Ambitious AFH turns its sights on London

ACQUISITIVE financial advisory firm AFH has indicated it will be returning a healthy set of figures with funds under management now exceeding £900m.

And it revealed its future plans include looking for potential takeover targets in London and the South East.

The Bromsgrove business, which yesterday revealed it was taking over a Cornish rival in a £1.2m deal, said in a market update that it expects the results for the 12 months ended October 31 to be in line with market expectations. It said its cash balances are in excess of £5m and it is well positioned to take advantage of IFA market consolidation.

AFH has completed seven acquisitions financed by positive trading cash-flow over the past 12 months.

Six of these acquisitions were asset purchases.

AFH said that while it continues to consolidate its traditional strength in the West Midlands, 2014 marked its expansion into Scotland and East Anglia and further growth in the South West, reflecting its stated expansion strategy.

The firm, which listed on AIM earlier this year, said it anticipates further expansion of the company’s national presence during 2015 to include acquisitions in London and the South East.

AFH revealed it has noted an increase in the size and rate of IFA companies becoming available for purchase, and expects this trend to continue throughout 2015. As a consequence, it is considering additional financing options and may use fixed interest instruments, alongside its equity base, to introduce a modest level of gearing into the company’s balance sheet in the current financial year to take advantage of this developing trend.
 
Alan Hudson, chief executive of AFH, said: “The company’s results for 2014 will represent another important milestone in AFH’s journey to become one of the UK’s leading IFAs.

“The board continues to execute its strategy of making selective acquisitions and increasing the breadth of AFH’s national footprint.”