AFH continues to trade at second half levels

SHAREHOLDERS in Worcestershire wealth management group, AFH Financial, have been told that the business is continuing to trade to the strong levels seen during the second half of last year.

In his address to the Bromsgrove company’s AGM, chairman John Wheatley said: “I am pleased to confirm that the company’s core business continues to perform in line with trading levels experienced during the second half of 2015.

“The board is also pleased to report that, in spite of the recent stock market turbulence, recurring revenue continues to remain strong as a result of the inflow of new funds during the period and the relatively conservative investment approach taken for our clients. As in 2015, gross margins remain above the 50% level.”
 
In December last year, the company completed a fundraising of £6.37m through a placing and subscription at a price of 165p per share. The net proceeds of the fundraising, estimated to be £6.16m, are to be used to fund new acquisitions and boost working capital.

During the first quarter of the current financial year, the company made deferred payments, based on trading performance, of £1.6m in respect of acquisitions completed in previous periods. This represented an average of 94% of the maximum consideration payable across those acquisitions.
 
“I am pleased that both the company’s balance sheet, and pipeline of prospective acquisitions, remains strong and further selective acquisitions are anticipated during the current financial year,” he added.

As of March 1, the company had cash balances of £8m – of which £1.7m represented capital requirements for its authorised businesses.

“The directors remain confident that the group is well positioned to take advantage of market opportunities as they arise,” said Mr Wheatley.