AFH Financial Group gobbles up HTH

(Sharecast News) - Wealth management firm AFH Financial Group announced the completion of the acquisition of the client portfolios of HTH Group and its subsidiary companies Thomas Heald and Thomas Heald Solutions, based in Chesterfield with satellite offices in Leeds and Doncaster, on Tuesday.The AIM-traded company said that as a result of the transaction 26 advisers including the principals Nick Thomas, Chris Holland and Nick Heald, together with their support staff, would join AFH.It said that under the terms of the acquisition, the maximum purchase price was £5.1m depending on performance criteria of the businesses acquired.During the year ended 31 March, the combined business reported a profit before tax of £0.37m.However, on a pro-forma forward-facing basis the EBITDA of the business was £1.0m with targeted profitability of £1.25m.The initial consideration for the acquisition was £2.3m in cash, funded from AFH's existing cash resources.Further deferred consideration would be payable in cash over the next 26 months, subject to performance criteria of the businesses being achieved."Our 11th and largest acquisition of the financial year is the purchase of an established IFA business in Derbyshire and Yorkshire providing both financial planning and mortgage and protection services to a large client base," said AFH chief executive Alan Hudson."I am pleased to welcome Nick Thomas, Nick Heald and Chris Holland, together with their team, to AFH. I look forward to working with them in the future and to provide their existing clients with the benefits of the full range of AFH services."The market remains buoyant and our pipeline of opportunities continues to expand across the country."