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AFH buys Warwickshire IFA

AFH buys Warwickshire IFA

AFH Financial Group has bought a Warwickshire-based IFA for more than £600,000 in the eighth acquisition completed by the wealth manager in this financial year. 

AFH has bought Groom Associates for an initial cash payment of £321,000, with the remainder payable over a 26-month period, dependent on performance, to a maximum purchase price of £615,000. 

The directors of Groom Associates, Bill Groom and Annabelle Duncan, are set to retire following the acquisition and their clients will be advised by existing AFH advisers. 

In September the wealth manager said it would be pausing its recent acquisition spree but would still seek to complete deals currently undergoing due diligence in its pipeline. 

This was after in May AFH reiterated its commitment to providing an exit for retiring IFAs in the market, when it also announced a 68 per cent jump in funds under management for the group. 

Alan Hudson, chief executive of AFH, said: "Our eighth acquisition of the financial year is the client portfolio of an established IFA business in Studley. I wish Bill and Annabelle well in their retirement.

"The business provides a complimentary fit to AFH's core business and I am confident that Groom's existing clients will benefit from the advantages of the AFH proposition."

In its recent business update AFH announced it did not anticipate seeking any additional funding from the equity market for deals in the "foreseeable future" and instead would focus on "organic revenue growth" in light of the current economic and political climate.

The wealth manager followed a similar strategy in 2016 when the company moved to de-risk its business model by focusing on a period of integration for acquisitions it had made in the previous 12 months and prioritising organic growth.

At the time AFH pointed to an "uncertain political and economic" climate as cause for the pause in new deals and in September's statement said its board believed many of the economic and political factors that existed in 2016 were again present to "influence investor behaviour for the foreseeable future".

AFH is expected to publish a full trading update to the market in early November.

rachel.mortimer@ft.com 

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