LONDON, UK: Tavistock Investments (AIM:TAVI) has today acquired the entire issued and to be issued share capital of Precise Protect Limited, a profitable and fast growing insurance and protection business based in Bangor, Northern Ireland.

Precise Protect is regulated by the Financial Conduct Authority (the FCA) and Tavistock has received change in control consent for the Transaction from the FCA.

As announced by the Company previously, the current financial year is a period of transition for Tavistock as the Company focuses on the continued development of its innovative commercial operating model and replacement of the contribution from its investment management business, which was sold to Titan Wealth Holdings Limited in August 2021.

Precise Protect has a network of over 200 advisers working with more than 37,000 UK clients, with an average age of under 40. Precise offers its clients a wide range of products (including life and critical illness cover, private medical insurance, personal injury and income protection), several of which were developed in-house and are unique to the firm. In the year ended 31 October 2022, Precise Protect reported a profit before taxation of £1.45 million on turnover of £6.5 million and net assets of £1.23 million.

Following the Transaction, the Tavistock group will have more than 400 advisers and other business introducers looking after over 110,000 private clients with estimated assets of over £5.0 billion, as well as 350 corporate and affinity clients with some 16,000 employees.

The total consideration for the Transaction (assuming the achievement of all performance related earn-outs) will amount to up to some £7.0 million. £250,000 of the consideration is to be settled through the issue of 3,571,429 new ordinary shares of 1 penny each in the capital of Tavistock Investments Plc at an issue price of 7p per share, with the balance being settled in cash from the Company’s existing cash resources and the Company drawing down from the acquisition debt facility provided by the Bank of Ireland.

£2.75 million of the cash consideration is being paid now, together with the issue of the Consideration Shares (conditional on admission to trading on AIM). The balance of the cash consideration, totalling up to some £4.0 million, is payable in three subsequent annual instalments, the value of each being linked to the future performance of the Precise Protect business.

Tony Close, Precise Protect’s Managing Director, said: “Precise Protect’s revenues and EBITDA have grown rapidly and we remain excited about its prospects. However, we are very pleased to be joining the Tavistock group which will enable us to offer a much wider range of services to our clients, as well as deliver a development pathway for advisers and career development opportunities for staff.”

Brian Raven, Tavistock’s Chief Executive, said; “We are delighted to welcome Tony and his team into the group and to add Precise Protect’s products to the wider group’s service proposition. We look forward to benefitting from numerous synergies, including operational cost savings, increased profitability and new business leads.”

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