For the year ending in October 2017, the financial advice consolidator AFH acquired 14 firms with a combined value of over £18m. Following this string of successful acquisitions, AFH has announced that their post-tax profits increased by over 80 per cent for the same period, from £1.7m to more than £3m. At the same time, revenues increased by 40 per cent.
The chief executive of AFH, Alan Hudson, commented on AFH’s recent success:
“The year under review produced our fourth consecutive year of growth and improved profitability since joining Aim in 2014.
“New business and continued demand for financial advice from existing clients, together with a series of earnings accretive acquisitions during the year, enabled the group to grow its funds under management to £2.8bn and increase revenues to £33.6m whilst the efficiencies and economies of scale that we have worked towards generated a further improvement to our Ebitda margin and continues our progress to our three to five year aspirational target.”
AFH are determined not to plateau. More potential acquisitions are in the pipeline for 2018: the chairman John Wheatley revealed that the firm is looking for “appropriately-priced opportunities” to spend their £20m in cash assets on. Meanwhile, Mr Hudson stated that AFH has set three specific targets to markedly increase revenue, funds under management and Ebitda margins over a three to five year period.
For more information about AFH’s proposition for business vendors contact louise.jeffreys@gunnerandco.com
