27 Jul 2015 07:00
27 July 2015
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITION OF QUEST FINANCIAL MANAGEMENT LIMITED AND THE ASSETS OF PHOENIX INDEPENDENT FINANCIAL SERVICES LIMITED
The Board of AFH, a leading financial planning led investment management firm, is pleased to announce the acquisition of Quest Financial Management Limited ("Quest") a Derby based IFA. The two advisers left Quest on completion of the acquisition and existing AFH advisers have taken over their client relationships.
Under the terms of the acquisition the maximum consideration payable by AFH is £585,000. The initial consideration has been satisfied by a cash payment upon completion of £292,500, satisfied from the Company's existing cash resources. Further deferred consideration of up to £292,500 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of Quest over the next two years.
The Board of AFH is also pleased to announce the acquisition of the assets of Phoenix Independent Financial Services Limited ("Phoenix"), a Blackburn based IFA, which was completed on 24th July 2015.
Under the terms of this acquisition, the maximum consideration payable by AFH is £489,345. The initial consideration has been satisfied by a cash payment upon completion of £240,250, satisfied from the Company's existing cash resources. Further deferred consideration of up to £249,095 will be payable in cash over the next 26 months in two tranches and dependent upon performance criteria of Phoenix over the next two years.
The acquisitions of Quest and the assets of Phoenix are the eleventh and twelfth acquisitions respectively since the Company listed on AIM in June 2014 and will, in aggregate, add approximately £320,000 of recurring revenue to the Company.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"Following the acquisition of Independent Financial Services (U.K.) Limited ("IFS") at the end of April we continue to offer IFA businesses 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."
"These are the eighth and ninth acquisitions made during this financial year which has seen AFH continue to leverage its centralised administration and support functions to develop its expansion nationally."
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