21st Jul 2014 11:15
LONDON (Alliance News) - AFH Financial Group PLC, the independent financial advisory and discretionary wealth manager, Monday reported a 54% increase in first-half pretax profit, as it reported its maiden set of financial results since moving to AIM from ISDX.
In a statement, AFH said that it made a GBP537,000 pretax profit in the six months ended April 30, compared with GBP349,000 in the corresponding period a year earlier. Revenue increased to GBP7.3 million, from GBP4.8 million, and recurring revenue rose 4% to 54% of the overall figure. Gross margins saw a slight improvement to 51%, from 50%.
Administrative expenses increased to GBP3.1 million, from GBP2.1 million, said the group, due to a GBP183,000 increase in amortisation and depreciation costs of non-current assets acquired in the first-half and prior to it. During the period, AFH acquired the client portfolios of three small IFA businesses and the entire share capital of a fourth at a combined cost, subject to two-year earn out periods, of GBP1.3 million.
"Our outlook for this year is to continue with our steady growth through organic development and appropriate acquisitions to deliver further profitability," Chief Executive Alan Hudson said in a statement, adding that the company is actively seeking "appropriately priced acquisition opportunities with a comparable culture."
AFH shares were Monday untraded at 150.5 pence.
By Samuel Agini; [email protected]; @samuelagini
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