ; "We
welcome Tavistock as an investment partner in LEBC and look forward
to working closely together to accelerate the development of the
business."
Brian Raven, Tavistock's Chief Executive, said ; "We look
forward to working in close partnership with B. P. Marsh &
Partners and with LEBC's management team. The initial focus will be
on accelerating LEBC's commercial development and operational
efficiency, as well as enhancing its oversight and compliance
regime through the introduction of Tavistock's proprietary
risk-based processes and procedures."
For further information:
Tavistock Investments Plc Tel: 01753 867000
Oliver Cooke
Brian Raven
Allenby Capital Limited Tel: 020 3328 5656
(Nominated adviser and broker)
Corporate Finance:
Nick Naylor, Liz Kirchner, Freddie
Wooding
Sales and Corporate Broking:
Tony Quirke
Powerscourt Tel: 07711 380 007
Gilly Lock 020 7250 1446
Chloe Retief
About Tavistock Investments Plc
Tavistock Investments Plc is an AIM listed financial services
group that has over 175 advisers across the UK helping 40,000+
clients look after more than GBP4 billon of investments. The
Company was established in 2013.
Tavistock's advisory business operates throughout the UK. The
Tavistock Partners network supports over 130 Registered Individuals
(IFAs), providing compliance, administration, technology, training
and accounting services. The Tavistock Partnership is a network
that does the same for 30 Appointed Representative firms. Tavistock
Private Client provides wealth management and financial planning to
high-net-worth individuals.
The Tavistock Platform, launched in 2020, provides a low-cost
platform service to the Group's advisory and investment
clients.
Tavistock Asset Management ("TAM") markets the Group's
centralised investment proposition, both the ACUMEN UCITS funds and
the Group's Model Portfolio Service ("MPS"). In June 2021 the
Company announced its entry into a ten-year strategic partnership
with Titan Wealth Holdings Limited ("Titan Wealth"). Tavistock acts
as Titan Wealth's retail distribution partner. TAM retains Titan
Wealth as investment manager for the MPS
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