ConsolidatorApr 10 2018

AFH makes fourth deal of 2018

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AFH makes fourth deal of 2018

Advice consolidator AFH has bought a Hertfordshire-based firm, part of a flurry of acquisitions which is seeing it average one purchase a month in 2018.

The deal to buy Mark Hughes & Associates will see AFH spend up to £1.6m, depending on the ongoing profitability of the business.

Alan Hudson, chief executive of AFH, said: "I am pleased to report our sixth acquisition of the financial year which further strengthens our presence in the Home Counties.

"I am pleased to welcome Mark and his team to AFH and look forward to working with him to continue our growth in this region for the benefit of our new clients and to increase shareholder value."

The acquisition, the fourth of the year for AFH, is expected to contribute approximately £600,000 a year of revenue to the company while adding more than £50m to its funds under management.

Yesterday the Worcestershire-based company bought Lifetime Investment and Seminar Services, an advice firm based in south Yorkshire.

The initial consideration for the acquisition is £700,000 in cash, funded from AFH's cash resources. More will be payable in cash over the next 26 months in two tranches, subject to performance criteria.

Mark Hughes & Associates has around 300 clients across London and the Home Counties.

Mr Hughes, who worked at Lloyds Bank before starting his own firm, said: "I wanted to make sure my clients got the benefits of the latest developments in the industry, but keeping abreast of the changes takes time, and I didn’t want to spend less time with my clients as a result.

"The solution was to join forces with AFH, so I’m free to devote all my efforts to delivering the best outcomes for my clients, supported by the in-house expertise and administration team that AFH provides."

damian.fantato@ft.com