AFHP Afh Financial Group Plc

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RNS Number : 5465U

AFH Financial Group Plc

19 January 2017

19 January 2017

AFH FINANCIAL GROUP PLC

("AFH" or the "Company")

ACQUISITION OF THE ASSETS OF ABERDEEN WEALTH MANAGEMENT LIMITED AND SHIELD DIRECT LIMITED

AFH, a leading financial planning led wealth management firm, is pleased to announce the acquisition of the assets of Aberdeen Wealth Management Limited ("Aberdeen"), an Aberdeenshire based IFA, and Shield Direct ("Shield"), a Devon based IFA. Following the acquisitions Mike Murray will join AFH as an adviser based in Aberdeen. Other vendors will retire and their clients will be serviced by existing AFH advisers.

Under the terms of the acquisition of Aberdeen, the maximum consideration payable by AFH is GBP556,500. An initial cash consideration of GBP294,000 has been paid upon completion, satisfied from the Company's existing cash resources. Further deferred consideration of up to GBP262,500 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired.

Under the terms of the acquisition of Shield, the maximum consideration payable by AFH is GBP520,000. An initial cash consideration of GBP272,000 has been paid upon completion, satisfied from the Company's existing cash resources. Further deferred consideration of up to GBP248,000 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired.

The acquisitions are AFH's second and third corporate transactions of the current financial year and will add approximately GBP44m to group Funds under Management ("FUM"). Under the terms of the acquisitions, the maximum consideration payable by AFH of GBP1.076m represents approximately 2.45% of the FUM acquired.

Commenting, Alan Hudson, Chief Executive of AFH, said:

"The acquisition of Aberdeen will strengthen our position in Scotland and I look forward to working with Mike to continue the development of AFH. The acquisition of Shield will bring a number of high quality clients spread across the South West and West Midlands."

"The acquisition of the assets of Aberdeen and Shield follows the recently reported acquisition of the assets of David Rushton and demonstrates the increasing level of activity that we are seeing in the market."

"The Company continues to seek high quality businesses of all sizes that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders."

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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January 19, 2017 02:00 ET (07:00 GMT)

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