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Consolidator AFH makes seventh acquisition in a year

Consolidator AFH turns to London again for latest purchase

AFH Alan Hudson 700

Consolidator AFH has made its seventh acquisition this year, buying up London-centered IFA Parker Sage Independent Financial Advisers.

The four-adviser firm, which has offices in Canary Wharf, The City of London and Peterborough, has sold for an initial £1.88m in cash and £375,000 in AFH shares.

Parker Sage may earn almost twice as much again, £3.35m, over the next two years based on performance targets being met.

The maximum total consideration, £5.6m, is more than three and a half times recurring income at the firm, which was £1.5m for the year ended August 2016.

Parker Sage generated revenue of £2.2m in that period and reported pre-tax profit of £1.2m.

AFH boss: ‘We are not a consolidator’

However, in a statement to the stock exchange this morning, AFH said that on the basis of trading since then, ongoing revenues could top £3m for the year to this September.

Three Parker Sage advisers will join AFH as part of the deal.

AFH chief executive Alan Hudson says: “Parker Sage’s directors are very successful advisers who share both our values and vision for the future of the sector. I look forward to working with them in many years to come.”

AFH acquisitions this year have varied in geography, from Aberdeenshire-based Aberdeen Wealth Management and Devon-based Shield Direct in January, to Honiton-based IFA Bay Financial Management the following month.

AFH first entered London in February by acquiring south west London IFA Taylor Frost Wealth Management, its third purchase that month.


AFH Alan Hudson 700

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