Wealth management firm continues acquisitive streak with biggest deal to date
Bromsgrove-based wealth management firm AFH has completed its largest ever acquisition – a £10m deal that takes the group’s funds under management to more than £5bn and one which expands its presence in Yorkshire.
Joining forces with Hull-based CTL Three group also gives AFH four offices in Yorkshire and takes its adviser team to around 250.
CTL Three trades as the Insurance Partnership Financial Services, Kirk Ella Investments, PCWM, IFA Professional Planning and Hallgarth Wealth Planning and has offices in Hull, York and Scunthorpe.
CTL Three managing director Paul Hodgson will become AFH’s regional director for the north of the country, an area where AFH is keen to expand its presence further after several recent acquisitions.
Hodgson said: “The decision to join forces with AFH does not indicate the end of our ambitions – quite the opposite. We’ve grown to a size where the move to the next level would require significant investment. That left us either having to raise new funding or find the right business to join.
“Having looked at the market and spoken with several potential consolidators, it was very evident that AFH was the standout option given both their commitment to the client at the centre of their business, and their overall culture which aligns with ours. This, combined with the group’s growth aspirations, made it a very straightforward decision.
“We look forward to working with Alan and the team at AFH. Our clients will still be dealt with by the same advisers and administration team, but will now have access to AFH’s unique service proposition, including zero platform fees and low-cost delegated authority funds.”
AFH chief executive Alan Hudson said:“This is a historic deal for AFH. With £5bn now under management we have met one of our group three to five year objectives – after just two years.
“We are now established as one of the largest financial advisers in Yorkshire and the North East, and in his new role as regional director Paul will be looking to expand that presence even further.”
For the year to the end of June 2018, CTL achieved revenues of £4.7m and profit before tax of £1.1m. On a post-acquisition pro-forma basis, the business would have generated an estimated profit before tax in excess of £1.4m during the period.
AFH has spent £16m acquiring 16 businesses in the last year and said it “remains well positioned to take advantage of consolidation opportunities in the IFA market”.
AFH’s turnover in the half year to 30 March 2018 was £22.7m, up more than 60% on the same period the year before.
Since 2014 AFH has been listed on the London Stock Exchange’s AIM.
Its current market capitalisation is £160m.
