TIDMAFHP
RNS Number : 4606H
AFH Financial Group Plc
16 March 2015
AFH Financial Group PLC
("AFH" or "the Group")
Final Results
Proposed Dividend up 20%; Robust Financial Performance; Strong
Balance Sheet
The Directors of AFH (the "Directors"), a leading financial
planning led investment management firm, today announces the
Group's consolidated audited results for the period ending 31
October 2014 reflecting continued growth of the Group during
2014.
Highlights:
-- Revenue up 40% to GBP15.0m (2013: GBP10.7m);
-- Recurring revenue increased to 55% of total revenue (2013: 50%);
-- Gross margins at 51%;
-- Profit before tax increased to GBP1,057,000 (2013: GBP1,049,000);
-- Proposed dividend of 1.5p per share, up 20% (2013 dividend: 1.25p per share);
-- Cash and cash equivalents of GBP5.7m at 31 October 2014 (31
October 2013: GBP4.3m) with no bank or other secured debt;
-- Total advisers increased to 136 (31 October 2013: 122);
-- Funds under management now exceed GBP1 billion;
-- Seven acquisitions completed, expanding operations into
Scotland, Cornwall and East Anglia; and
-- Strong acquisition pipeline - from single person businesses to small-to-medium corporates.
Commenting, John Wheatley, Chairman of AFH and Alan Hudson,
Chief Executive of AFH, said:
"The current year has started in line with trading levels
experienced during the second half of 2014 with recurring revenue
continuing to grow in line with the Directors' expectations. The
Group's acquisition pipeline remains strong and the Group's cash
reserves will allow it to take advantage of the active M&A
market in the IFA sector to meet its strategic aims in 2015 and
future periods."
"The profitable growth of AFH is due to the hard work and
professional approach of our staff and advisers. I would like to
formally thank all the team for the contribution they have made in
a transformational year where we have continued to grow our
business successfully as well as listing on AIM. It is our aim to
become the employer of choice for staff and it is in response to
the support we receive from our staff that we continue to develop
and promote our people from within at every opportunity so that
many key positions are occupied by home grown talent. It is the
enthusiasm, dedication and creativity of our staff and advisers
that allows the Group to realise the delivery of our strategy each
year."
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 07799 003 220
Dominic Barretto
Kelsey Traynor
Chairman's Report
I am pleased to report that during the period under review AFH
successfully transitioned the listing of its shares to the AIM
market and met its financial targets as set out by the Directors in
the admission document published in June 2014. Our financial
progress has been achieved through a combination of organic and
acquisitive growth, the latter being funded by the new share issues
in April 2014 and June 2014 and from cash generated by our trading
operations. Further, during the year, the Board was strengthened by
the appointment of three new directors: Paul Wright as CFO and Sue
Lewis and Mark Chambers, who bring considerable corporate and
commercial experience, as non executive directors. As previously
reported, we have also invested in our technology and
infrastructure, as well as in our staff, to ensure that the Group
is appropriately resourced for the planned expansion in 2015 and
beyond.
During the year, the Group completed seven acquisitions,
expanding operations from its West Midlands heartland into
Scotland, Cornwall and East Anglia - as well as increasing its
footprint in its traditional client areas. These acquisitions
included asset purchases and, in the case of AG Financial Planning,
a corporate acquisition. During recent years, the Group has
established an effective model for integrating multiple
acquisitions of varying sizes, and the Board believes that this
will enable the Group to accelerate the rate of acquisitions in the
future as appropriate opportunities arise from single person
businesses to small-to-medium corporates.
The two fundraising exercises undertaken during the year
successfully raised over GBP3m for the Group, under the Enterprise
Investment Scheme ("EIS") to enable qualifying investors to
subscribe for new shares under a favourable tax structure. As noted
above, these funds have been used to finance asset purchases in
addition to providing capital to fund the organic growth of the
business.
Admission to AIM
On 30 June 2014 the Group's shares were admitted to trading on
AIM. The Board of AFH considers this to be an important step change
in the development of the Group in providing access to the wider
capital markets, enhancing the standing and credibility of AFH in
the Independent Financial Adviser ("IFA") sector and in creating a
potential currency for larger acquisitions in the future. Whilst
trading volumes since June unsurprisingly have been low, the
successful admission of the shares to trading on AIM introduced
institutional investors to our shareholder register for the first
time and allowed the Group to meet with a number of institutional
investors and market its profile as a leading financial planning
led investment manager.
