LONDON (Alliance News) - AFH Financial Group PLC Monday said its pretax profit fell during 2014 despite revenue increasing by almost 50%, as the company reported higher administrative expenses linked to one-off costs related to the company's initial public offering in 2013.
The financial advisory and discretionary wealth management firm reported a pretax profit of GBP861,000 for the year ended December 31, falling from a profit of GBP1.0 million in 2013 despite revenue rising during the year.
Revenue for the period increased by just under 50% to GBP15.0 million from GBP10.8 million, but administrative expenses rose to GBP6.8 million from GBP4.6 million after the company incurred one-off exceptional costs related to the company's initial public offering in October 2013.
This led to an operating profit of GBP900,000 in 2014, down from GBP1.1 million a year earlier.
Pretax profit, before the exceptional one-off initial public offering costs, increased slightly to GBP1.1 million from GBP1.0 million.
Despite the fall in profit, the company upped its dividend by 20% to 1.50 pence per share from the 1.25 pence per share paid in 2013.
Cash at the end of the year totalled GBP5.7 million with no debt.
"The group has proven consistent profitability and cash generation and maintains a strong balance sheet for the current size of its business. The board believe that it has implemented the appropriate infrastructure to support its growth plans for 2015 and beyond and will actively seek appropriately priced acquisition opportunities during 2015 to generate additional revenue, drive increased profitability and grow funds under management," said Non-Executive Chairman John Wheatley.
"The current year has started in line with trading levels experienced during the second half of 2014, with recurring revenue continuing to grow in line with the Directors' expectations," added Chief Executive Alan Hudson.
AFH Financial shares were trading up 0.1% at 150.63 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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