Wealth management group plans £10m war chest

Alan Hudson, CEO, AFH Financial

Worcestershire wealth manager, AFH Financial Group has announced a £10m share placing as it looks to fund a war chest for new acquisitions.

Alan Hudson, CEO of the Bromsgrove-based company, has agreed to sell up to 1,000,000 of his existing ordinary shares to raise gross proceeds of up to £1.75m.

The company said that since October 31, 2016, it had completed five acquisitions paying a combined £2m in initial cash consideration.

It said the core business continued to perform in line with expectations with strong recurring revenue and further additions to funds under management.

As at March 1, 2017, the company had cash balances of £4.1m and it said it was fully funded to satisfy the deferred consideration liabilities of announced acquisitions to date.

“The board believes that the opportunity exists to acquire appropriately priced businesses and that the net proceeds of the placing will provide the company with a strong platform to finance such acquisition opportunities as well as providing funds for general corporate purposes,” it said, announcing that latest placing to the London Stock Market.

“The near-term pipeline is particularly attractive, with four potential deals currently at various stages of the due diligence and engagement process. In addition to these four potential deals, the company continues to assess other potential acquisitions to further accelerate its growth.”

Liberum Capital is acting as nominated adviser, broker and sole bookrunner in connection with the placing.