Tavistock revenues from its advice arm were unchanged after encouraging "poorer performing" appointed representatives to leave its network.
In an update published today (November 21), Tavistock reported gross revenues in its advisory business were "materially unchanged" at £11.6m in the six months to September.
This was despite a number of advisers leaving Tavistock's network over the past year as part of the company's policy to require poorer performing appointed representatives to leave the group.
Oliver Cooke, Tavistock's chairman, said its advice arm remained a key focus for the group.
Mr Cooke said: "Increased revenue, with improved profitability, generated by registered individuals has replaced the gross revenue lost as a consequence of having required a number of poorer performing appointed representative firms to leave the group.
"This is in line with the group's ongoing drive to minimise the risk associated with the group's advisory business and to appropriately match this risk against potential commercial reward."
When FTAdviser spoke with Tavistock in May it had 185 IFAs within its network, with 30 have left over the year while another 15 joined, but in today's update this had reduced again to 180 individual advisers.
The wider Tavistock group reported a slight increase in gross revenue in the six months to September, up from £14m last year to £14.3m this year.
Gross profits ticked up from £5.7m in September 2018 to £5.8m this year and its earnings before interest, taxes, depreciation, and amortization increased by 95 per cent to £1m - up from £516,000 in the same period last year.
The business also wrote off £133,000 as a result of terminating its strategic partnership with advice firm Lighthouse in May, following Quilter's acquisition of the latter.
Tavistock said it had written off the investment previously made in creating a range of bespoke share classes, the development of a dedicated website and supporting promotional literature designed specifically for its partnership with Lighthouse.
Brian Raven, chief executive of Tavistock Investments said: "We see these results as particularly encouraging given the backdrop of political uncertainty and the market headwinds that have impacted our industry and the country.
"Our investment management business and our work with key partners have continued to play an essential role in our success and profitability. It is difficult to predict how markets will react and how investors may behave in the months ahead.
"Political events might have a significant impact on our business, however, we believe our commitment to developing strong partnerships, as well as broadening our investment proposition, will drive further growth."
rachel.mortimer@ft.com
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