5 Sep 2018 07:00
5 September 2018
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITION OF ASHTON HOUSE IFA LIMITED
The Board of AFH, a leading financial planning led wealth management firm, is pleased to announce the completion of the acquisition of Ashton House IFA Limited, a directly authorised firm based in Bedfordshire. As a result of the transaction Tony James will join AFH as a Financial Adviser and continue to support his existing client base whilst developing the AFH presence in the Home Counties.
Under the terms of the acquisition, the maximum purchase price is £2.6m dependent upon performance criteria of the business acquired. The initial consideration for the acquisition is £1.05m in cash, funded from the Company's existing cash resources. Further deferred consideration will be payable in cash over the next 26 months, subject to enhanced performance criteria of the business being achieved. For the twelve month period ended 31 October 2017, Ashton House made profit before tax of £370,000. On a post acquisition pro-forma basis the business would have generated an estimated profit before tax of £500,000 in the period.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"The acquisition of Ashton House extends AFH's client base and coverage within the Home Counties and complements other acquisitions made in 2018, including Harrison White and Monopoly Financial Consultants, which were announced earlier this year. I am pleased to welcome Tony to AFH and I look forward to working with him to develop the business and provide his existing clients with the benefits of the AFH proposition.
This is our thirteenth acquisition this year and together with the transactions recently announced reflects the activity we are seeing in the sector."
Enquiries:
AFH Financial Group PLC 01527 577 775
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
www.afhfinancialgroup.com
Liberum (Nominated Adviser and Broker) 020 3100 2000
John Fishley/Richard Bootle/Euan Brown
This announcement is released by AFH Financial Group plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Paul Wright, Chief Financial Officer.