AIM companies Tavistock Investments and Lighthouse Group are establishing an investment management service.
The new business will develop and distribute investment products and services under the Luceo brand (Lighthouse’s proprietary range of investment solutions) to clients of Lighthouse through that group’s adviser base. These will include Tavistock’s recently launched capital protection products and may be extended to include other investment solutions available through Tavistock, including its model portfolio service.
Tavistock, which last week reported its interim results, has also raised £1.25m of additional working capital, before costs, through the issue of 38,109,756 new ordinary shares of 1p each at a subscription price of 3.28p per share.
The largest participant was Lighthouse which has agreed to subscribe £1m to acquire 30,487,805 shares, representing a 5.30% holding in the enlarged share capital of the Company.
The fundraising will enable Tavistock to replace an existing £2m debt facility with a new £2m five-year facility from NatWest Bank at a lower rate of interest. It is estimated that Tavistock will save some £100,000 per annum in interest as a consequence, and the fundraising also strengthens its regulatory capital position as the business continues to grow.
Tavistock’s interim results revealed continued growth of the investment and advisory businesses, the launch of new protected products guaranteed by Morgan Stanley, the creation of Tavistock Law (a specialised business endorsed by the Law Society as its preferred provider of investment advice) and plans to launch a D2C app next year.