AFH looks to double revenues

AFH looks to double revenues

AFH Financial Group remains confident it will almost double annual revenues over the next five years as the wealth manager looks to another year of acquisitions.

The company completed 16 acquisitions last year, announcing today (March 1) it had delivered more than 90 per cent of deferred payments based on its new firms' performance in the first four months of this financial year.

John Wheatley, chairman of AFH, said hitting these targets required "profitable growth" from each of the acquired businesses.

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Mr Wheatley said he expects consolidation in the investment and wealth management market to continue through 2019, as the group seeks to "drive increased profitability" and "enhance shareholder value".

In January AFH announced a set of three to five year aspirational targets, hoping to achieve funds under management of £10bn, revenues per annum of £140m and an underlying EBITDA margin of 25 per cent on revenue.

The company’s revenue target is almost double that of 2017 when it was £75m.

Mr Wheatley said: "The achievement of these aspirations will further cement our position as one of the leading financial planning led investment management companies in the UK." 

AFH’s funds under management currently sit at more than £5bn, with its acquisition of financial advice business CTL Three in December last year, its biggest to date, adding £530m.

Mr Wheatley said: "Looking to the current financial year, trading remains in line with expectations.

"We have continued the momentum of 2018 into the first four months of our new financial year with four acquisitions already completed, further expanding AFH's national footprint with over 250 IFAs now working across the UK."

He added: "We continued to implement operational efficiencies and improve the customer experience for our clients by investment in technology and infrastructure and reducing investment costs by leveraging the increased scale of AFH."

AFH listed on the Aim segment of the London Stock Exchange in 2014.