13 Sep 2019 07:00
13 September 2019
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
Completion of acquisitions
AFH Financial Group plc (AIM: AFHP), a leading financial planning led wealth management firm, announces it has completed two acquisitions of IFA businesses with a maximum consideration of £7.2 million, subject to performance criteria. The two deals will bring a combined £215 million of Funds Under Management ("FUM"), raising AFH's total FUM above £5.6 billion.
Under the terms of the acquisition of Mulberry Independent Financial Advisers Limited ("Mulberry") based in Twickenham, four advisers, including the founders and current directors, will join AFH together with their support staff bringing their clients and £170 million of FUM. The maximum purchase price is £5.3 million, dependent on the performance of Mulberry during the earn out period. The initial consideration for the acquisition of £2.3 million was paid from existing cash reserves with the balance payable in cash over a 26-month period.
AFH has also completed the acquisition of AE Garment Independent Financial Services Limited ("AE Garment") based in Hemel Hempstead, bringing in an additional £45 million of FUM. The maximum purchase price is £1.9 million of which an initial consideration of £1 million was paid in cash on completion. Further deferred consideration will be payable in cash over the next 26 months, subject to agreed performance criteria of the business being achieved. Following the acquisition, Tony Garment retired from the business with his clients allocated to existing AFH advisers.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"The announcement of these latest acquisitions follows our recently completed £15 million placing in July 2019. Notably, the acquisitions have been completed on attractive, value-enhancing multiples, in line with our business model and those negotiated in previous transactions. We continue to undertake due diligence on the pipeline of acquisition opportunities that were referenced in the placing announcement and look forward to updating the market in due course.
"The Company continues to enjoy strong organic inflows of funds from existing and new clients with low redemptions. During the current year double digit gross inflows continue to be achieved whilst outflows, including pension drawdowns, remain below 2%.
"As we continue to build AFH into the leading financial planning led wealth management firm in the UK, we are primarily focused on driving the organic growth of our business by providing professional and cost-effective services to our clients and, in-turn, enhancing profitability. Following the placing the Company retains significant levels of cash and remains well placed in this period of economic and political uncertainty to continue its record of delivering profitable growth and enhanced shareholder value."
Enquiries:
AFH Financial Group PLC 01527 577 775
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
Liberum (Nominated Adviser and Joint Broker) 020 3100 2000
Richard Bootle / Euan Brown / Kane Collings
Shore Capital (Joint Broker) 020 7408 4090
Hugh Morgan / Edward Mansfield / Daniel Bush
Yellow Jersey PR Limited (Financial PR) 077 4884 3871
Felicity Winkles / Joe Burgess / Annabel Atkins
Notes to Editors
AFH Financial Group (AIM: AFHP) is leading UK financial planning-led wealth management firm based in the Midlands. Founded in 1990 by CEO Alan Hudson, the Company provides wealth management and financial advisory services to over 20,000 clients in the UK. These services are delivered by over 450 professional advisers and 400 support staff.