Financial adviser network and wealth manager Tavistock has reported a reduction in new advisory business levels, influenced by its advisers’ ability to meet with clients during the Coronavirus pandemic.

Thanks to a high level of recurring income gross revenues for the financial year remained broadly in line with last year, according to the group’s latest trading update.

The group also said that it recently entered into its tenth client acquisition agreement, using its own cash resources to purchase books of business from advisers who are retiring from the industry. These books of business generate recurring income ranging from £25,000 per annum at the low end, to almost £600,000 at the high end.

Tavistock’s trading update added that ownership of client relationships enables the group to achieve higher margins from the provision of financial advice.

Last year Tavistock announced after a business review that it would be closing 5 out of its 11 offices and axing a small number of both senior and junior staff in a £750,00 cost-cutting drive. 

The latest trading update from the group said strong progress has been made with the “rationalisation exercise” and a significant level of cost has been removed from the business.

As a result of the exercise, Tavistock said in its latest trading update that it expects to report profits for the financial year ending 31 March 2021 that are “significantly ahead” of last year.

Despite the cost-cutting exercise, the adviser network and wealth manager said it has recruited advisers from Sandringham, Quilter/Lighthouse and Succession.

The network also said there is a growing pipeline of others wishing to join Tavistock either as appointed representative firms or registered individuals.

In December the group launched the Tavistock Platform. The group said in the trading update that transitioning clients to the low-cost platform will “enable the company to service the entire value chain for retail clients.” The group also believes it will increase investment in Tavistock’s funds and model portfolios.

Last year the IFA and Financial Planning group said its senior managers and the majority of other staff have made voluntary salary waivers and that the group has also made use of the Government’s furlough scheme in order to help the expanding firm stay in the black.