AFH has raised £6.37m through the placing of new shares to help fund more acquisitions.
In an announcement to the London Stock Exchange, the AIM-listed advice firm said the money raised will also contribute towards the working capital requirements of the enlarged company.
Alan Hudson, chief executive of AFH, welcomed its new shareholders – including the River and Mercantile UK Micro Cap Investment Company and Octopus Investments – on board, and thanked its existing shareholders for their “continued support”.
He added: “We look forward to this year with optimism, following another strong year of performance across the company.”
Mr Hudson said the Worcestershire-based company has a portfolio of acquisition opportunities that the board is keen to take advantage of during 2016.
The share placing saw 2,727,273 new ordinary shares made available and a subscription of up to 1,212,121 new ordinary shares at a price of £1.65 for each share.
Background
AFH has increased its national footprint by completing 11 acquisitions over the last year at an average capped consideration of about £1m.
Most recently it paid £2.8m for Devon-based advisory firm Davisons Financial Management in August.
In its latest trading update, covering the 12 months to 31 October 2015, the company said it had cash balances of more than £3m, with revenues for the second half of the year expected to exceed £20m.
