(Alliance News) - AFH Financial Group PLC on Monday reported sharp growth in both annual profit and revenue and the financial planner's funds rose on the back of eight acquisitions completed during financial 2019.
In the year ended October 31, the financial advisor's pretax profit jumped 76% year-on-year to GBP13.7 million from GBP7.8 million.
Revenue grew 47% to GBP74.3 million from GBP50.7 million the year before.
AFH ended financial 2019 with GBP6.17 billion in funds under management, which is 40% higher than the GBP4.40 billion seen at the beginning of the period. The rise was driven by GBP1.17 billion of inflows from acquisitions. AFH recorded net organic inflows of GBP350 million, with market movements adding GBP250 million.
During the year, AFH completed eight acquisitions.
"While integration of several of the larger transactions has taken longer and required more management involvement than in past years, it is equally fulfilling to report that most acquisitions have traded successfully," AFH added.
As a result of the strong performance, AFH's declared a total dividend for the year of 8.0 pence, 33% higher than the 6.0p distributed in financial 2018.
"I am delighted to report on yet another year of continued progress for AFH in the financial planning-led wealth management market. The year under review produced a sixth consecutive year of growth and improved profitability since joining AIM in 2014," said Chief Executive Alan Hudson.
"The group's strategy to increase shareholder value through the expansion of the AFH community remains at the heart of our growth. This strategy continues to be driven by a combination of organic growth through greater productivity of our advisers and by value accretive acquisitions financed on an earn out model," Hudson continued.
He added: "This approach has enabled the group to enjoy annual double-digit organic inflows of funds under management and to maintain our low level of outflows in spite of the market pressures; to maintain our high levels of recurring revenue since we joined AIM in 2014 and to maintain gross margins and generate operating efficiencies to drive growth in earnings per share."
AFH said trading in the first few months of financial 2020 remains "strong" and is in line with board expectations.
In early 2019, AFH set itself a three-to-five target of reaching GBP10 billion in funds under management with revenue per annum of GBP140 million. The company said Monday it is confident of achieving this goal.
Shares in AFH Financial Group were up 4.7% in London on Monday morning at 402.99 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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