14 Jan 2019 07:00
14 January 2019
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITION OF HAYBURN ROCK GROUP LIMITED
AFH Financial Group PLC (AIM: AFHP), a leading financial planning led wealth management firm, announces the completion of the acquisition of Hayburn Rock Group Limited and its subsidiary companies ("Hayburn"), based in Stourbridge, West Midlands. As a result of the acquisition Stephen Perks together with nine advisers will join AFH, bringing over £100m of FUM, and continue to support their existing client base.
Under the terms of the acquisition, the maximum purchase price is £3.5 million dependent upon performance criteria of the business acquired. The initial consideration for the acquisition is £0.9 million in cash, funded from the Company's existing cash resources. Further deferred consideration will be payable in cash over the next 29 months, subject to enhanced performance criteria based on post completion post synergy profitability. For the twelve month period ended 31 December 2017, the business reported revenues of £2.1 million and profit before tax of £0.4 million.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"The acquisition of Hayburn is our fourth transaction this financial year and further consolidates AFH as a leading financial planning led wealth management firm in the West Midlands and indeed the UK. Hayburn is a local business to AFH which should enable an efficient integration process. I am pleased to welcome Stephen and his team to AFH and look forward to working with them to provide their existing clients with the benefits of the full range of AFH services and to increase shareholder value."
Enquiries:
AFH Financial Group PLC +44 (0) 1527 577 775
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
www.afhfinancialgroup.com
Liberum (Nominated Adviser and Broker) +44 (0) 20 3100 2000
John Fishley/Richard Bootle /Euan Brown
Yellow Jersey PR Limited (Financial PR) +44 (0) 7748 843 871
Felicity Winkles/Tim Thompson/Annabel Atkins
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.