AFH to raise £20m to fund acquisitions

AFH to raise £20m to fund acquisitions

National advice company AFH will raise up to £20m through the issue of convertible loan stock to fund more acquisitions.

The company said it had a strong pipeline of potential acquisitions, with five deals currently at various stages of the due diligence process.

Alan Hudson, AFH's chief executive, said: “On the basis of our results and the opportunities identified, we look forward to continuing to deliver continued profitable growth in the second half of 2019 and beyond.

"The overarching strategy of the company continues to be to generate long term value for shareholders by driving revenue growth and margin expansion while providing exceptional value and service to our clients, using our increasing size to drive down platform and fund management charges aligned to an appropriate risk-based investment model.”

In the six months to 30 April 2016 the company reported a 61 per cent increase in revenue to £36.6m, with assets of £10bn. 

AFH said the cost of financing using convertible loans was comparable with other sources of finance to which it has access. The loan notes will be issued in denominations of £5,000. 

The stock being issued has an annual interest rate of 4 per cent. Convertible loan notes can be converted into shares in the company within the next five years, under certain conditions.

The proposal must be passed by shareholders at the company’s next annual general meeting later this month.