AFH posted profits of £1.7m for 2016, increased by 43 per cent on the previous year, and has revealed the size of the pot of cash to buy more businesses.
The consolidator, which has had a quiet year with relatively few acquisitions, said it had a “strong pipeline” of opportunities.
This was supported by cash reserves of £6.7m set aside for acquisitions.
Alan Hudson, chief executive of AFH, said: “This year has seen the early realisation of the benefits of scale and the infrastructure investment made in previous periods.
“Continued investment in technology, enabling a digitalised approach to our clients in the future, is expected to accelerate the benefits of scale and the infrastructure investment made in previous periods.
“In a year in which the group completed two acquisitions, the significant growth and improving margins are testament to the strategy set out by the board in 2014 to place financial planning through face to face advice at the forefront of our proposition, supported by a strong infrastructure and professional investment management team.”
Revenues at AFH were up 15 per cent to £24.1m in 2016, with recurring revenue making up 68 per cent of this.
Funds under management grew 11 per cent, reaching £2bn.
During 2016 the only two acquisitions AFH made were East Anglian firm CRS Financial Planning and Lancashire-based David Rushton Associates.
This month the company bought another two businesses in deals worth just over £1m.
Mr Hudson said the lack of activity was due to his desire to focus on “shareholder value”.
damian.fantato@ft.com
