Financial services group profits from acquisition strategy

Bromsgrove financial services group AFH is reaping the rewards of its aggressive acquisition strategy.

It has revealed its financial performance for the six months to April, which show a 63% increase in revenues, to £22.7m, and a 180% increase in pre-tax profits, to £3.2m.

AFH chief executive Alan Hudson said: “These results are further vindication of our strategy to generate long-term value for shareholders by providing exceptional value and service to our clients and using our increasing size to drive down platform and fund management charges.”

The group has been averaging a deal every month for the last couple of years as it looks to consolidate the market. Its most recent acquisition saw it buy Freeths’ financial advice business, Meritor, last month.

Hudson added: “Our pipeline remains strong with a number of opportunities at the due diligence stage or in contract negotiations at the period end. And while we are looking to increase the average size of our acquisitions, we remain committed to providing an exit for retiring IFAs.”

AFH has increased its funds under management by 40% to £3.2bn during the period.