AFH expands with seventh acquisition since flotation
WORCESTERSHIRE wealth management firm AFH has acquired a financial advisory group in Nottingham in a deal which could ultimately be worth almost £700,000.
The acquisition of the Arden Court Group is the seventh bolt-on made by Bromsgrove-based AFH since its flotation last June.
The firm, which last month announced net assets of £11.3m and cash reserves of £1.7m with no bank debt, said the acquisition would boost turnover and increase client and adviser numbers.
Arden, established in 1994, provides IFA services to high net worth individuals and SMEs throughout the UK and Europe. It currently has approximately 2,500 clients whose total assets amount to around £100m. In its financial year ended May 31, 2011, Arden made a gross profit of £418,000 on revenues of £1.01m.
Following the acquisition, nine of Arden’s advisers will be integrated into AFH’s Bromsgrove headquarters, taking AFH’s total number of advisers to 80, up from 53 at the time of its IPO last June.
Nat Parmar, the current managing director of Arden, will join AFH as regional director (North).
The initial consideration is £362,000, which has been funded by £337,000 in cash from AFH’s existing resources and a £25,000 shares issue.
A deferred cash consideration, up to a maximum of £337,000, may also be payable depending on Arden’s performance in the two years following acquisition.
AFH said its results for the year ended October 31, 2011 showed it continued to perform strongly, despite ongoing economic uncertainties.
“The directors of AFH believe that the acquisition will further enhance AFH’s operational strength and that the group remains well placed to prosper in the years ahead,” said the firm in a statement today.
