1 Oct 2018 07:00
01 October 2018
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITION OF CORE FINANCIAL HOLDINGS LIMITED AND THE ASSETS OF CORE CORPORATE PLANNING LIMITED
The Board of AFH, a leading financial planning led wealth management firm, is pleased to announce the completion of the acquisition of Core Financial Holdings Limited and its subsidiary Core Financial Services Limited, (Core") a directly authorised firm based in Maidstone Kent together with the assets of Core Corporate Planning Limited ("Corporate Planning"). As a result of the transaction Mark Sutton together with nine advisers and their support staff, will join AFH bringing over £230m of FUM to significantly expand the AFH presence in the South East.
Under the terms of the acquisition, the maximum purchase price is £7.7m dependent upon performance criteria of the business acquired. The initial consideration for the acquisition is £3.2m 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 March 2018, the combined businesses reported combined revenues of £3.8m and profit before tax of £180,000. On a post acquisition pro-forma basis, the business would have generated an estimated profit before tax in excess of £1.4m.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"The acquisition of Core is our sixteenth transaction of the year and significantly expands AFH's position in the South East. I am pleased to welcome Mark and his team to AFH and I look forward to working with them to further the development of the AFH brand and continue our growth for the benefit of our new clients and to increase shareholder value."
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.