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AFH boosts profits and eyes future deals

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Consolidator AFH has posted a 27 per cent increase in pre-tax profits from £1.6m to just over £2m for the year to 31 October.

In the the company’s annual results, published today, AFH says it has a “strong pipeline” of potential acquisitions supported by cash reserves of £6.7m, which have increased from £3.7m in 2015.

Funds under management increased by 11 per cent from £1.8bn in 2015 to £2bn.

The business says its 2016 performance was driven by its “captive distribution model”, used by its advisers, who added more than £200m of assets to discretionary portfolios.

In a joint statement, AFH chairman John Wheatley and group chief executive Alan Hudson comment: “This year has seen the early realisation of the benefits of scale and the infrastructure investment made in previous periods. Continued investment in technology, enabling a digitalised approach to our clients in the future, is expected to accelerate the benefits of scale and the infrastructure investment made in previous periods.

“In a year in which the group completed two acquisitions, the significant growth and improving margins are testament to the strategy set out by the board in 2014 to place financial planning through face-to-face advice at the forefront of our proposition, supported by a strong infrastructure and professional investment management team.”

AFH announced this month it is set to spend more than £1m acquiring the assets of two IFA firms: Aberdeenshire-based Aberdeen Wealth Management and Devon-based Shield Direct.

Last year, it bought Lancashire IFA David Rushton Associates and East Anglian IFA CRS Financial Planning.

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