Monday, 04 June 2018 09:05

Chartered Financial Planner’s firm sees 177% profits rise

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AFH CEO Alan Hudson AFH CEO Alan Hudson

Financial Planning and wealth management group AFH has reported revenue for the first half of 2017-18 up 63% to £22.7m and post-tax profits up 177% to £2.5m.

Funds under management are up 40% on 2017 to £3.2bn and annualised revenue per adviser was up £40,000 to £220,000.

The figures, which outline the group’s performance to 30 April 2018, show company reserves of more than £23.7m. The group has no bank or secured debt.

AFH is a fast growing advisory firm and has bought over a dozen IFA and Financial Planning businesses in the past year. It plans further acquisitions this year.

AFH’s financial advice division, which includes AFH Wealth management, saw pre-tax earnings rise from £2.2m for to £3.8m. Its protection and insurance business, Eunisure, brought in £3.9m since joining the group in June 2017. The group plans to widen its offering to include mortages and insurance products.

AFH chief executive and Chartered Financial Planner Alan Hudson said: “These results are further vindication of our strategy to generate long-term value for shareholders by providing exceptional value and service to our clients and using our increasing size to drive down platform and fund management charges.

“We were particularly pleased with the positive contribution made by Eunisure, which joined the group less than a year ago. We continue to view the protection and insurance areas of the market as underserved and providing a significant opportunity for the future.

“During the period we again paid deferred consideration, based on the profitability of the acquired businesses, in excess of 90% of the expectation, including a growth opportunity, set at the time of acquisition across the portfolio.

“Our pipeline remains strong with a number of opportunities at the due diligence stage or in contract negotiations at the period end. And while we are looking to increase the average size of our acquisitions, we remain committed to providing an exit for retiring IFAs, with our existing advisers offering the benefits of the full AFH service to their clients.

“We believe that the expansion of our Financial Planning products and scope is in the best interests of both our shareholders and clients.

“While maintaining a focus on the IFA market and in line with our core objective of delivering the best possible deal for all our clients, we are further broadening our product offering to provide wider access to mortgages, income and other protection and commercial and general insurance.”

AFH Financial Group was founded by Alan Hudson in 1990 and is based in Bromsgrove, Worcestershire.

Since 2014 AFH has been listed on the London Stock Exchange’s AIM with a current market capitalisation of around £130m.

 

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