2 Oct 2017 07:00
2 October 2017
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITION OF DUCHY WEALTH MANAGEMENT LIMITED
The Board of AFH, a leading financial planning led wealth management firm, is pleased to announce the completion on 29 September 2017 of the acquisition of Duchy Wealth Management Limited ("Duchy") based in Truro, Cornwall. Following the acquisition Simon Holdsworth will join AFH as an adviser.
Under the terms of the acquisition, the maximum purchase price is £630,000 subject to the fulfilment of certain profitability targets. Duchy will add approximately £60m FUM to the Company and for the financial year ended 31 March 2017 achieved reported profit before tax of £286,544.
The initial consideration for the acquisition is £0.31m in cash, funded from the Company's existing cash resources. Further deferred consideration of up to £0.32m in cash will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the business acquired.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"This thirteenth purchase of an IFA businesses during the current financial year demonstrates the continued high level of activity that we are seeing in the market. The latest acquisition enhances our position in the South West of England and I am pleased to welcome Simon to AFH and look forward to working with him to continue our growth in this region."
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
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.