LONDON (Alliance News) - AFH Financial Group PLC, which owns independent financial advisers across the UK, on Thursday said that its balance sheet and pipeline of prospective acquisitions remain strong.
Further acquisitions are expected during the current financial year, ending October 2016, AFH said. In its last financial year, the company made 11 acquisitions. In December, AFH raised GBP6.2 million by selling shares to investors, with the aim of using the funds to acquire more IFAs.
The company had GBP8.0 million in cash on March 1, with GBP1.7 million of that amount representing capital requirements for its authorised businesses.
"The directors remain confident that the group is well positioned to take advantage of market opportunities as they arise," Chairman John Wheatley said.
During the first quarter of the current financial year, Wheatley said, the company made deferred payments, based on trading performance, of GBP1.6 million for acquisitions completed in previous periods, representing an average of 94% of the maximum potential payment across the deals.
"The board is also pleased to report that, in spite of the recent stock market turbulence, recurring revenue continues to remain strong as a result of the inflow of new funds during the period and the relatively conservative investment approach taken for our clients. As in 2015, gross margins remain above the 50% level," Wheatley said.
Shares in AFH were flat at 169.00 pence on Thursday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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