LONDON (Alliance News) - AFH Financial Group PLC Tuesday said it is considering the addition of debt to its balance sheet as it eyes acquisitions of independent financial advisers.
In a statement, the independent financial advisory and discretionary wealth management business said it has noted an increase in the size and rate of independent financial advisers becoming available for purchase. It expects the trend to continue throughout 2015, prompting it to consider "additional financing options".
AFH said it may use fixed interest instruments, alongside its equity base, to introduce a "modest level" of borrowing into its balance sheet in the current financial year in order to take advantage of the trend and potentially improve returns to shareholders.
The company said it had more than GBP5 million in cash at the end of October and remains "well positioned" to take advantage of the consolidation activity in the IFA market in the wake of new regulations known as the Retail Distribution Review, aimed at protecting consumers and making companies providing financial advice more professional and transparent.
AFH also said it expects results for its current financial year to be in line with market expectations, and is confident about its prospects for the next year.
In a statement, AFH said it expects further expansion of its national presence during 2015, including acquisitions in London and the South East, after a year marked by its expansion into Scotland and East Anglia.
"The company's results for 2014 will represent another important milestone in AFH's journey to become one of the UK's leading IFAs. The board continues to execute its strategy of making selective acquisitions and increasing the breadth of AFH's national footprint," Chief Executive Alan Hudson said in a statement.
AFH shares were untraded on Tuesday. They were last traded at 150.5 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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