AFH Group to increase dividends by 50% after a strong year

WORCESTERSHIRE IFA AFH Group is presenting its shareholders with a 50% increase in dividend following a strong year for the business.

The Bromsgrove-based group said the continued growth of the company during the past financial year had enabled it to make such a return.

The group’s results for the year to October 31, 2015, show revenues increasing by 40% to £21.0m (2014: £15.0m) and EBITDA rising 115% from £1.3m to £2.8m.

Excluding the £240,000 non-recurring cost of operating IFS UK Ltd, which was acquired in April last year as a separate business during its integration and which was anticipated and reported at the time of the acquisition, EBITDA rose to £3.05m. Post tax earnings attributable to shareholders showed a similarly healthy increase from £0.6m to £1.2m.

Earnings per share increased to 5.95p (2014: 3.31p).

The year saw the firm expand its national footprint with the completion of 11 successful acquisitions at an average capped consideration of slightly above £1m. Five of these acquisitions were asset purchases, where the client databases and ongoing revenue streams were acquired. The remaining six were acquired by purchasing 100% of the equity shares with a significant proportion of the consideration payable on a deferred basis.

The deals were financed from the group’s continuing positive trading cash flow and from the equity and unsecured loan stock raised by the company during 2014 and in January and May 2015.

Jointly commenting on the performance, John Wheatley, chairman of AFH, and Alan Hudson, the group’s chief executive, said: “Given the progress made in 2015 and the early months of the 2016 financial year, the directors view the coming period as providing excellent prospects and look forward to extending AFH’s brand, reach and reputation.”