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AFH profits soar as it plots further acquisitions

AFH Alan Hudson 700
Alan Hudson

Consolidator AFH has reported a 177 per cent increase in profit after tax for the first half of the year as its acquisition ambitions show no sign of waning.

The company’s profit increased to £2.5m from £900,000 in 2017 and funds under management grew to £3.2bn from £2.2bn in the same period last year.

Revenue also rose to £22.7m from £13.9m, a 63 per cent increase.

In the first half, AFH bought six firms for an initial amount of £3.2m. The firms include Hertfordshire-based firms Mark Hughes & Associates and Harrison White FS and the assets of Meritor, the financial advisory business of law firm Freeths.

In the statement, the company notes its “strong balance sheet” to allow it to carry out further acquisitions. It has £23.7m cash reserves.

The results statement says: “Whilst AFH has a strategy of continuing to increase the average size of its acquisitions, the company also remains committed to providing an exit for retiring IFAs where our existing advisers can offer the full AFH service to the acquired client base.”

It adds: “As a result, the board expects to announce both strategic and tactical acquisitions in the future.”

Over the six-month period, initial advice fees reached £5.6m, a 37 per cent increase that the company attributes to it having more clients.

Ongoing fees increased to £13.2m (2017: £9.8m) and annualised revenue per adviser increased to £220,000 from £180,000 in the same period the year before.

Group chief executive Alan Hudson says: “The strategy of the company continues to be to generate long term value for shareholders by providing exceptional value and service to our clients and using our increasing size to drive down platform and fund management charges aligned to an appropriate risk based investment model.”

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