LONDON (Alliance News) - AFH Financial Group PLC said Friday it acquired Premier Wealth Management Harrogate Ltd for up to GBP4.5 million in cash.
AFH will pay an initial GBP2.0 million in cash for York-based Premier Wealth. The remainder of the acquisition price will be payable over the following 26 months depending on performance criteria being achieved.
As part of the deal, the staff of Premier Wealth - including senior directors Richard Evans and Andrew Huby - will join AFH.
In 2017, Premier Wealth generated GBP350,000 in pretax profit on revenue of GBP700,000. Since that time, however, the firm has seen "significant" growth in revenue and profit with the current revenue run-rate of GBP1.2 million. It currently has over GBP90 million in funds under management.
For the year ended October, AFH generated GBP3.5 million in pretax profit from GBP33.6 million in revenue.
"The acquisition of Premier is the first transaction of our new financial year and, following the acquisition of Thomas Heald in August, continues the expansion of AFH in the North East," AFH Chief Executive Officer Alan Hudson said. "Premier has demonstrated high levels of profitable growth and I am pleased to welcome Richard and his team to AFH. I look forward to working with them for the benefit of our new clients and to increase shareholder value."
Shares in AFH were 0.5% higher at 381.00 pence on Friday.