Confident outlook from PLUS newcomer AFH
WORCESTERSHIRE wealth management firm AFH has said it remains confident of a strong 2012 with growth being delivered during the second half by its newly-acquired portfolio of businesses.
The Bromsgrove firm, listed in June and voted PLUS-SX Newcomer of the Year 2012, today released its first set of results, covering the 131-day period following its flotation on PLUS-SX on June 23, 2011 to October 31, 2011.
The results reveal a strong balance sheet with net assets of £11.3m and cash reserves of £1.7m with no bank debt. The firm said it had secured EBITDA of £227,387 (before exceptional items, share option costs and flotation costs), while adviser numbers up 32% from 53 at flotation to 70 today.
It said there had been a strong performance from AFH Independent Financial Services – which trades as AFH Wealth Management and generates over 90% of the group’s revenue, with gross revenue up 12% on an annualised basis to £5.4m for the 12 months ended October 31, 2011. Recurring income was at 49% of revenue, with EBITDA of £827,000, up 15% on an annualised basis.
Alan Hudson, chairman and chief executive of AFH Financial Group, said: “I am delighted to be able to report a strong performance by the group in such a challenging financial climate.
“At flotation, we set out our strategy of driving growth both organically and by way of acquisition. The 32% increase in adviser numbers and the six acquisitions completed since June 2011 are strong evidence that we are successfully implementing this strategy.
“The group’s management team has been strengthened considerably to accommodate the further rapid expansion we envisage for AFH.”
He said he expected the group’s robust performance to continue, with the integration of the new advisers and the acquired businesses making a real impact in the second half of the financial year.
“AFH is cash generative and profitable, with a strong balance sheet. The board believes that the group is therefore well placed to prosper in the years ahead,” he added.
