AFH's acquisitions power revenue ascent
By Duncan Ferris
Date: Monday 12 Nov 2018
(Sharecast News) - AFH Financial said it had a strong pipeline of more acquisitions as its previous purchases bore fruit in the past year, with revenues from the wealth manager due to rise 49% for the past year.
The London-listed outfit said revenues in the year to end-October should reach the £50m marker, with the 16 acquisitions completed over the course of the year contributing £4m.
Meanwhile, funds under management jumped from £2.8bn to £4.5bn over the year.
The new acquisitions were snapped up for a total anticipated consideration of £34m, with two placings raising £32.5m and introducing a number of new institutional investors to leave cash balances at £22m.
Alan Hudson, chief executive of AFH, said: "The success and robustness of our acquisition model is reflected in the continued high level of acquisitions meeting earn out targets and the strong cash flow generated by the business to finance these earn out payments."
A "strong pipeline" of further potential acquisitions is under negotiation according to a statement from AFH.
"The support of new and existing institutional shareholders throughout the year has provided the company with the funds to continue to acquire a number of earnings accretive IFA businesses, whilst expanding our national footprint at a time when the requirement for financial planning and personal asset management continues to grow," said Hudson.
Post-period end, AFH announced the acquisition of Premier Wealth Management Harrogate Limited for a maximum consideration of £4.5m.
AFH's shares were up 2.08% at 393.00p at 0837 GMT.
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