13th Sep 2019 08:38
(Alliance News) - Shares in AFH Financial Group PLC surged Friday after it acquired two new financial adviser firms for a combined GBP7.2 million, as well as reporting "strong" organic inflows.
Shares in AFH were 6.6% higher at 294.33 pence in London on Friday.
AFH bought Twickenham-based Mulberry Independent Financial Advisers Ltd for a maximum GBP5.3 million, of which GBP2.3 million will be paid initially and the remainder dependent on performance.
Hemel Hempstead-based AE Garment Independent Financial Services Ltd was acquired for up to GBP1.9 million, of which GBP1.0 million is an initial payment and the remainder performance related.
"The announcement of these latest acquisitions follows our recently completed GBP15 million placing in July 2019," AFH Chief Executive Officer Alan Hudson said. "Notably, the acquisitions have been completed on attractive, value-enhancing multiples, in line with our business model and those negotiated in previous transactions."
"We continue to undertake due diligence on the pipeline of acquisition opportunities that were referenced in the placing announcement and look forward to updating the market in due course," Hudson added.
With the addition of GBP170 million in funds under management from Mulberry and GBP45 million from AE Garment, total FUM at AFH has risen above GBP5.6 billion.
"The company continues to enjoy strong organic inflows of funds from existing and new clients with low redemptions," Hudson added. "During the current year double-digit gross inflows continue to be achieved whilst outflows, including pension drawdowns, remain below 2%."
Related Shares:
AFHP.L