(Alliance News) - Wealth management firm AFH Financial Group PLC said Monday profit and revenue jumped significantly as organic and acquisitive growth pushed results higher, with the firm now focusing on organic growth opportunities.
For the year ended October 31, underlying earnings before interest, taxes, depreciation & amortisation is expected to "exceed" GBP17 million, up 64% compared to the GBP10.4 million reported the year prior.
Revenue is expected to rise 47% to over GBP74 million from GBP50.4 million the year prior. Of this rise in revenue, GBP29 million was generated through new business and GBP6.5 million from acquisitions during the year.
During the year, AFH completed eight acquisitions with a total consideration of up to GBP30 million. AFH will now focus on organic growth and enhancing cash generation.
Funds under management expanded to GBP6.0 billion from GBP4.4 billion the year before.
"The performance of AFH over the course of the year demonstrates the success of the group's strategy and business model," Chief Executive Officer Alan Hudson said. "We maintained our strong levels of growth, both organically and through acquisitions, and continue to deliver on our ambitious targets."
AFH is now targeting funds under management to rise to GBP10 billion alongside annual revenue of GBP140 million.
"The recent refinement of our model to place a greater focus on cash generation in these uncertain political and economic times will put AFH in a strong position as we enter the new year, focusing on organic growth and paying down our deferred earn-outs," Hudson added.
"This will free up significant cash flow in the medium term and enable us to continue to deliver on our goals without requiring further funding from the equity markets," Hudson continued. "We have consistently delivered strong levels of organic growth outside of our buy and build strategy over the last few years and are confident in our ability to deliver further value to shareholders following this change of focus."
Shares in AFH were 5.6% higher at 290.50 pence in London on Monday.
By Ahren Lester; ahrenlester@alliancenews.com
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