AFH Financial Group Plc Trading Update (0238P)
14 Novembre 2016 - 8:00AM
UK Regulatory
TIDMAFHP TIDMAFHB
RNS Number : 0238P
AFH Financial Group Plc
14 November 2016
14 November 2016
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
TRADING UPDATE
Full year results anticipated to be above 2015 levels
AFH, a leading financial planning led wealth management firm, is
pleased to announce that it expects the results for the twelve
months ended 31 October 2016 to show continued growth driven by
higher average levels of revenue generated by its advisers with a
year on year increase in turnover expected to be over 15%. At the
year end Funds under Management ("FUM") exceeded GBP2bn, driven by
double digit growth in monies invested by existing and new
clients.
HIGHLIGHTS:
-- Strong organic growth with revenues for the full year
expected to exceed GBP24m (2015: GBP21.0m)
-- Cash balances at 31 October 2016 of GBP6.7m
-- Funds Under Management exceeding GBP2bn at 31 October 2016
-- Prior year acquisitions successfully integrated and deferred
earn outs continue to exceed 90% of maximum price
-- AFH well positioned to continue to take advantage of ongoing IFA market consolidation;
-- Strong pipeline of potential acquisitions under negotiation
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. Total revenues for the full year are expected to exceed
GBP24m (2015: GBP21.0m), a 15% increase year on year. During the
period the Company completed the acquisition of the assets of CRS
Financial Planning, an East Anglian based IFA, for a maximum
consideration payable of GBP663,670, adding approximately GBP25m to
AFH's funds under management.
The results will confirm the Company's financial strength, its
ability to successfully integrate acquisitions and its acquisitions
model, which is self-financing throughout the deferred payment
period following the initial cash outlay. During the year the
Company paid over GBP4m in earn out consideration at an average
level above 90% of the maximum price negotiated for acquisitions
undertaken during prior years, reflecting the strong performance of
the acquired businesses within AFH.
During the period AFH maintained a consistent fixed cost base
following the heavy investment in people and systems in 2015 whilst
continuing to invest in its infrastructure.
The Board's focus on shareholder value has meant that the
execution of acquisition opportunities has been slower than
previously anticipated, but a strong pipeline of acquisition
targets has been developed during the second half of the year with
negotiations ongoing.
The Board remains confident of the Company's future prospects,
as a result of its performance during 2016 as well as anticipated
organic growth expected in 2017 through AFH's existing advisers and
the healthy pipeline of prospective acquisitions.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"I am encouraged by the strong progress we are continuing to
see. AFH continues to be active in the market to acquire good
quality IFAs but remains focussed on ensuring shareholder value.
The success and robustness of this policy is reflected in the high
level of acquisitions meeting or approaching earn out targets and
the strong cash flow generated by the business to finance these
earn out liabilities.
AFH has continued to attract new funds throughout the year and I
am pleased to report double digit organic growth in our Funds under
Management.
The Board will continue to execute its strategy of making
selective acquisitions and increasing the breadth of AFH's national
footprint whilst providing a professional and cost effective
service to our clients, and believes that AFH remains well
positioned to take advantage of opportunities as they arise.
I am pleased to note the continued increase in our recurring
revenue and our gross margin, and we look forward to updating the
market further in January 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
Alan Hudson, Chief Executive
Officer
Paul Wright, Chief Financial
Officer
www.afhfinancialgroup.com 01527 577 775
Liberum (Nominated Adviser
and Broker)
John Fishley / Richard
Bootle 020 3100 2000
Camarco
Geoffrey Pelham-Lane /
Jennifer Renwick 0203 757 4985
This information is provided by RNS
The company news service from the London Stock Exchange
END
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November 14, 2016 02:00 ET (07:00 GMT)
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