AFH has bought the assets of an East Anglian IFA firm in a deal worth £663,670.
The deal to buy the assets of CRS Financial Planning was completed on Friday (30 September) and Chris Stapleton, the vendor, will now be retiring.
Alan Hudson, chief executive of AFH, said: “The acquisition of the assets of CRS follows the strategy, established by the company when we listed on Aim in June 2014, of making selective acquisitions to develop our expansion nationally and leverage our central investment and support functions.
“The company continues to seek high quality businesses that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.”
The acquisition is AFH’s first transaction of the current financial year and will add about £25m to its funds under management.
Under the terms of the deal, the maximum consideration payable by AFH is £663,670, representing about 2.6 per cent of the funds under management.
An initial cash consideration of £378,920 was paid on completion while a further consideration of up to £284,750 will be payable in cash over the next 26 months, dependent upon performance criteria of the assets acquired from CRS.
In June AFH reported profits before tax up 42 per cent for the six months ending in April.
In 2015 the Worcestershire-based company made 11 acquisitions and at the end of last year it raised £6.37m through a placing of new shares on the London Stock Exchange.
But since then the CRS deal has been the only one it has announced, with Mr Hudson saying AFH will not “be drawn into buying the wrong companies”.
Earlier this year AFH tried to buy Lighthouse Group but the bid was rejected by the latter company’s board.