AFHP Afh Financial Group Plc

TIDMAFHP

RNS Number : 8690Q

AFH Financial Group Plc

03 March 2016

AFH Financial Group PLC

("AFH", or the "Company")

AGM Statement

Strong Recurring Revenues with Gross Margins maintained above 50%

Robust Balance Sheet and Pipeline of Prospective and Select Acquisitions

At the Company's Annual General Meeting ("AGM"), to be held at 11:00am today at AFH House, Buntsford Drive, Stoke Heath, Bromsgrove B60 4JE, John Wheatley, Chairman of AFH, will update shareholders with the following statement:

"As reported in the audited results released on 25 January 2016, I am pleased to confirm that the Company's core business continues to perform in line with trading levels experienced during the second half of 2015. The Board is also pleased to report that, in spite of the recent stock market turbulence, recurring revenue continues to remain strong as a result of the inflow of new funds during the period and the relatively conservative investment approach taken for our clients. As in 2015, gross margins remain above the 50% level.

In December last year, the Company completed a fundraising of GBP6.37 million through a placing and subscription at a price of 165p per share. The net proceeds of the fundraising, estimated to be GBP6.16 million, are to be applied by the Company to fund the purchase of further IFA companies and the working capital requirements of the enlarged organisation.

During the first quarter of the current financial year, the Company made deferred payments, based on trading performance, of GBP1.6m in respect of acquisitions completed in previous periods. This represented an average of 94% of the maximum consideration payable across those acquisitions.

I am pleased to report that both the Company's balance sheet, and pipeline of prospective acquisitions, remains strong and further selective acquisitions are anticipated during the current financial year. As at 1(st) March the Company had cash balances of GBP8.0m of which GBP1.7m represented capital requirements for our authorised businesses. The Directors remain confident that the Group is well positioned to take advantage of market opportunities as they arise."

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

Aiden Stanley

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

March 03, 2016 02:01 ET (07:01 GMT)

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