ISDX-listed advice firm AFH Financial Group saw its pre-tax profits increase 44.3 per cent year-on-year in the six months to 30 April, following a raft of recent acquisitions.
The group’s interim results show it made a pre-tax profit of £279,160 in the six months to 30 April, up from £193,397 over the same period a year earlier.
The group’s primary subsidiary, AFH Independent Financial Services, made a pre-tax profit of £834,591 in the six months to the end of April, up 90 per cent on the £437,641 made a year earlier.
In June, AFH launched a new legal division for its clients, called AFH Legal, which has been licensed by the Solicitors Regulatory Authority from 23 July.
In June, AFH acquired Somerset-based IFA Shape Financial in a deal worth £1.5m, it 14th adviser acquisition since floating in June 2011. It paid an initial consideration of £125,000 for Shape, rising to a potential £1.5m, depending on the performance of the business in the two years following the deal.
While group turnover increased over the year, overall profitability was hit by the rising cost of administration and the cost of sales.
Group turnover increased from £3.1m to £4.8m in the six months to 30 April 2013, although its cost of sales increased from £1.5m to £2.3m over the same period.
Administrative expenses increased from £1.3m at 30 April 2012 to £2.1m as at 30 April 2013.
The group has around 120 advisers and currently has funds under influence of around £600m.
AFH chairman and chief executive Alan Hudson says: “Our first half performance has been strong and highly encouraging, especially when one takes into consideration the operational disruption caused by the Retail Distribution Review.
“The directors expect to report to shareholders an even stronger second half performance as new advisers and acquisitions start to fully contribute to the bottom line.”