AFH Financial Group Plc Trading Update (0461W)
04 Novembre 2014 - 8:01AM
UK Regulatory
TIDMAFHP
RNS Number : 0461W
AFH Financial Group Plc
04 November 2014
4 November 2014
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
TRADING UPDATE
In line with Expectations, Funded, Acquisitive
The Board of AFH, a leading financial planning led investment
management firm, is pleased to announce that it expects the results
for the twelve months ended 31 October 2014 to be in line with
market expectations.
HIGHLIGHTS:
-- Cash balances in excess of GBP5m;
-- AFH well positioned to take advantage of IFA market consolidation;
-- Seven successful acquisitions financed by positive trading
cash-flow over the past 12 months;
-- Funds Under Management exceeds GBP900m;
-- Final results for the year ended 31 October 2014 expected for release in March 2015; and
-- Board remains confident of prospects for the year ended 31 October 2015.
During the previous 12 months, the Company has increased its
national footprint by completing seven acquisitions, at an average
capped consideration of GBP350,000. Six of these acquisitions were
asset purchases. The acquisitions were financed from a positive
trading cash flow and from the c. GBP3m of equity raised by the
Company in April 2014 and June 2014. The Company's acquisition
model is based on a capped earn out over a two year period with the
initial consideration set at approximately 50% of the anticipated
total value.
Whilst AFH continues to consolidate its traditional strength in
the West Midlands, 2014 marked its expansion into Scotland and East
Anglia and further growth in the South West, reflecting the
Company's stated expansion strategy. The Board anticipates further
expansion of the Company's national presence during 2015 to include
acquisitions in London and the South East.
Since AFH's admission to AIM in June 2014, the number and size
of potential acquisition targets has grown and the Board considers
the Company's pipeline for deals to be healthy, as demonstrated by
the recently announced acquisition of Knight O'Byrne.
As at 31 October 2014, the Company had cash balances in excess
of GBP5m and remains well positioned to take advantage of the
consolidation activity in the IFA market post Retail Distribution
Review (RDR).
During recent months the Board has noted an increase in the size
and rate of IFA companies becoming available for purchase, and
expects this trend to continue throughout 2015. As a consequence,
the Board is considering additional financing options and may use
fixed interest instruments, alongside its equity base, to introduce
a modest level of gearing into the Company's balance sheet in the
current financial year to take advantage of this developing trend
and to potentially enhance the return to shareholders.
The Board remains confident of the Company's prospects for the
year ended 31 October 2015 as a result of the performance during
2014 as well as anticipated organic growth expected in 2015 through
the Company's existing advisers and the healthy pipeline of
prospective acquisitions.
Commenting, Alan Hudson, Chief Executive of AFH, said: "The
Company's results for 2014 will represent another important
milestone in AFH's journey to become one of the UK's leading IFAs.
The Board continues to execute its strategy of making selective
acquisitions and increasing the breadth of AFH's national
footprint. I look forward to updating the market in March, a
statement which will reflect continued hard work and strong
performance during challenging economic times."
Enquiries:
AFH Financial Group PLC 01527 577 775
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
www.afhfinancialgroup.com
Allenby Capital Limited 020 3328 5656
(Nominated Adviser and Broker)
Nick Naylor
Chris Crawford
Nick Athanas
Yellow Jersey PR Limited 07768 537 739
Dominic Barretto
Kelsey Traynor
This information is provided by RNS
The company news service from the London Stock Exchange
END
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