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Tavistock Investments has decided to suspend its dividend to protect its financial position amid the Covid-19 pandemic.

The firm will also carry out a strategic review in order to make cost cuts.

To navigate the crisis, the firm’s executive team members agreed to take pay cuts.

The company also dropped the guidance for the year to 31 March 2021.

Tavistock said that the impact of the pandemic is difficult to evaluate correctly at present though it is certain that the effect will be for “some considerable time”.

“It is inevitable that adverse economic and market performance, together with the commercial consequences of social distancing and the Government imposed lock-down, will combine to have a detrimental effect on the Company’s performance in the new financial year,” Tavistock said.

However, the company also said that it expects trading results for the year to March to be in line with market expectations.

The company said that the performance of its UCITS protected funds was strong.

The vehicles are said to shield clients from the consequences of sudden and sustained falls in market values.

Tavistock CEO Brian Raven said: “Market turbulence is far from over and a potentially very deep recession lies ahead.

“A great many clients, particularly the less well off, cannot afford to risk further significant losses to savings or pension pots. These clients need security, ahead of investment upside potential.”

Last month, Tavistock received £650,000 ($755,846) equity capital in a share issuing and in turn, gained Hugh Simon as a new investor.