Financial Results
Like-for-like revenue for the year increased by approximately
40% to GBP15.0m compared to the corresponding year ending 31
October 2013. Gross margins remained at 51%, whilst recurring
revenue increased to 55% of total revenue (2013: 50%).
The Group reported an increase in profit before tax (as adjusted
to exclude the exceptional one-off IPO costs) to GBP1,057,000
(2013: GBP1,049,000). The tax charge for the year was also
increased to 30% as a result of the non-tax deductibility of these
exceptional IPO costs.
Earnings per share were impacted by the April and June share
issues, the net proceeds of which were used for acquisitions in
quarter four of the period under review and the first half of the
new financial year, the benefits of which will be realised in 2015
and future years. Adding back the effect of the exceptional IPO
costs adjusted EPS fell to 4.7p per share (2013: 5.3p).
At 31 October 2014, the Group remained free of bank or other
secured debt and held cash and cash equivalents of GBP5.7m (31
October 2013: GBP4.3m) reflecting both the positive cash generation
of the business during the year and the balance of the funds raised
in April 2014 and June 2014. As a result, the Group is well placed
to make further suitable acquisitions as opportunities arise in the
future.
Dividend
As previously announced the Group intends to maintain a
progressive dividend policy whilst recognising the requirement to
maintain cash within the business to fund its growth strategy. The
Directors have considered these opposing requirements and in light
of the performance during the year under review, they propose a
dividend of 1.5p per share, an increase of 20% over the 2014
dividend (1.25p per share). Subject to shareholders' approval at
AFH's forthcoming Annual General Meeting, the dividend will be paid
on 22 May 2015 to shareholders on the register of members at the
close of business on 24 April 2015.
Employees
The profitable growth of AFH is due to the hard work and
professional approach of our staff and advisers. I would like to
formally thank all the team for the contribution they have made in
a transformational year where we have continued to grow our
business successfully. It is our aim to become the employer of
choice for staff and it is in response to the support we receive
from our staff that we continue to develop and promote our people
at every opportunity so that many key positions are occupied by
home grown talent. It is the enthusiasm, dedication and creativity
of our staff and advisers that allows the Group to realise the
delivery of our strategy each year.
Outlook
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. This has been particularly apparent since
the summer months of 2014 with a number of medium sized IFA
practices now considering their future as part of larger
organisations.
The Group has proven consistent profitability and cash
generation and maintains a strong balance sheet for the current
size of its business. The Board believe that it has implemented the
appropriate infrastructure to support its growth plans for 2015 and
beyond and will actively seek appropriately priced acquisition
opportunities during 2015 to generate additional revenue, drive
increased profitability and grow funds under management.
Our long-term aim continues to be focused on growing our client
base through both organic and acquisitive expansion, supported by
our centralised support functions.
The progress made in 2014, and into the early months of the 2015
financial year, allows the Directors to view the prospects for the
future with confidence.
John Wheatley
Non-Executive Chairman
Chief Executive's Report
I am pleased to report the continued growth of the Group during
2014, through new business generated by our team of IFAs
supplemented by the recurring income acquired from our seven
acquisitions during the period. During the period total revenue
grew by GBP4.2m to GBP15.0m whilst gross margins were held at 51%.
Recurring revenue remains strong and during the year accounted for
GBP8.2m of total revenue (2013: GBP5.5m) This increase in recurring
revenue as a percentage of total revenue can be attributed in part
to the acquisitions completed during the year but also reflects a
trend that has been previously highlighted as a development of the
Retail Distribution Review ("RDR"), introduced in January 2013. The
increase in recurring revenue of GBP2.7m reflects our organic
growth together with the contribution of acquisitions made during
2014 and the previous year. GBP385,000 of recurring revenue was
attributed to acquisitions completed during the year ended 31
October 2014.
