25th Jan 2016 10:03
LONDON (Alliance News) - AFH Financial Group PLC on Monday reported a jump in pretax profit in its last financial year, saying strong trading has continued since the second half and it is ready to add to the series of acquisitions it has made amid consolidation of the independent financial advisory sector in the UK.
The wealth manager, which provides financial planning advice to affluent clients in the UK, said pretax profit rose to GBP1.6 million in the year ended October 31, almost double the GBP861,000 recorded in the prior year. Revenue increased by 40% to GBP21.0 million and administrative expenses by 35% to GBP9.2 million.
AFH lifted its dividend for the year by 50% to 2.25 pence per share.
Adviser numbers increased to 158 as at the end of the financial year from 136 the same stage the prior year, including both advisers joining from acquisitions and those recruited individually, net of retiring independent financial advisers. The group completed 11 acquisitions during the financial year to extend its coverage across the country, while investing in support functions run from its Bromsgrove offices near Birmingham.
"The current year has started in line with trading levels from the second half of 2015. Recurring revenues continue in line with the directors' expectations, and the group's acquisition pipeline remains strong. The recently enhanced group cash reserves, which have risen to over GBP8.0 million, will allow the board to take further advantage of the active M&A market in the IFA sector and deliver on its strategic aims in 2016 and future periods," AFH Chief Executive Alan Hudson said in a statement.
"The board believes that it has developed the necessary infrastructure to support its growth plans for 2016 and beyond. The company will actively continue to seek appropriately priced opportunities during 2016 to generate additional revenue and drive increased profitability," Chairman John Wheatley said.
Shares in AFH were up 3.0% at 171.50 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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