Listed IFA AFH Financial has seen its funds under management pass £1.25bn following nine acquisitions since the firm listed on Aim, and funds under management are set to grow due to a “strong pipeline” of prospective IFA acquistions.
At the firm’s annual general meeting this morning (23 April), AFH chairman John Wheatley will give an update on the firm’s current position. He is expected to say the directors remain confident they are well positioned to take advantage of market opportunities as they arise.
“As reported in the audited results released on 16 March 2015, I am pleased to say that the company’s core business has traded in line with trading levels experienced during the second half of 2014.
“The board is also pleased to report that recurring revenue continues to remain strong and, during the current year, has contributed an increased percentage of total revenue and that gross margins remain above the 50 per cent level.
As reported at the end of March, recurring revenue remains strong and, during the current year, has contributed an increased percentage of total revenue and that gross margins remain above the 50 per cent level.
Since the end of last October, AFH has completed seven acquisitions of IFA businesses spread throughout England, with a combined maximum consideration of £5.3m. The most recent of which, for Nottingham-based IFA Clarendon Financial Solutions, added approximately £25m in funds under management.
AFH’s model of deferring approximately half of any consideration over a two-year period, based on the performance of the acquired business, has been as applied in each case.
In addition, the company made deferred payments, based on trading performance, of £1.1m in respect of acquisitions completed in previous periods.
In December, the firm issued an unsecured 7.5 per cent four-year bond and in February it was confirmed that £2.14m had been raised from this issue. Mr Wheatley noted that these funds will be used for general corporate purposes, in particular to help finance initial cash payments on target acquisitions during 2015.
peter.walker@ft.com
