Wealth management firm continues acquisition drive with £3.5m deal

AFH chief executive Alan Hudson

Bromsgrove-based wealth management firm AFH has completed its fourth acquisition of its financial year, a £3.5m deal which brings with it more than £100m of funds under management.

The listed group has acquired Hayburn Rock Group and its subsidiary companies, based in Stourbridge.

As a result of the acquisition Stephen Perks together with nine advisers will join AFH.

Under the terms of the acquisition, the maximum purchase price is £3.5m dependent upon performance criteria of the business acquired.

The initial consideration for the acquisition is £900,000 in cash, funded from the company’s existing cash resources. Further deferred consideration will be payable in cash over the next 29 months, subject to enhanced performance criteria based on post completion profitability.

For the 12 months to the end of December 2017, the business reported revenues of £2.1m and profit before tax of £400,000.

Alan Hudson, chief executive of AFH, said: “The acquisition of Hayburn is our fourth transaction this financial year and further consolidates AFH as a leading financial planning led wealth management firm in the West Midlands and indeed the UK. Hayburn is a local business to AFH which should enable an efficient integration process. I am pleased to welcome Stephen and his team to AFH and look forward to working with them to provide their existing clients with the benefits of the full range of AFH services and to increase shareholder value.”

In 2018, AFH spent £16m acquiring 16 businesses 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.

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