AFH’s £17.25m acquisition fund

AFH’s accounts, released to the stock market on January 20th, revealed that it has a cash pot of £17.25 to be used to fund acquisitions. Following AFH’s acquisition spree in 2019, including the purchase of Broadleaf Financial Services through Gunner & Co. it appears that the wealth manager could be pursuing a similar strategy in 2020. 

AFH has funds under administration of over £6bn, and saw an increase in profit of eighty per cent for the year to the end of October 2019.

Alan Hudson, company chief executive, said: “The group’s strategy to increase shareholder value through the expansion of the AFH community remains at the heart of our growth.

“This strategy continues to be driven by a combination of organic growth through greater productivity of our advisers and by value accretive acquisitions financed on an earn out model.

“This approach has enabled the group to enjoy annual double-digit organic inflows of funds under management and to maintain our low level of outflows in spite of the market pressures; to maintain our high levels of recurring revenue since we joined AIM in 2014 and to maintain gross margins and generate operating efficiencies to drive growth in earnings per share.”