LONDON (Alliance News) - AFH Financial Group PLC said Monday it has completed the acquisition of CTL Three Ltd for a maximum purchase price of GBP10 million, taking the wealth manager's funds under management above GBP5 billion.
The deal includes CTL Three's subsidiaries: the Insurance Partnership Financial Services Ltd, PCWM Ltd, IFA Professional Planning Ltd, Private Client Wealth Management (Yorkshire) Ltd and Kirk Ella Investments Ltd. It will add over GBP530 million of funds under management to AFH.
"The acquisition of CTL is our third transaction of the year and significantly expands AFH's national footprint with over 240 advisers working across the UK and over GBP5 billion of funds under management," said Chief Executive Officer Alan Hudson.
"At the start of the 2017 financial year, the board set itself three medium-term financial aspirations: funds under management of greater than GBP5 billion, revenues of GBP75 million per annum and underlying earnings before interest, tax, depreciation and amortisation margin of 20% on revenue. The acquisition of CTL takes our funds under management to above GBP5 billion and we remain confident of achieving the remaining targets."
The initial consideration of for the acquisition will be a GBP4.2 million cash payment, funded from AFH's existing resources, and the issue of 26,178 AFH shares to Paul Hodgson - a director of CTL - at 382 pence each, worth GBP100,000.
Further deferred consideration will be payable in cash over the next 26 months, subject to performance criteria.
For the twelve month period to June 30, CTL recorded pretax profit of GBP1.1 million on revenue of GBP4.7 million.
Shares in AFH Financial were up 0.5% on Thursday at 385.00 pence each.
