Companies  

Listed IFA in second 2014 acquisition worth up to £117k

Acquisitive listed IFA AFH Financial Group has acquired the assets of Norwich-based Omega Consulting for a maximum consideration of £117,000.

The adviser firm has approximated £14m of funds under management and recurring income of £39,000 per annum, having made two acquisitions this year and now a total of eight since the January 2013 implementation of the Retail Distribution Review.

The director and Owner of Omega has taken the decision to leave the industry and therefore Omega’s clients will be serviced by existing AFH advisers after the transaction completes, the firm said.

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The consideration for the acquisition comprises an initial cash payment of £28,500 and a further consideration up to a maximum of £88,500 payable over a 26-month period following the acquisition, based on performance.

Alan Hudson, AFH chief executive, said: “We welcome the existing clients of Omega and look forward to bringing them on board at a pivotal time for the company as we progress our move to [Alternative Investment Market]. “

The company is set to list on Aim in the second quarter of this year. Last month, the group announced it had raised £1.6m to fund further acquisitions, adding to a £3.3m fundraising it completed in two stages through the second half of 2013.

Its latest financial results revealed AFH’s profit before tax rose 250 per cent to £1.05m for the year ending 31 October 2013, up from £300,000 the year before, its final year results state.

Revenue was up 50 per cent to £10.8m, from £7.2m the previous year, with just over half of that representing recurring revenue.