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True. And I made a mistake: it's a 16% premium on this morning's price. Agreed re moving, after the divi date, 29th this month.
May fall the day after!
I'm up over 50%, since Sept '19, so I can't complain.
Thanks for responding. :)
To be fair up a 1/3rd last few months. It has been a conviction hold for me for about 3 years. I think the take out price is pretty low on metrics but it is agreed so we probably need to move
Interesting that not a single comment here so far today!
Tbh I never like companies I'm in being taken over, and the premium is only 13% to this morning's starting price. I wouldn't be in here if I didn't think it had a lot more to offer than that.
Need to stay in till past 29/1 for the divi.
Anyone any recommendations for something similar??
Gone very quiet on in news regarding AFH anyone heard anything???
In the current climate, average savings must have gone through the roof for those who have been unaffected by furloughing and redundancy (those using financial advisers are probably on the whole largely unaffected). The average Joe has excess money at the end of each month that he has probably never had before and is investing it. I am a member of a few forums, totally unrelated to finance, and everyone is investing, particularly during the strong recovery. The brokers are also reporting record revenues. However, AFH fees appear to be flat-lining which is quite surprising. The reasons for this are not explained. Are AFH portfolios generally very UK biased, and it has seen it's clients pots shrink over the last year, hence lower fees? Any ideas anyone?
Rivaldo
it did drop to 232 for a Cpl of days but not looked back since
I was watching you as a sage:-)
Hope you have done elsewhere and we see this start to roll a bit more.
I feel AFH are far more ethical than St James's place and that in 3-5 years time the banks will cotton on that there is little money in lending and it will all be in financial advise and fund manging
I was lucky to buy 20k at 1 pound in a tax efficient start up purchase so will just wait it out for a retirement surprise:-)
I sold this morning, for better or worse.
I really didn't like this Money Marketing article (thx topriser), which sounds terrible. Particularly the "significantly" reducing recurring income and this paragraph:
https://www.moneymarketing.co.uk/news/afh-offers-staff-10-pay-cut-amid-covid-battle/
"“Our recurring income linked to investments has already reduced significantly and we believe that wealth management new business will decline or cease after tax year end,” Hudson wrote."
My sales were accepted without a price fall at first, but now the price seems to be falling. I note that AFHP haven't yet issued a Covid-19 update, so if that article is anything to go by it won't read well.
Good luck to holders.
Moving up seemingly on every buy.
Financial services specialists Charlton Illingworth have analysed the entire sector to come up with a table showing the best value/cheapest to most expensive stocks based on historic P/E versus CAPE.
AFHP are the cheapest stock of all the 51 stocks measured.....
Https://www.charltonillingworth.co.uk/valuations-lawyers-lenders/
"With no clue what earnings might be this year I checked my watchlist for historic PE vs the year average PE inflation adjusted. The list is below."
There should be a dramatic recovery here once the markets stabilise.
Liberum have reiterated their 569p target price. And they state that AFHP are the least affected by falls in equity markets of any of the stocks in their asset-linked coverage.
This is because of the higher proportion of revenues in AFHP arising from initial advice fees and Protection Broking, which are unrelated to market movements.
They note that a 10% fall in equities would only results in a 5% fall in AFHP's EPS. So at present the impact to AFHP should be only a maximum 10% - and that's only if the fall remains in place for a full year.
This year's EPS 33p EPS forecast to 31st October should therefore fall only to 31p EPS or so - if the current decline continues for the rest of the period.
The forecast for the year starting this November remains at 37.1p EPS.
And AFHP are still trading at a huge discount to other listed financial advisers - the others trade at an average P/E of 17.2 compared to AFHP's 6.4 (and wealth managers trade on a P/E of 12.6).
Excellent AGM statement, with a very strong start to trading for this year, plus the likelihood of further earnings-enhancing acquisitions following strong cash generation:
Https://uk.advfn.com/stock-market/london/afh-financial-AFHP/share-news/AFH-Financial-Group-Plc-AGM-Statement/81928646
Good to see a Non-exec director buying another £25,000 of AFHP shares:
Https://www.investegate.co.uk/afh-fin-group-plc--afhp-/rns/director-pdmr-shareholding/202003021507297329E/
Just topped up here. Drop looks overdone given the growth potential here and the prospective PE.
Choo Choo
Nice - a £752,500 buy at 430p just reported....
New all-time highs today - and on almost 1m shares traded too, so very healthy volumes and demand out there.
Yet at 420p AFHP are still only on a current year P/E of 12.8.
"The group’s three to five-year strategy is very clear: it aims to have AuM of £10bn producing some £140m of revenues and operating on a 25% underlying EBITDA margin on revenue (last year it was up from 20.6% to 23.2%).
Based on its previous record I do believe that all of those targets look totally achievable.
Liberum Capital and Shore Capital, joint brokers to the company, both rate the shares as a ‘buy’ and, after the recent results, Liberum has actually raised its sights from 484p to 569p.
The whole of the financial sector, especially those companies with funds under management, is seeking strong growth and as such I do feel that AFH could become a predator’s target. And it is valued at only £165m.
With its shares currently trading at around the 388p level, they look like a cheap growth stock to me.
Cautiously, I now set my end-2020 target price at 480p."
