Acquisitive wealth management firm boosts revenues almost 50%
Wealth management firm AFH says it expects revenues to exceed £50m, up 49%, on the back of a string of acquisitions completed during the year.
In a trading update for the 12 months to October 31, the Bromsgrove-based business, which made 16 acquisitions in the period contributing around £4m to its revenue, said there was a strong pipeline of potential deals currently under negotiation.
Funds under management reached £4.5bn, up from £2.8bn in 2017.
AFH said it remains confident of the company’s prospects and achieving its stated objectives of revenues of £75m, underlying EBITDA margin of 20% and £5bn funds under management.
Earlier this month, following the year end, the company announced the acquisition of Premier Wealth Management Harrogate for a maximum consideration of £4.5m.
CEO Alan Hudson said: “I am encouraged by the exceptional progress we have made in 2018 towards the realisation of the revenue, profitability and Funds under Management targets that we set ourselves. The ability to grow revenues by 49% whilst continuing to expand our EBITDA margin reflects the success of the company’s strategy.
“During the year we have completed on 16 acquisitions whilst remaining focussed on ensuring shareholder value by executing acquisitions that are earnings accretive. The success and robustness of our acquisition model is reflected in the continued high level of acquisitions meeting earn out targets and the strong cash flow generated by the business to finance these earn out payments.
“The support of new and existing institutional shareholders throughout the year has provided the company with the funds to continue to acquire a number of earnings accretive IFA businesses, whilst expanding our national footprint at a time when the requirement for financial planning and personal asset management continues to grow. Our fundraising in October, against the backdrop of difficult equity markets, has enabled us to continue to evaluate several attractive future acquisition opportunities.”
