Acquisitions push AFH revenues up 40%

AFH Alan Hudson 700

Total revenue at advice consolidator AFH Financial grew 40 per cent during 2015 as the firm completed 11 acqusitions.

Year end results published today show revenues grew from £15m in 2014 to £21m last year.

Pre-tax profits were up by 86 per cent, from £860,000 to £1.6m, while funds under management with ongoing fee agreements doubled from £900m to £1.8bn.

AFH made 11 acquisitions of advice firms in 2015 at an average price of around £1m. The deals add around £700m to funds under management.

Chief executive Alan Hudson says after pausing activity in the second half of 2015, the company has entered into negotiations on a number of potential acquisitions.

New deals will be funded in part by £6.4m raised in December 2015 by the placing and subscription of new shares.

Chair John Wheatley says future deferred payments for acquisitions will be financed by existing resources and revenue generated by acquired businesses.

As at November 2015 the firm employed 158 advisers, up from 136 in 2014.

AFH is to pay 2.25p per share in dividends, up 50 per cent on 2015’s 1.5p per share dividend payment.

Hudson and Wheatley say: “Given the progress made in 2015 and the early months of the 2016 financial year, the directors view the coming period as providing excellent prospects and look forward to extending AFH’s brand, reach and reputation.”