AFH continues expansion with three new acquisitions
WORCESTERSHIRE wealth management firm AFH has expanded with the acquisition of three Midlands-based IFA businesses in deals worth a total of £371,500.
The acquisitions are in line with the growth strategy set out by Bromsgrove-based AFH on its flotation on PLUS earlier this year.
The firm said it wanted to take advantage of the opportunities arising from the fragmented Independent Financial Advisory market and the additional burdens imposed on certain IFA’s by the Retail Distribution Review, which comes into effect from December 2012.
The acquisitions will provide additional opportunities for AFH to sell advice-related services to new clients. The deals also see staff numbers at the firm rise by 36% to more than 100 since the beginning of the year.
The three businesses, which have not been named, bring more than 1,300 new clients to the company.
In a statement, AFH said: “The principal attraction for AFH lies in the opportunity to provide advice and investment services to the new clients and the incremental increase in AFH’s recurring revenues.”
Further acquisitions may arise in the future and AFH said it was investigating a number of opportunities.
Since flotation, which took place in June 2011, AFH has increased the number of its IFA’s by 17% and the company expects to have more in place by the end of this year.
Alan Hudson, chairman and CEO of AFH, said the acquisitions reaffirmed the company’s stated intentions for growth.
“It’s been an incredibly active period since our June IPO, which has seen growth in all aspects of the company. The acquisition of these three IFA businesses will result in a significant increase in recurring revenue, IFA’s and additional advice related services,” he said.
“The company has a healthy balance sheet and continues to carry no debt. (It) remains well placed to grow and, in line with the strategy set out at the time of our listing, we continue to seek to further our position through both organic and acquisitive growth. The company expects to update the market on progress in this respect in due course.”