The Group successfully completed the acquisition and integration
of seven IFA businesses during the year of which six were asset
purchases, making use of the funds raised from EIS qualifying
shares raised by the Group during the last two years. These
acquisitions incurred an initial cash outlay of GBP864,000 with the
balance of the consideration of up to GBP1.15m being on a deferred
basis depending on trading of the acquired businesses during the
next two year period. In addition, the Group made one company
acquisition for a potential maximum price of GBP422,000 of which
GBP195,000 was paid during the year. Deferred consideration
totalling GBP649,000 was also paid in respect of prior year
acquisitions reflecting the buyout value attributable to the actual
recurring revenue and EBIT generated by these acquisitions. The
current year acquisitions diversified the Group into Scotland and
expanded the footprint in England and Wales. It is anticipated that
these acquisitions will act as a seed for organic growth in the
future and enable the Group to recruit additional IFAs in these new
areas.
At 31 October 2014, the number of advisers had increased to 136
(31 October 2013: 122) reflecting both advisers joining with
acquisitions and those recruited individually, net of retiring
IFAs. The internal market that I outlined in my last report
continues to allow retiring advisers to realise the growth in the
value of their client base whilst enabling younger advisers within
the Group to acquire client portfolios in a transparent and
controlled environment and is expected to develop further in the
future.
During the year funds under management ("FUM") grew to GBP850m.
This figure was increased to over GBP900m by the acquisition of
Knight O'Byrne on 3 November 2014 and, on 11 January 2015, the
Group announced that FUM exceeded the GBP1billion level.
Administrative expenses of GBP6.8m includes the non-recurring
IPO costs of listing on AIM, of which GBP197,000 was written off
during the year in accordance with IFRS requirements.
Administrative expenditure, before depreciation and amortisation of
tangible and intangible assets and IPO costs increased to GBP6.2m
(2013: GBP4.4m) reflecting the previously reported recruitment and
investment in our infrastructure to support the growth in 2014 and
the projected growth in 2015. The Group continues to support its
operations from one office in Bromsgrove through a centralised
administrative function.
Amortisation of intangible assets increased significantly to
GBP343,000 (2013: GBP91,000) as the impact of a full year charge on
our 2013 acquisitions was reflected. Following a review of all
acquisitions to date, using discounted cash flow modelling, the
Directors' have not deemed it necessary to impair the value of any
of the Group's investments.
The Group strengthened its balance sheet during the year through
several equity fundraisings and profitable trading and at 31
October 2014 had net assets of GBP10.5m (31 October 2013: GBP7.3m)
and cash and cash equivalents of GBP5.7m (31 October 2013:
GBP4.3m). At that date the maximum deferred earn out liabilities on
existing acquisitions was GBP4.2m, payable during 2015 and 2016.
Due to the structure of these acquisitions the earn outs are
expected to be self-funding during these periods.
Property Fund
During the period, AFH's Property Fund invested in 4 properties
in a range of sectors including warehousing, leisure and office
premises. At 31 October 2014 the fund had grown to GBP26m (2013:
GBP17m) and has now invested in 9 properties each valued between
GBP2m and GBP5m. The fund continues to generate returns in line
with its 6% to 8% target.
Post Year End
Since 31 October 2014, the Group has raised GBP2.14m from the
issue of a 7.5% unsecured 4 year bond with warrants attached
exercisable at 200p, and a further GBP207,000 from the issue of new
shares to a number of our IFAs who were not already shareholders at
a price of 150p.
Since 31 October 2014 the Group has completed 5 acquisitions of
which three were asset purchase deals and two were share purchases,
the details of which have been announced to the market. Completion
of several of these transactions was delayed by the increasing time
required by the FCA to transfer the existing authorisations of
advisers to AFH. It appears that this trend is consistent across
the market and is likely to continue during 2015 with a
consequential adverse effect on the timing of future
acquisitions.
The pipeline for both suitable acquisitions and IFA recruitment
remains strong and whilst there was upward pressure on price
multiples within the sector during 2014 the Group continues to find
high quality IFAs at prices consistent with the AFH model. As set
out in the December 2014 bond documentation, the Group continues to
expand nationally without any loss of focus on our traditional West
Midlands client base and remains focused on both small and larger
IFAs looking to benefit from being part of a wider group. It is
expected to be a feature of our acquisition strategy in 2015 to
expand the business nationally with an emphasis on the South and
North West of England.
