Wealth management firm reports ‘year of consolidation’
Bromsgrove-based wealth management firm AFH Financial Group has seen profits level out during 2020 after a rise of 82% last year.
Revenues rose by 4% to £77.1m, but profits dropped back slightly – from £10.8m in 2019, to £10.7m last year after what bosses are calling “a year of consolidation”.
AFH said this morning (January 18) that it believes demand for financial planning-led wealth management services will continue and towards the end of the reporting period saw a gradual increase in net inflows of client funds.
Alan Hudson, group chief executive, said: “I am pleased to report on another year of progress at AFH towards our goal of becoming the UK’s leading advice-led wealth management company. Despite the disruption caused by COVID-19 and the impact that it has had on our clients, advisers and staff, the company achieved both revenue and EBITDA growth whilst maintaining our EBITDA margin.
“In the coming months we expect our strong pipeline of employed advisers to join the firm, providing us with a significant boost to AFH’s advisory capacity and geographical reach at a time when we see the demand for professional financial planning growing significantly.
“As reported, even prior to the pandemic’s impact on global markets, 2020 was to be a year of consolidation for AFH and we are extremely pleased to have finished the period with a strengthened balance sheet, significantly reduced outstanding contingent considerations and strong cash balances.
“Trading remains in line with the Board’s expectations and the resilience shown throughout 2020 and in the first months of the new financial year leaves us confident for the year ahead.”
