AFH Financial Group Plc Trading Update (9383E)
09 Novembre 2015 - 8:00AM
UK Regulatory
TIDMAFHP
RNS Number : 9383E
AFH Financial Group Plc
09 November 2015
9 November 2015
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
TRADING UPDATE
Full year results anticipated to be above market
expectations
following a strong second half performance
The Directors of AFH, a leading financial planning led
investment management firm, are pleased to announce that it expects
the results for the twelve months ended 31 October 2015 to be above
market expectations, following a strong second half performance,
with a year on year increase in turnover expected to be up over
30%.
HIGHLIGHTS:
-- Strong H2 2015 with revenues for the full year expected to
exceed GBP20m (H1 2015: GBP8.22m);
-- Cash balances at 31 October 2015 in excess of GBP3m;
-- 11 acquisitions successfully integrated into the Company over the past 12 months;
-- AFH well positioned to continue to take advantage of ongoing IFA market consolidation;
-- Funds Under Management approaching GBP2bn at 31 October 2015;
-- Final results for the year ended 31 October 2015 expected to
be announced in February
2016; and
-- Board remains confident of future prospects
During the last 12 months, the Company has enjoyed strong
organic growth with a significant increase in its recurring fee
income with total revenues for the full year expected to exceed
GBP20m (H1 2015: GBP8.22m), over a 30% increase year on year. In
addition, AFH has increased its national footprint by completing 11
acquisitions at an average capped consideration of GBP1m. Five of
these acquisitions were asset purchases. The acquisitions were
financed from a positive trading cash flow and from the equity and
unsecured loan stock raised by the Company, during 2014 and in
January 2015.
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. During 2015, the
Company used a combination of shares and cash to finance its larger
acquisitions.
While AFH continues to consolidate in its core region of the
Midlands, the focus of acquisitions during 2015 has been in other
key regions including the South West, the South East, the Thames
Valley and the North, reflecting the Company's stated strategy of
building a national footprint.
The purchase of IFS UK Limited ("IFS UK") in April 2015 has been
integrated into AFH during H2, as set out in the announcement made
in May 2015. The board is delighted with the quality of the
advisers who have joined AFH as part of the IFS UK acquisition. The
number of advisers who have been authorised under AFH, and hence
the price to be paid for IFS UK, has reduced from the maximum level
and the exceptional cost of integrating the business is expected to
be less than half of the GBP500,000 provisionally set aside. The
value of the investment in IFS UK, together with the maximum
deferred consideration, will be adjusted in the year-end accounts
in accordance with IFRS requirements. The transaction has further
validated the Company's acquisition model of structuring
transactions mitigating the risk to shareholders and ensuring that
the acquisition will meet the profitability targets set by the
board.
As at 31 October 2015, the Company had cash balances in excess
of GBP3m and remains fully funded to satisfy the deferred
consideration liabilities of announced acquisitions as they fall
due.
As previously noted, there has been a continued increase in the
size and rate of IFA companies becoming available for purchase, and
in the potential acquirers entering the market. As a consequence,
the Board is considering additional financing options, including
further share issues, to take advantage of the pipeline of
opportunities and to potentially enhance the return to
shareholders.
The Board remains confident of the Company's future prospects,
as a result of the performance during 2015 as well as anticipated
organic growth expected in 2016 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 2015 are particularly encouraging and
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, increasing the breadth of AFH's national footprint
whilst providing a professional and cost effective service to our
clients. The Board believes that having proved both the acquisition
and integration models AFH is well positioned to take advantage of
opportunities as they are presented.
"It is pleasing to note the increase in our recurring revenue
growth, and we look forward to updating the market in February 2016
at the time of our results. We would like to thank our shareholders
and staff without whom we would not be reporting this level of
profitable expansion."
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
Aidan Stanley
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTUNVWRVOAARAA
(END) Dow Jones Newswires
November 09, 2015 02:00 ET (07:00 GMT)
Afh Financial (LSE:AFHP)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Afh Financial (LSE:AFHP)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024