Acquisition strategy is reaping rewards for wealth manager

Wealth management group AFH says it is well-positioned to take advantage of the ongoing consolidation in the IFA market after successfully integrating 13 acquisitions in the last year.

The Bromsgrove-based firm expects its full-year revenues to be up 35% to more than £33m – an increase that is also being driven by higher average levels of revenue generated by advisers.

Funds under management have also grown at the same rate, reaching £2.7bn at the end of October.

AFH chief executive Alan Hudson said: “The success and robustness of our acquisition model is reflected in the high level of acquisitions meeting earn out targets and the strong cash flow generated by the business to finance these earn out payments.”

AFH, which is listed on the Alternative Investment Market, raised £10m through a placing and has so far spent around £7m of that on acquisitions.

“AFH continues to be active in the market to acquire good quality IFAs whilst remaining focussed on ensuring shareholder value by executing acquisitions that are earnings accretive,” added Hudson.
 
“The board will continue to execute its strategy of making selective acquisitions and increasing AFH’s national footprint whilst providing a professional and cost effective service to our clients. The board believes that AFH remains well positioned to take advantage of opportunities as they arise.”