AFH Financial Group Plc Acquisition (1420J)
03 Décembre 2018 - 8:01AM
UK Regulatory
TIDMAFHP TIDMAFHB
RNS Number : 1420J
AFH Financial Group Plc
03 December 2018
3 December 2018
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITION OF CTL THREE LIMITED TOGETHER WITH ITS SUBSIDIARY
COMPANIES
The Board of AFH, a leading financial planning led wealth
management firm, is pleased to announce the completion of the
acquisition of CTL Three Limited, together with its subsidiaries;
The Insurance Partnership Financial Services Limited; PCWM Limited;
IFA Professional Planning Limited; Private Client Wealth Management
(Yorkshire) Limited and Kirk Ella Investments Ltd, (together
"CTL"). As a result of the transaction Paul Hodgson, Paul Newman,
Shane Beardsley and Victoria Hicks, together with 22 advisers and
their support staff, will join AFH bringing over GBP530m of FUM.
The acquisition significantly expands the AFH presence in the North
East.
Under the terms of the acquisition, the maximum purchase price
is GBP10m dependent upon performance criteria of the business
acquired. The initial consideration for the acquisition will be
satisfied by a cash payment of GBP4.2m, funded from the Company's
existing cash resources, and the issue of 26,178 ordinary shares of
10 pence each in the Company ("the Consideration Shares") to Paul
Hodgson at 382p, being the average mid-market price of the three
days prior to completion. Further deferred consideration will be
payable in cash over the next 26 months, subject to enhanced
performance criteria of the business being achieved. For the twelve
month period ended 30 June 2018, CTL achieved revenues of GBP4.7m
and profit before tax of GBP1.1m. On a post-acquisition pro-forma
basis, the business would have generated an estimated profit before
tax in excess of GBP1.4m during the period.
Application has been made for the admission of the Consideration
Shares to trading on AIM. The Consideration Shares will rank pari
passu in all respects with the existing ordinary shares of the
Company. The Consideration Shares are expected to be admitted to
trading on AIM on 6 December 2018.
Following the issue of the Consideration Shares, the issued
share capital of the Company will comprise of 42,051,498 ordinary
shares of 10 pence, each with one voting right. The above figure
may be used by shareholders in the Company as the denominator for
the calculations by which they will determine if they are required
to notify their interest in, or change to their interest in, the
share capital of the Company.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"The acquisition of CTL is our third transaction of the year and
significantly expands AFH's national footprint with over 240
advisers working across the UK and over GBP5bn of FUM. At the start
of the 2017 financial year, the Board set itself three medium term
financial aspirations: FUM of greater than GBP5bn, revenues of
GBP75m per annum and underlying EBITDA margin of 20% on revenue.
The acquisition of CTL takes our FUM to above GBP5bn and we remain
confident of achieving the remaining targets.
This is our third acquisition in the North East since June 2018
and as a result AFH now have over 50 advisers located in the
region. Under Paul and his management team's leadership CTL has
built a strong presence in the North East and I am pleased to
welcome Paul and his team to the AFH community. I look forward to
working with them to further the development of the AFH brand and
continue our growth for the benefit of our new clients and to
increase shareholder value."
Enquiries:
AFH Financial Group PLC 01527 577 775
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
www.afhfinancialgroup.com
Liberum (Nominated Adviser and Broker) 020 3100 2000
John Fishley/Richard Bootle /Euan Brown
This announcement is released by AFH Financial Group plc and
contains inside information for the purposes of Article 7 of the
Market Abuse Regulation (EU) 596/2014 (MAR), and is disclosed in
accordance with the Company's obligations under Article 17 of
MAR.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of the Company by Paul Wright, Chief Financial Officer.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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December 03, 2018 02:00 ET (07:00 GMT)
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