Https://masterinvestor.co.uk/equities/afh-financial-is-going-for-growth/?utm_source=Daily+Bulletin&utm_campaign=67b7e8cb41-Daily_Bulletin_2020206&utm_medium=email&utm_term=0_25eff0bb7f-67b7e8cb41-34898813
"AFH Financial is going for growth
By Mark Watson-Mitchell
06 February 2020
Now with over £6.2bn assets under management, this group is aiming for £10bn, writes Mark Watson-Mitchell.
Established way back in 1990, this company, which joined AIM in 2014, has grown significantly, especially over the last few years as it tucked more companies into its fold.
The company announced its end-October 2019 final results a couple of weeks ago, they reported the sixth consecutive year of strong revenue and earnings growth since it came to the market.
Today the Bromsgrove, West Midlands based group AFH Financial (LON:AFHP) has 12 offices across the UK and counts over 200 independent financial advisers amongst its ranks. It has over £6.2bn of assets under management, having grown 40% in the last financial year alone.
The group has three main operating subsidiaries: AFH Wealth Management; AFH Private Wealth; and Eunisure.
AFH Wealth Management’s IFAs provide financial planning-led wealth management advice and a variety of services to the UK’s high net worth private client market. They also act for a number of corporates. It is this division that handles the £6.2bn AuM.
AFH Private Wealth is possibly more exclusive in its services, in so much as it appoints personal dedicated client executives to handle special wealth management support and advice for the group’s more discerning investor clients.
Eunisure has a network of more than 300 protection advisers across the UK. Health, lifestyle and income – this company provides its clients with affordable insurance solutions to cover what they need to value and protect.
The group has some 42.8m shares in issue, of which 13.2m are held by boss Alan Hudson and his board.
Large holders include Slater Investments (10.65%), Lombard Odier (6.34%), Northern Trust (5.09%), Merian Global Investors (4.99%), BMO Global (3.96%), Polar Capital (3.83%), and Rorema Beheer (3.70%).
The policy of growth by both organic expansion and strategic acquisition is very evident when you look at the group’s revenue and profit record over the last three years. From sales of £33.6m in 2017, to £50.6m in 2018 and up to £74.3m for the year to end-October 2019.
Operating profits in that period rose from £3.73m in 2017 to £7.94m in 2018 and up to £14.0m last year.
The profit after tax was up 82% to £10.8m in 2019, pushing earnings up from 16.0p to 25.4p per share. Conservatively the dividend rose just 33% to 8p per share.
Trading in the current year remains strong and the group has plenty of cash to meet requirements. Estimates for net income this year suggest £12.1m and then up to £14.6m next year. The growth continues."
Breaking upwards again today. Still a long way to go to Liberum's 569p target.
Good to see further institutional demand boosting the company's coffers, with one buyer taking £240,000 of stock from AFHP's treasury shares at 390p each:
Https://www.investegate.co.uk/afh-fin-group-plc--afhp-/rns/sale-of-treasury-shares-and-total-voting-rights/202002041620599594B/
Rivaldo
looking good here
Massive shortage of financial advisers out there that is the bottom line to be frank.
Even those rob dogs St James's Place are rising
I cant see it taking to long before the Banks dip a toe back into the market and swallow up a good little company like this
Keep accumulating providing they can pay for them selves I say
Tipped on ************* by Malcolm Stacey:
Https://www.*************.com/views/47048/wealth-management-outfit-scorches-ahead-as-demand-grows
"Wealth Management Outfit Scorches Ahead as Demand Grows
By Malcolm Stacey
Hello, Share Scrapers. Since I last commended wealth manager AFH Financial Group (AFHP) to your attention last year, the share price has risen by about 15%. Not that there wasn’t some toppling backward in that time. However, the shares soon recovered and have gone on to deliver a tasty profit. Numbers released a few days ago offered even more encouragement...
etc"
Pushing up again today to new recent highs following the news of Mark Slater's buying.
Great to see Mark Slater buying more AFHP - Slater Investments are now up to 12.2% with 5.2m shares:
Https://www.investegate.co.uk/afh-fin-group-plc--afhp-/rns/holding-s--in-company/202001271230190289B/
So they've bought another 645,000 shares in the last couple of months.
Here's the IC's Buy tip:
"Tip Update: Buy at 385p
By Alex Newman
AFH Financial (AFHP) reported “steady progress” towards its long-term goals this week, as the financial planning-led wealth manager unveiled stable margins, a 40 per cent rise in funds under management, and another leap in revenues in its October year-end financial statement.
Earnings also strengthened, thanks to a switch in the revenue model within the group’s protection broking division. Here, underlying cash profits doubled to £5.4m, while the gross margin ticked up from 44 to 54 per cent.
That has also boosted cash generation, which should provide further evidence to investors that AFH’s historically acquisition-dominated strategy can be self-funded. On this front, discernment has been the watchword, as management concentrates on technology investments and organic revenue growth.
Should an attractive takeover target appear, then the post-period signing of a £12m loan facility with HSBC has given the group flexibility to move quickly and avoid the need to tap the equity market. Chief executive Alan Hudson reports a strong pipeline of potential deals, but has relaxed his valuation criteria from four to five times’ cash profits for larger high-quality candidates.
Broker Liberum expects adjusted earnings of 32.7p per share for the year to October 2020, and 36.8p in FY2021.
IC View
Though AFH shares have rebounded strongly since their autumn lows, they continue to trade at just two times’ broker Liberum’s sales forecast for the current financial year. Leverage is under control, target valuations are not rising, and the demand for local independent financial advice remains under-supplied. This is a strong growth story: buy."