In January 2015, the Group announced that it had exceeded GBP1
billion FUM. This demonstrates the growing status of AFH and will
be used by the Group to negotiate improved charging structures on
behalf of clients and advisers. As the market forecasts a period of
low inflation and lower investment returns than in previous years
the ability to provide cost effective investment propositions will
establish key differentiators in the IFA market and the Board
believes that AFH is well placed to benefit from these changes.
Current year trading
The current year has started in line with trading levels
experienced during the second half of 2014, with recurring revenue
continuing to grow in line with the Directors' expectations. As
noted above, a number of acquisitions that were forecast to
complete during Q1 2015 were delayed as a result of changes in
regulatory authorisation procedures and whilst three of these deals
completed in February 2015, and will increase the ongoing revenue
run rate to the expected level, they will have minimal impact in H1
2015 and this will have a short term impact on our first half
revenue growth. The Group's acquisition pipeline remains strong and
the Group's cash reserves will allow it to take advantage of the
active M&A market in the IFA sector to meet its strategic aims
in 2015 and future periods.
Alan Hudson
Chief Executive Officer
AFH FINANCIAL GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2014
2014 2013
GBP'000 GBP'000
Revenue 15,037 10,797
Cost of sales (7,326) (5,165)
Gross profit 7,711 5,632
Administrative expenses (6,811) (4,561)
Operating profit 900 1,071
Finance income 25 1
Finance costs (64) (23)
Profit before tax 861 1,049
Income tax expense (260) (245)
Profit for the year attributable to owners of the parent 601 804
Other comprehensive income - -
Total comprehensive income for the year attributable to owners of the parent 601 804
Earnings per share (in pence)
Basic 3.31 5.33
Diluted 3.10 5.19
AFH FINANCIAL GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2014
2014 2013
GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 9,707 7,376
Property, plant and equipment 279 251
Investments 1 1
9,987 7,628
Current assets
Trade and other receivables 2,474 2,625
Cash and cash equivalents 5,653 4,334
8,127 6,959
Total assets 18,114 14,587
Liabilities
Current liabilities
Trade and other payables 4780 4,047
Current tax liabilities 136 198
Financial liabilities - Borrowings - 50
4,916 4,295
Net current assets 3,211 2,664
Non-current liabilities
Trade and other payables 1,866 2,220
Financial liabilities - Borrowings 752 752
Deferred tax liability 42 34
2,660 3,006
Total liabilities 7,576 7,301
Net assets 10,538 7,286
Shareholders' equity
Share capital 1,932 1,712
Share premium account 7,097 4,477
Merger reserve (540) (540)
Share-based payment reserve 269 230
Retained earnings 1,780 1,407
Total Shareholders' equity 10,538 7,286
Approved by the Board of Directors 13 March 2015
AFH FINANCIAL GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 31 OCTOBER 2014
Share-based
Share capital Share premium Merger reserve payment reserve Retained earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
November 2012 1,478 2,153 (540) 230 751 4,072
Profit for the
year - - - - 804 804
Other
comprehensive
income - - - - - -
Total
comprehensive
income - - - - 804 804
1,478 2,153 (540) 230 1,555 4,876
Issue of share
capital 234 2,324 - - - 2,558
Dividend - - - - (148) (148)
Balance at 31
October 2013 1,712 4,477 (540) 230 1,407 7,286
-- -- -- -- -- --
Profit for the
year - - - 39 601 640
Other - - - - - -
comprehensive
income
Total
comprehensive
income 39 601 640
Issue of share
capital 220 2,620 - - - 2,840
Dividend - - - - (228) (228)
-- -- -- -- -- --
Balance at 31
October 2014 1,932 7,097 (540) 269 1,780 10,538
AFH FINANCIAL GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 31 OCTOBER 2014
2014 2013
GBP'000 GBP'000
Cash flows from/(used in) operating activities
Cash generated from operations 1,895 998
Tax paid (314) (187)
Net cash inflow/(outflow) from operating activities 1,581 811
Cash flows from investing activities
Purchase of property, plant and equipment (112) (161)
Purchase of other intangible assets, net of cash (2,674) (1,458)
Proceeds from disposals of other intangible assets - 1,080
Rental Income received 10 -
Interest received 15 1
Net cash outflow from investing activities (2,761) (538)
Cash flows from financing activities
Proceeds from issue of shares 3,082 2,588
Share issue costs (242) (31)
Proceeds from borrowings - 752
Repayment of borrowings (50) -
Interest paid (63) (23)
Dividends (228) (148)
Net cash inflow from financing activities 2,499 3,138
Net increase/(decrease) in cash and cash equivalents 1,319 3,411
Cash and cash equivalents at the beginning of the year 4,334 923
Cash and cash equivalents at the end of the year 5,653 4,334
AFH FINANCIAL GROUP PLC
NOTES TO THE CONSOIDATED FINANCIAL STATEMENTS
The following selected notes have been extracted from the
Company's audited report and accounts.
