AFH boosts funds to facilitate acquisitions

The chairman and chief executive of the firm, which is listed on the London-based Icap Securities and Derivatives Exchange, said AFH had raised £2.8m from an equity and bond issue to provide additional working capital and to finance the further acquisition of adviser firms.

Since its flotation in June 2011 AFH has acquired 14 advisory firms in the UK and its number of advisers has increased from 53 to 120.

According to the firm’s interim results for the six months to 30 April, AFH is debt free and delivered a 55 per cent increase in revenues compared to the corresponding period in 2012, up £793,072.

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Earnings before interest payments, tax, depreciation, and amortisation grew by 56 per cent to £409,574, net assets grew from £11.5m to £12.6m in the same period, while cash at the bank stood at £150,000.

Mr Hudson said: “This fund-raising is a strong endorsement of the company’s organic and acquisitive business strategy, executed against the background of a tight credit market.

“We are pleased to have received this strong level of support from the investment community and look forward to moving ahead with our strategy to become a leader within our field. AFH is well funded, debt free, dividend paying and perfectly positioned.”

Adviser view

Ashley Clark, founder of Staffordshire-based, said: “As with any business, it comes down to the quality of the firms AFH will be acquiring but from an economy of scale position, gaining this funding for additional acquisitions makes common sense. From my point of view any acquisitions would need synergy with the original firm as well.”