Expanding Financial Planning group Tavistock has scrapped a plan to buy Morgan Financial Group Holdings, a Financial Planning and IFA firm with offices in Bath and Cheltenham.

Tavistock announced a deal in January to buy Morgans for £3.7m in cash from Corimar Asset Management Fund. 

However, in a Stock Exchange announcement on 10 February Tavistock said the deal was being abandoned.

Tavistock said its proposed acquisition of Morgan Financial Group Holdings Limited will "no longer take place."

Brian Raven, Tavistock's chief executive, said: "The Transaction is no longer in Tavistock's strategic interests and therefore will not proceed. We wish the Morgans team well with the future development of their business."

Tavistock has been on a sustained expansion trail recently. Last week it acquired a 21% stake in retirement-focused financial adviser LEBC from the founder's widow for £10m.  

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

Morgans employs 10 financial advisers and has 1,500 clients with an estimated £500m in assets under advice. For the financial year ended 30 April 2021 the group reported gross revenues of £2.3m, EBITDA of £0.3m, gross assets of £1m and net assets of £0.8m.

Morgans has two subsidiaries, Morgan Financial Group Limited and Morgans Limited, the latter of which is regulated by the Financial Conduct Authority.

• Editor's Note: Our original story in January 2022 has been updated to reflect the scrapping of the original acquisition deal.