AFH has issued a trading update, telling the City that its full year results are set to be above 2015 levels.
The AIM-quoted financial planning led wealth management firm said that it expects the results for the twelve months ended 31 October 2016 to show continued growth. The improvement is being driven by higher average levels of revenue generated by its advisers with a year-on-year increase in turnover expected to be over 15%. Funds under Management exceeded £2bn at the year end.
The firm listed its highlights for the year:
- strong organic growth with revenues for the full year expected to exceed £24m (2015: £21.0m);
- cash balances at 31 October 2016 of £6.7m;
- prior year acquisitions successfully integrated and deferred earn outs continue to exceed 90% of maximum price;
- well positioned to continue to take advantage of ongoing IFA market consolidation;
- strong pipeline of potential acquisitions under negotiation;
- Board remains confident of future prospects.
Chief Executive of AFH Alan Hudson said: “I am encouraged by the strong progress we are continuing to see. AFH continues to be active in the market to acquire good quality IFAs but remains focused on ensuring shareholder value. The success and robustness of this policy is reflected in the high level of acquisitions meeting or approaching earn out targets and the strong cash flow generated by the business to finance these earn out liabilities.
“AFH has continued to attract new funds throughout the year and I am pleased to report double digit organic growth in our Funds under Management.
“The Board will continue to execute its strategy of making selective acquisitions and increasing the breadth of AFH’s national footprint whilst providing a professional and cost effective service to our clients, and believes that AFH remains well positioned to take advantage of opportunities as they arise.
“I am pleased to note the continued increase in our recurring revenue and our gross margin, and we look forward to updating the market further in January 2016, at the time of our results. We would like to thank our shareholders and staff, without whom we would not be reporting this level of profitable expansion.”
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