Tavistock agrees £3.7m acquisition of Morgan Financial Group

The AIM-traded firm said Morgans has two wholly owned-subsidiaries, being Morgan Financial Group and Morgans Limited, with the latter regulated by the Financial Conduct Authority.

It said completion remained conditional on Tavistock receiving change-in-control approval from the FCA, and on there being no material adverse change in Morgans' financial standing prior to completion.

Tavistock said it had agreed to acquire Morgans for total cash consideration of £3.7m, from Corimar Asset Management Fund LP.

It said £3.1m of that would be paid on completion, and £0.6m 12 months following completion.

“We look forward to joining a much larger, well resourced group and to working with Tavistock's management team to expand the Morgans business,” said Steve Thorrington, managing director at Morgans.

Morgans was established in 1992 as a provider of financial planning and consultancy services to private and corporate clients.

It employs 10 financial advisers and has more than 1,500 clients, with an estimated £500m in assets under advice.

Morgans' unaudited accounts for the year ended 30 April showed that the group achieved gross revenues of £2.3m, reported EBITDA of £0.3m, had gross assets of £1m, and net assets of £0.8m.

“We are pleased to welcome Morgans into the Tavistock Investments group and look forward to working with Steve and his team to improve Morgans' operational efficiency and accelerate its commercial development,” said Brian Raven, chief executive officer of Tavistock.

At 1222 GMT, shares in Tavistock Investments were down 1.9% at 3.78p.