AFH enlarges its portfolio with double acquisition

WORCESTERSHIRE IFA AFH Financial has further enlarged its portfolio with a double acquisition.

The Bromsgrove group has acquired the assets of Northampton-based Hindsight Financial Services Ltd in a deal more £281,250. It is the company’s third acquisition since moving its listing to AIM in June 2014 and the 11th since the implementation of RDR.

AFH said the acquisition would immediately add £15m of funds under management, bringing the company’s total funds under management to £840m and total adviser headcount to 136.
 
Under the terms of the acquisition, the maximum consideration payable by AFH is £281,250, satisfied by an initial cash payment upon completion of £140,625, followed by a further cash consideration of up to £140,625, payable over the next 26 months in two tranches and dependent upon performance over the next two years.
Hindsight’s director, Trevor Dimmock, will join AFH as an adviser and continue to service his clients.

Further to the acquisition of Hindsight, AFH has also taken on the client bank of Jeff Seward & Partners, based in Cardiff, for up to £45,000. AFH said the deal supported its strategy of buying sole traders who wished to retire and exit the industry. The Seward clients will now be serviced by existing AFH advisers.
 
Commenting on the deals, Alan Hudson, chief executive of AFH, said: “Today’s transaction sees further geographical expansion of the AFH brand and continues to underpin the board’s strategy of growing the business both organically and through select and opportune acquisitions.
 
“In a period of less than three months since moving from ISDX, the company is beginning to see the benefits of its AIM listing. The board remains focused on building a significant footprint within the UK and continuing to grow shareholder value.”