AFH grows portfolio again with new acquisition

Worcestershire IFA, AFH, has strengthened its presence in the market with a further acquisition.

The Bromsgrove group has acquired the business and assets of CH Financial, an FCA authorised IFA based in Hemel Hempstead with more than £70m of  funds under management, mainly for clients in London and the Home Counties.

In the year ended March 2013, CH Financial had revenues of £559,000, of which £333,000 comprised recurring income.

The deal sees David Chenkin, the vendor of CH Financial, join AFH.

The deal comprises an initial cash payment of £360,000 from the company’s existing  resources, while a further consideration, up to a maximum of £640,000, may be payable over the 26 months following the acquisition, depending on the performance of CH Financial in that period.

Investors reacted favourably to the news, with AFH shares rising almost 8% in early trading.

Today’s news follows AFH’s recent £2.8m fundraising to provide additional working capital for the business and to finance potential future acquisitions.

The deal marks the company’s 15th acquisition since its original listing on ISDX in June 2011 and the second  since the Retail Distribution Review (RDR) was implemented on January 1, 2013.

Commenting on the latest acquisition, Alan Hudson, chairman and chief executive of AFH, said: “With RDR  fully implemented, we are delighted to announce today’s acquisition as we further advance our position in the
South East of England.

“The last six months has seen a period of high activity at the company. AFH is a dividend paying business with a  strong balance sheet, offering potential partners and investors access to a fast-growing, acquisitive public company.

“We  continue to make well-timed, select investments, and are pleased to welcome David Chenkin to AFH. He
will add significant value with his extensive experience in the industry.”