2nd Feb 2015 09:33
LONDON (Alliance News) - AFH Financial Group PLC Monday said it has acquired Roxborough Consultancy Ltd and the assets of First Class Financial Management Ltd in a move that will add a further GBP55 million to its funds under management.
The maximum that AFH will pay for Roxborough, based in Didcot, Oxfordshire, is GBP911,760 in cash, with GBP476,760 to be paid on completion of the deal, followed by up to GBP435,000 over the next 26 months in two tranches depending on performance.
"The principal of Roxborough will retire following completion and existing AFH advisers will take over their client relationships," AFH said.
AFH said it will pay from its existing cash resources.
For the year ended March 31, 2014, Roxborough generated a pretax profit of GBP185,793 and net assets of GBP370,749 at the end of that time period.
The group will pay up to GBP84,000 for the assets of First Class Financial Management, based in West Bromwich.
Chief Executive Alan Hudson said the group is continuing to look for acquisitions following big regulatory changes to investment advice in the UK, known as the Retail Distribution Review, designed to raise professional standards and to make the cost of advice more transparent. Hudson also discussed how AFH will target new acquisitions of independent financial adviser businesses.
"We offer IFA businesses, of all sizes irrespective of geography, the opportunity to either become part of a larger group or to allow the principals of those businesses the ability to realise value as they retire. We intend to focus our acquisition strategy on retiring IFAs over the coming months as part of our overall growth strategy," Hudson said.
In December, AFH placed GBP1.9 million in four-year unsecured loan notes to fund acquisitions.
AFH shares were untraded on Monday. The stock closed at 150.50 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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