Record interims for Bromsgrove IFA AFH Financial

WORCESTERSHIRE IFA and wealth management firm AFH has announced record interim results with like-for-like revenues up 55%.

The Bromsgrove-based business, which has grown through a series of nationwide acquisitions, said revenue for the six months to April 30,2013 was £4,793, 072 (2012: £3,098,183). Recurring income increased by 58% and EBITA was up 56% to £409,574 (2012: 262,248).

Alan Hudson, chairman and CEO of AFH, said: “Our first half performance has been strong and highly encouraging, especially when one takes into consideration the operational disruption caused by the Retail Distribution Review.

“The directors expect to report to shareholders an even stronger second half performance as new advisers and acquisitions start to fully contribute to the bottom line.”

He said that since joining the market, the firm had successfully integrated 14 acquisitions, moved to larger offices and continued to build its infrastructure, so the company was scalable, profitable and cash generative. 

“As a result, AFH sits in a very strong position in a sector undergoing fundamental change. I would like to thank the team and, of course, all our shareholders for their continued effort and support,” he said.

Hudson said the business would continue to look for growth opportunities and the on-going rationalisation and consolidation in the IFA sector would accelerate as many  businesses came  to  realise they were sub-scale and needed to merge or sell.

“AFH continues to look for select and like-minded financial advisers and vendors of IFA practices whose culture fits with our own. However, it is not our intention to buy and build at any cost without due regard,” he said.

“What is most important to us is that we continue to place our clients, old and new at the centre of our business. Whilst there is significant multiple arbitrage that makes the sector attractive to private equity, we believe there are very few quality, debt free financial planning led acquirers in the market and we intend to capitalise on this.”

He said the launch of AFH’s legal arm in June this year gave the company a further competitive advantage over similar businesses wishing to attract high quality financial planners.

“The directors believe that Wills, Trusts and Estate planning forms the corner stone of professional financial planning for clients.  The addition of an in-house legal services division, regulated by the Solicitors Regulatory Authority, should prove to be of tremendous added value for AFH’s advisers and clients alike,” he said.

 

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