1. General Information
AFH Financial Group is a company incorporated in England and
Wales under the Companies Act 2006 and is registered at AFH House,
Buntsford Drive, Stoke House, Bromsgrove, Worcestershire, B60
4JE.
The Group is principally engaged in the provision of independent
financial advice to the retail market.
This financial information has been prepared for the year ended
31 October 2014.
2. Revenue and segmental analysis
The Board of Directors is considered to be the chief operating
decision maker of the Group.
The Board has determined that there is one operating segment of
Independent Financial Advisery services based on reports reviewed
by the Board that are used to make strategic decisions.
The total revenue of the Group for the year has been derived
from its principal activity wholly undertaken in the United
Kingdom.
No customer is defined as a major customer by revenue,
contributing more than 10% of the Group revenues (2013 -
GBPnil).
3. Employees
Employee costs (including salaried directors) for the Group were
as follows:
2014 2013
GBP'000 GBP'000
Wages and salaries 3,833 2,546
Social security costs 358 237
Share based payments 39 -
4,230 2,783
The average number of employees (including directors) during the
year were as follows:
2014 2013
Number Number
Directors 5 3
Office 136 98
Total 141 101
4. Income Tax expense
2014 2013
GBP'000 GBP'000
Current tax
* Current year 235 228
* Prior year 10
Deferred tax
* Relating to origination and reversal of temporary
differences 15 17
Income tax expense reported in the Statement of
Comprehensive Income 260 245
Reconciliation of profit before tax to total tax expense for the
year:
2014 2013
GBP'000 GBP'000
Profit before tax 861 1,049
Profit become income tax multiplied by the rate
of
Corporation tax in the UK 22.86% (2013), 20% (2014) 172 241
Effect of:
Non-deductible expenses 65 3
Prior year deferred tax adjustment 23 2
Tax effect of unrecognised accelerated capital allowances - -
Income tax expense reported in the Statement of
Comprehensive Income 260 245
Changes in the applicable tax rates over the periods are due to
the reduction in Corporation tax rates.
5. Dividends
2014 2013
GBP'000 GBP'000
Ordinary interim paid 228 148
Ordinary final paid - -
Dividend per share 1.25 pence 1 pence
6. Intangible assets
Acquired
client
Goodwill portfolios Total
GBP'000 GBP'000 GBP'000
Cost
At 1 November 2012 2,477 2,301 4,778
Additions - 4,190 4,190
Disposals - (284) (284)
Revaluations (12) (779) (791)
At 31 October 2013 2,465 5,428 7,893
Additions - 2,674 2,674
Disposals - - -
Revaluations - - -
At 31 October 2014 2,465 8,102 10,567
Amortisation
At 1 November 2012 375 51 426
Charge for the year - 91 91
At 31 October 2013 375 142 517
Charge for the year - 343 343
At 31 October 2014 375 485 860
Net book value
At 31 October 2014 2,090 7,618 9,707
At 31 October 2013 2,090 5,286 7,376
Goodwill believed to have an indefinite useful life is carried
at cost. The determination of whether goodwill is impaired requires
an assessment of the fair value less cost to sell. The recoverable
amount of goodwill on a fair value less costs to sell calculation
is based on the discounted cash flows expected from the intangible
assets of each acquisition, assuming no future growth in revenue
generated cash flows, discounted at an implied factor of 10%. On
this basis the directors believe the value of goodwill is not
impaired at 31 October 2014.
7. Trade and other receivables
2014 2013
GBP'000 GBP'000
Trade receivables 2,009 2,054
Corporation tax - 11
Other receivables 184 369
Prepayments 274 180
Deferred tax asset 7 11
2,474 2,625
There are no bad or doubtful receivables.
