1st May 2015 08:26
LONDON (Alliance News) - AFH Financial Group PLC Friday said it has bought another independent financial advisory business, its biggest acquisition to date.
The company said it has acquired Independent Financial Services (UK) Ltd, which is based in Stroud, Gloucestershire, for up to GBP4.1 million.
The acquisition is AFH's tenth since in listed on AIM in June 2014 and will take the group's funds under management to about GBP1.7 billion from the GBP1.25 billion reported earlier in April.
Chief Executive Alan Hudson said the purchase of Independent Financial Services is the company's first acquisition of a national firm.
"Independent Financial Services represents a significant paper-based transaction with protection for existing investors against excessive dilution and provides excellent geographical synergy to the company's current advisers," Hudson said in a statement.
Independent Financial Services generated GBP3.1 million of revenue in the year ended February 28, AFH said, adding that GBP2.6 million of that amount was recurring. The acquisition's pretax profit was GBP230,000 and it had net assets of GBP240,000.
AFH expects to take a further GBP500,000 in restructuring and integration costs in its current financial year.
It will pay for Independent Financial Services in cash and shares.
It is paying GBP450,000 in cash up-front and could pay a further amount of up to GBP3.65 million split equally in cash and shares depending on performance targets over a 30-month earn out.
AFH shares were up 0.5% at 149.70 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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