Lighthouse Group PLC Strategic Investment (3013H)
November 14 2018 - 2:37AM
UK Regulatory
TIDMLGT
RNS Number : 3013H
Lighthouse Group PLC
14 November 2018
This announcement contains price sensitive information for the
purposes of Article 7 the Market Abuse Regulations EU 596/2014
14 November 2018
Lighthouse Group plc
("Lighthouse" or "the Group")
Strategic Investment
Lighthouse Group plc (AIM: LGT), the national financial advisory
group, is pleased to announce that it has today made a subscription
of GBP1 million in cash for 30,487,805 new ordinary shares at 3.28
pence per ordinary share in Tavistock Investments plc ("Tavistock")
(AIM:TAVI) (the "Subscription").
This follows on from, and is in conjunction with, the Strategic
Agreement between Lighthouse and Tavistock announced earlier
today.
The Company's Subscription is part of Tavistock's wider
fundraising of GBP1.25 million, with the remaining GBP250,000 being
provided by existing shareholders and management. The new ordinary
shares in Tavistock are being issued at 3.28 pence per share, being
a ten per cent. discount to the closing mid-market price on 12
November 2018. Lighthouse's holding will represent 5.30 per cent.
of the enlarged share capital of Tavistock. The Subscription is
conditional upon admission of the shares to trading on AIM, which
is expected to be on 19 November 2018. Lighthouse will use existing
resources to fund the Subscription.
Tavistock is a financial advisory and fund management business.
In its recent interim financial statements for the six months ended
30 September 2018 Tavistock reported GBP941 million assets under
management through its own fund range, an increase of GBP196
million or 26 per cent. since September 2017 and GBP617 million or
190 per cent. since September 2016. It also reported an increase in
on-going business revenues of 13 per cent. to GBP14.0 million and
an increase of 276 per cent. in EBITDA to GBP516,000. In its annual
financial statements for the year ended 31 March 2018, Tavistock
reported an increase in assets under management of 44 per cent. to
GBP866 million, an increase in on-going business revenues of 47 per
cent. to GBP28.8 million and an increase of 91 per cent. in
underlying EBITDA (after reorganisation costs) to GBP734,000. It
also reported profit before tax for the year of GBP221,000.
Malcolm Streatfield, Chief Executive Officer of Lighthouse
commented: "Lighthouse is a successful financial advisory business
with particular expertise in providing advice to members of its
affinity group partners whose aggregate membership is in excess of
6 million individuals. In our announcement earlier today I gave
details of the Strategic Agreement that we have entered into with
Tavistock to develop further effective, risk-managed investment
solutions for our customers utilising Tavistock's established
in-house investment solutions within our Luceo Asset Management
Range in October 2016. This investment will serve to further
underpin what I believe will be a successful working relationship
between Lighthouse and Tavistock."
Brian Raven, Tavistock's Chief Executive, commented: "This
strategic investment by Lighthouse, building on the strategic
relationship between Lighthouse and Tavistock announced earlier
today, is a significant development for both groups. We are
delighted to welcome Lighthouse as a shareholder and look forward
to achieving considerable success together in the coming
years."
For further information, please contact:
Lighthouse Group plc
Malcolm Streatfield - Chief Executive Tel: +44 (0) 20 7065 5640
Peter Smith - Group Finance Director
investorenquiries@lighthousegroup.plc.uk www.lighthousegroup.plc.uk
finnCap Limited
(Nominated Adviser and Broker to the Tel: + 44 (0) 20 7220
Company) 0500
Corporate
Julian Blunt /Emily Watts/Hannah Boros
ECM
Alice Lane
Media enquiries:
IFC Advisory Limited
Graham Herring/ Heather Armstrong/ Tel: +44 (0) 20 3934 6630
Florence Chandler
heather.armstrong@investor-focus.co.uk www.investor-focus.co.uk
About Lighthouse Group plc
Lighthouse has been listed on AIM since 2000 as an integrated
financial services company for investors, coupled with significant
scale in terms of distribution through financial advisers and
wealth managers and its fully diversified business model.
As one of the UK's largest autonomous financial advice and
wealth management groups, Lighthouse provides a comprehensive range
of services to businesses and individuals and is retained by most
of the major trades unions and other affinity groups to advise
their combined memberships of over 6 million members.
The Group aims to increase its relationships with, and the
benefits it derives from, its affinity group and professional
partners.
In addition to a wide range of financial advice, the Group has
developed innovative products to meet the specific needs of its
retail and corporate customers.
Lighthouse operates from its headquarters in London as well as
having principal operating offices in Stockport and Woodingdean,
near Brighton.
For more information please visit:
http://www.lighthousegroup.plc.uk/
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END
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