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AFH ups ante in acquisitions battle

Consolidator AFH is continuing to increase the size of its acquisitions, announcing this morning it has agreed to spend up to £10m on Hull-based advice group CTL Three Limited.

AFH will take on 22 advisers, along with their support staff and £530m in funds under management, in the deal which includes all of CTL’s subsidiaries: The Insurance Partnership Financial Services Limited; PCWM Limited; IFA Professional Planning Limited; Private Client Wealth Management (Yorkshire) Limited and Kirk Ella Investments Ltd.

AFH will pay £4.2m up front out of its existing cash reserves, and has offered a number of shares in the company to CTL managing director Paul Hodgson.

The remaining buyout payments are subject to meeting “enhanced performance criteria” over the next 26 months.

The £10m paid for the group is roughly 10 times the pre-tax profit of CTL of £1.1m.

The deal take AFH’s funds under management past £5bn, a target set by AFH at the start of the 2017 financial year.

Chief executive Alan Hudson says the firm “remains confident” that it will also meet its target of underlying EBITDA margin of 20 per cent on revenue and total revenues of £75m per annum.

AFH chief executive Alan Hudson says: “Under Paul and his management team’s leadership CTL has built a strong presence in the North East and I am pleased to welcome Paul and his team to the AFH community. I look forward to working with them to further the development of the AFH brand and continue our growth for the benefit of our new clients and to increase shareholder value.”

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