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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.

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  1. What are AFH shares worth?

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