8. Borrowings
2014 2013
GBP'000 GBP'000
8% Unsecured bonds 752 752
Convertible loan notes - 50
752 802
Analysis of borrowings
Current borrowings
Convertible loan notes - 50
- 50
Non-current borrowings
8% Unsecured bonds 752 752
The financial liabilities are recognised at amortised cost.
There is no material difference between the fair value and the
carrying value.
Convertible loan notes issued relate to the acquisition of
Acquired Client Portfolios on 3 April 2012 and are treated in
accordance with the accounting policy on contingent consideration.
During the year to 31 October 2014 GBP50,000 loan notes were
cancelled as a result of earn out targets not being achieved and
this cancellation has been taken through the income statement.
The 8% unsecured bond is due in 2020.
9. Trade and other payables
2014 2013
GBP'000 GBP'000
Current
Trade payables 359 225
Contingent consideration 2,266 1,839
Loan - 139
Commissions payable 1,683 1,403
Other payables 154 114
Accruals 318 327
4,780 4,047
Non-current
Contingent consideration 1,866 2,220
1,866 2,220
10. Cash generated from operations
2014 2013
GBP'000 GBP'000
Profit before tax 861 1,049
Adjustments for:
Interest and dividend income (25) (1)
Interest expenses 63 23
Depreciation, amortisation and impairment 427 145
Profit on disposal of intangible assets - (6)
Equity settled share based payment expense 39 -
Cancellation of loan notes - (175)
Movements in working capital:
- Trade and other receivables 151 (486)
- Trade and other payables 379 448
Cash generated from operations 1,895 997
11. Events subsequent to the Statement of Financial Position
On 3 November 2014 the Company announced the acquisition of the
assets of chartered financial planners Knight O'Byrne Limited
("Knight O'Byrne), headquartered in Cornwall, for a maximum
consideration payable of GBP1.2 million, satisfied by an initial
cash payment upon completion of GBP525,000, followed by a further
cash consideration of up to GBP675,000, payable over the next 26
months in three tranches and dependent upon performance criteria of
Knight O'Byrne over the next two years
On 2 February 2015 the Company announced the acquisition of
Roxborough Consultancy Limited ("Roxborough") based in Didcot,
Oxfordshire, and the acquisition of the assets of First Class
Financial Management Ltd ("First Class"), based in West Bromwich.
Under the terms of the acquisition of Roxborough, the maximum
consideration payable by AFH is GBP911,760, satisfied by an initial
cash payment upon completion of GBP476,760, followed by a further
cash consideration of up to GBP435,000, payable over the next 26
months in two tranches and dependent upon performance criteria of
Roxborough over the next two years. Under the terms of the
acquisition of the assets of First Class the maximum consideration
payable by AFH is GBP84,000
On 5 February 2015 the Company announced that it had raised
GBP2.14m of 7.5% Unsecured Loan Notes repayable December 2018
together with warrants to subscribe for 200 new ordinary shares in
the Company at a price of GBP2-00 on redemption of the Loan Notes.
The Company also announced that it had issued 137,997 ordinary
shares at a price of 150p.
On 10 February 2015 the Company announced the acquisition of
K.L. Plester Financial Services Holdings Limited ("Plester"), based
in Kidderminster, Worcestershire. Under the terms of the
acquisition, the maximum consideration payable by AFH is
GBP1,717,200 in cash. This will be satisfied by a cash payment on
completion of GBP745,200, followed by a further cash consideration
of up to GBP972,000, payable over the next 26 months in two
tranches, dependent upon the performance of Plester over the next
two years.
On 2 March 2015 the Company announced the acquisition of CIB
Wealth Management LLP ("CIB"), based in Rochester Kent. Under the
terms of the acquisition, the maximum consideration payable by AFH
is GBP973,350. The initial consideration will be satisfied by a
cash payment upon completion of GBP453,600 satisfied from the
Company's existing cash resources, and the issue of 31,500 ordinary
shares of 10p each in the Company (the "Consideration Shares") at a
price of 150p per Consideration Share. Further deferred
consideration of up to GBP472,500 will be payable over the next 26
months in two tranches and dependent upon performance criteria of
CIB over the next two years. The deferred consideration is expected
to be settled 90% through cash and 10% through the issue of new
ordinary shares of AFH based on the prevailing mid-market price of
AFH's ordinary shares on the date the deferred consideration is
paid.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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