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AFH sees profits boost as it eyes future deals

AFH Alan Hudson 700
AFH chief executive Alan Hudson

Consolidator AFH has seen profits increase by a third over the last six months as it holds talks with a number of firms over future acquisitions.

AFH has posted a pre-tax profit of £1.2m for the six months to 30 April, an increase of 34 per cent from £860,000 at the same time last year.

Funds under management are up 17 per cent from £1.9bn to £2.2bn over the same period. AFH now has a total of 154 advisers, with revenue per adviser per year going from £156,000 to £180,000.

Between October and April the consolidator completed six acquisitions with a combined capped value of £4.5m. To date £2m has been paid upfront with the balance paid during the next two years based on performance targets. AFH has also paid £1.5m in deferred sums on acquisitions agreed between 2014 and 2016.

Last week AFH agreed two deals: Parker Sage IFA and protection specialist Eunisure.

In its trading update today, AFH chief executive Alan Hudson says: “AFH is currently assessing several further acquisitions which are in various stages of due diligence and negotiation.

“While AFH has a strategy of continuing to increase the average size of our 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. As a result the board expects to announce both strategic and tactical acquisitions in the future.”

He adds: “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 third party administration costs aligned to an appropriate risk-based investment model.”



Changing hands: Are clients losing out from adviser consolidation?

The FCA has fired a “warning shot” over advice firm acquisitions in a new report that has found issues with suitability and client communication. Money Marketing first revealed in December 2015 the FCA had asked consolidators to provide information on how they treat clients gained through acquisitions, and if those investors were automatically shifted into […]


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