Strong half year for financial services firm following acquisition spree
Bromsgrove financial services group AFH has seen revenues rise 61% in the first half of 2019 as it continues to reap the rewards of its aggressive acquisition strategy.
For the six months to the end of April, revenues rose to £36.6m from £22.7m in the prior year period, while underlying EBITDA up 74% to £7.7m.
Profit after tax was up 80% to £4.5m as the company saw funds under management rise 68% to £5.4bn.
Alan Hudson, group chief executive, said: “I am pleased to report another set of strong results for the first half of 2019 demonstrating our progress as we continue to build ourselves into the leading financial planning-led wealth manager in the UK. Despite turbulence in the equity markets and subdued investor confidence over the period, we have delivered increased revenues, reporting 61% growth from the previous period to £36.6m and improved trading margins demonstrated by our underlying EBITDA* margin increasing to 21%.
“Our growth continues to be generated organically from new and existing clients together with the benefits of the four acquisitions made in the first half of FY 2019 as well as those acquisitions made towards the end of 2018. Our protection business, which is not aligned to the stock markets, continued the strong growth reported in 2018.
“Following the company’s success in meeting its strategic and financial aspirations set out in January 2017, the board set new aspirational targets in January 2019 to be achieved within a three to five-year period.
“The overarching strategy of the company continues to be to generate long term value for shareholders by driving revenue growth and margin expansion while providing exceptional value and service to our clients, using our increasing size to drive down platform and fund management charges aligned to an appropriate risk-based investment model.
“On the basis of our results and the opportunities identified, we look forward to continuing to deliver continued profitable growth in the second half of 2019 and beyond.”
