(Alliance News) - AFH Financial Group PLC said Friday it will continue to target acquisitions going forward and the "success" seen in 2019 has continued into the first four months of financial 2020.
AFH reported a sixth consecutive year of profit growth in the twelve months to October 31, with pretax profit rising 76% year-on-year to GBP13.7 million, on a revenue growth of 47% to GBP74.3 million.
Speaking at the financial advisor's annual general meeting on Friday, Chair John Wheatley said: "Underpinning the group's exceptional growth has been our strategy to increase shareholder value through the expansion of the AFH community. Throughout 2019, AFH delivered on this strategy both organically, by increasing the productivity of our advisers, as well as by executing value accretive acquisitions financed on an earn out model."
AFH made 8 acquisitions in financial 2019 and ended the period with over GBP6 billion in funds under management.
"Following a period of consolidation and whilst continuing to focus on cash generation and the organic growth of the business, the group remains open to executing further acquisitions should suitable opportunities present themselves, with a focus on smaller IFAs and larger businesses where the majority of advisers are employed or equity participants in the target company," Wheatley added.
Wheatley said AFH's success in 2019 has continued in the first four months of financial 2020, with revenue and fund inflows matching fourth quarter levels.
"We expect the growing requirement for professional financial planning to accelerate in the future and for the consolidation within the sector to continue as commercial factors and regulatory requirements encourage a smaller number of larger businesses to dominate the sector," the chair said.
Wheatley said the core business of AFH continues to be cash generative, and said the firm's adjustment within the unit has "negated the need for further working capital".
Shares in AFH Financial were down 3.6% in London on Friday morning at 350.85 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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