AFH proposes maiden dividend after strong year
WORCESTERSHIRE IFA AFH has announced its maiden dividend after a strong first full year of trading as a plc.
The Bromsgrove-based group has announced gross revenues of £7.2m, with a pre-tax profit of £0.34m for the year ended 31 October 2012.
Alan Hudson, chairman and chief executive of AFH Financial Group, said: “The board views the prospects for the remainder of 2013 and beyond with confidence. Our strategy is to continue driving forward in our traditional areas of strength whilst further enhancing our offerings to drive increased profitability. The board continues to monitor the external market place for appropriately priced acquisition opportunities which will generate incremental opportunities for the group. Our long term aim is to grow adviser numbers and build an outstanding IFA firm.
“The strong performance over the last 12 months is another important step in this direction and our proposed maiden dividend underlines our confidence in the group’s future.”
Gross revenue increased by 34% and the firm generated EBITDA of £1.2m (before non-recurring costs), up 45% on the previous year. Group EBITDA was £0.8m before costs of share options and a non-recurring charge associated with the relocation of the business to larger offices.
Recurring income represents 50% of group revenue and the group said it had a strong balance sheet with net assets of £12.4m and no borrowings. It has proposed a maiden dividend of 1p per ordinary share.
Operational highlights for the firm included a 60% increase in adviser numbers to a total of 94 at the year end. The growth was based on a series of acquisitions completed during the year, with a further three completed since the year-end.
It said its new 14,000 sq ft offices had provided it with the capacity for further growth.
