Monday, 30 January 2017 12:18

Firm plots £6.7m of takeovers as it focuses on Financial Planning

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An advisory group is plotting a string of IFA takeovers with a £6.7m war chest.

AFH Financial revealed this morning that it has a “strong pipeline” of further “acquisition opportunities”.

These are supported by cash reserves of £6.7 million – up from £3.7 million the previous year – it said.

The company appeared to put a strong emphasis on moving its focus towards Financial Planning in today’s report, which detailed the financial performance last year.

Alan Hudson, chief executive, said it had been a successful year, “driven by the organic growth of our core Financial Planning and investment management business”.

John Wheatley, chairman of AFH, said: “The directors believe that there is a growing requirement for a professional, Financial Planning led approach to wealth management delivered by trusted personal advisers. Furthermore they recognise that there is a continuing consolidation of the IFA market at many levels within the sector.”

A strategy was outlined in 2014 to “place Financial Planning through face to face advice at the forefront of our proposition”.

A Stock Exchange statement read: “The cash position of the group will enable it to take advantage of acquisition opportunities presently in its pipeline, as the industry continues to consolidate.

“As at 31 October 2016 the company had generated a strong pipeline of acquisition opportunities that meet the board's financial and cultural criteria.”

AFH’s total revenue for the year increased by 15% to £24.1 million (2015: £21.0 million) whilst gross margins increased from 52% to 55% and EBITDA (net cash generation from trading) increased by 29% from £2.8 million to £3.6 million.

Post tax earnings attributable to shareholders increased 42% from £1.2 million to £1.7 million.

During the period new business generated by AFH advisers increased to £7.7 million (2015: £7.3 million).

Last modified on Monday, 30 January 2017 12:20
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