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AFH profits increase amid buying spree

AFH profits increase amid buying spree

AFH has seen its profits before tax increase by more than a third, reaching £1.15m for the six months ending in April.

Profits increased by 34 per cent on the first half of 2016 while revenues were up by 19 per cent to £13.9m.

Funds under management went up by 17 per cent, reaching £2.2bn.

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Alan Hudson, the company’s chief executive, said AFH has a “strong pipeline” for acquisitions.

He said: “Whilst AFH has a strategy of continuing to increase the average size of our acquisitions, the company also remains committed to providing an exit for retiring IFAs where our existing advisers can offer the full AFH service to the acquired client base.

“As a result the board expects to announce both strategic and tactical acquisitions in the future.”

Over the six month period AFH made six acquisitions with a combined capped value of £4.5m.

A total initial consideration of £2m was paid out while another £1.5m was paid in deferred considerations for acquisitions agreed between 2014 and 2016.

In April AFH raised £10m through a placing of 5.7m new shares which has allowed it to go ahead with a number of acquisitions in the second half of the year.

The first of these was Parker Sage Independent Financial Advisers, which was completed last Thursday (1 June).

The very next day the consolidator announced it had also purchased protection network Eunisure Limited for £4.5m.

The fund raising also allowed the company to increase its cash reserves from £7.1m to £12.6m.

damian.fantato@ft.com