AFH Financial Group Plc Completion of acquisitions (1940M)
13 Septembre 2019 - 8:00AM
UK Regulatory
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RNS Number : 1940M
AFH Financial Group Plc
13 September 2019
13 September 2019
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
Completion of acquisitions
AFH Financial Group plc (AIM: AFHP), a leading financial
planning led wealth management firm, announces it has completed two
acquisitions of IFA businesses with a maximum consideration of
GBP7.2 million, subject to performance criteria. The two deals will
bring a combined GBP215 million of Funds Under Management ("FUM"),
raising AFH's total FUM above GBP5.6 billion.
Under the terms of the acquisition of Mulberry Independent
Financial Advisers Limited ("Mulberry") based in Twickenham, four
advisers, including the founders and current directors, will join
AFH together with their support staff bringing their clients and
GBP170 million of FUM. The maximum purchase price is GBP5.3
million, dependent on the performance of Mulberry during the earn
out period. The initial consideration for the acquisition of GBP2.3
million was paid from existing cash reserves with the balance
payable in cash over a 26-month period.
AFH has also completed the acquisition of AE Garment Independent
Financial Services Limited ("AE Garment") based in Hemel Hempstead,
bringing in an additional GBP45 million of FUM. The maximum
purchase price is GBP1.9 million of which an initial consideration
of GBP1 million was paid in cash on completion. Further deferred
consideration will be payable in cash over the next 26 months,
subject to agreed performance criteria of the business being
achieved. Following the acquisition, Tony Garment retired from the
business with his clients allocated to existing AFH advisers.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"The announcement of these latest acquisitions follows our
recently completed GBP15 million placing in July 2019. Notably, the
acquisitions have been completed on attractive, value-enhancing
multiples, in line with our business model and those negotiated in
previous transactions. We continue to undertake due diligence on
the pipeline of acquisition opportunities that were referenced in
the placing announcement and look forward to updating the market in
due course.
"The Company continues to enjoy strong organic inflows of funds
from existing and new clients with low redemptions. During the
current year double digit gross inflows continue to be achieved
whilst outflows, including pension drawdowns, remain below 2%.
"As we continue to build AFH into the leading financial planning
led wealth management firm in the UK, we are primarily focused on
driving the organic growth of our business by providing
professional and cost-effective services to our clients and,
in-turn, enhancing profitability. Following the placing the Company
retains significant levels of cash and remains well placed in this
period of economic and political uncertainty to continue its record
of delivering profitable growth and enhanced shareholder
value."
Enquiries:
AFH Financial Group PLC 01527 577 775
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
Liberum (Nominated Adviser and Joint Broker) 020 3100 2000
Richard Bootle / Euan Brown / Kane Collings
Shore Capital (Joint Broker) 020 7408 4090
Hugh Morgan / Edward Mansfield / Daniel Bush
Yellow Jersey PR Limited (Financial PR) 077 4884 3871
Felicity Winkles / Joe Burgess / Annabel Atkins
Notes to Editors
AFH Financial Group (AIM: AFHP) is leading UK financial
planning-led wealth management firm based in the Midlands. Founded
in 1990 by CEO Alan Hudson, the Company provides wealth management
and financial advisory services to over 20,000 clients in the UK.
These services are delivered by over 450 professional advisers and
400 support staff.
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END
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