CompaniesDec 24 2015

AFH raises £6.37m for new year spending spree

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AFH raises £6.37m for new year spending spree

AFH has raised slightly less money through a placing of new shares than it anticipated, according to an announcement from the London Stock Exchange.

The company said it had raised £6.37m through the placing of new shares to help fund more acquisitions - though it had sought to raise up to £6.5m.

The Aim-listed firm said the money raised will also contribute towards the working capital requirements of the enlarged company.

Alan Hudson, chief executive of AFH, said: “We look forward to 2016 with optimism, following another strong year of performance across the company.”

He added that 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.

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 Limited in August.

The firm’s latest trading update, covering the 12 months to 31 October, revealed that it had cash balances of more than £3m with revenues for the second half of the year expected to exceed £20m.