2 Feb 2015 07:00
2 February 2015
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITIONS
AFH acquires Roxborough Consultancy Limited and First Class Financial Management Ltd
The Board of AFH is pleased to announce the acquisition of Roxborough Consultancy Limited ("Roxborough") based in Didcot, Oxfordshire, and the acquisition of the assets of First Class Financial Management Ltd ("First Class"), based in West Bromwich. The principal of Roxborough will retire following completion and existing AFH advisers will take over their client relationships. These two acquisitions will add a further £55m to the Company's Funds Under Management.
Under the terms of the acquisition of Roxborough, the maximum consideration payable by AFH is £911,760 in cash, satisfied by an initial cash payment upon completion of £476,760, followed by a further cash consideration of up to £435,000, payable over the next 26 months in two tranches and dependent upon performance criteria of Roxborough over the next two years. The consideration will be satisfied from AFH's existing cash resources. For the year ended 31 March 2014 Roxborough generated a profit before taxation of £185,793 and, as at 31 March 2014, Roxborough had net assets of £370,749.
Under the terms of the acquisition of the assets of First Class the maximum consideration payable by AFH is £84,000.
The acquisitions of First Class and Roxborough were completed on 4 December 2014 and 30 January 2015, respectively. These two transactions represent the fifth and sixth acquisitions since the Company listed on AIM in June 2014.
Today's news follows the acquisition of Knight O'Byrne in November 2014, further underpinning AFH's strategy of select national expansion.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"We continue to seek, select and complete opportune acquisitions in a post-RDR world. Today's news takes the Company to six acquisitions in only seven months since we migrated from ISDX to AIM. We offer IFA businesses, of all sizes irrespective of geography, the opportunity to either become part of a larger group or to allow the principals of those businesses the ability to realise value as they retire. We intend to focus our acquisition strategy on retiring IFAs over the coming months as part of our overall growth strategy."
Enquiries:
AFH Financial Group PLC 01527 577 775
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
www.afhfinancialgroup.com
Allenby Capital Limited 020 3328 5656
(Nominated Adviser and Broker)
Nick Naylor
Chris Crawford
Nick Athanas
Yellow Jersey PR Limited 07768 537 739
Dominic Barretto
Kelsey Traynor