ConsolidatorNov 15 2017

Consolidator seeks £15m to swoop on advice firms

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Consolidator seeks £15m to swoop on advice firms

Advice firm consolidator AFH is hoping to raise £15m from the placing of new shares to fund acquisitions

In the past 12 months the company has bought 13 advice firms, plus the protection business of Eunisure.

This has left it with £8m of cash, which it has said is enough to meet the liabilities associated with these acquisitions but it will need to increase its war chest to make more acquisitions.

It will achieve this buy placing £15m of new shares prices at £2.50 each.

In a statement to the London Stock Exchange this morning (15 November) the company said: "The board intends to continue to execute its strategy of making selective acquisitions and increasing AFH's national footprint, whilst providing a professional and cost effective service to its clients.

"The board believes that the company remains well positioned to take advantage of consolidation opportunities in the IFA market and currently has a strong pipeline of potential acquisitions that are under negotiation.

"The company is undertaking the placing to provide it with a strong platform to finance such acquisition opportunities as well as providing funds for general corporate purposes."

AFH's latest deal was the purchase of Essex-based Britton Financial Limited for a maximum purchase price of £2.08m.

damian.fantato@ft.com