News

20
Mar

AFH issues £10m in shares to boost acquisition growth

AFH Wealth Management has confirmed that they will release £10m of new shares, as of 20th March, in order to raise funds for key acquisitions.After previously reporting AFH having acquired 5 firms since October, most recently Bay Wealth Management, AFH wishes to purchase more financial advice firms. You can read further about AFH’s recent acquisitions here: http://bit.ly/2ncmFMA.
After previously reporting AFH having acquired 5 firms since October, most recently Bay Wealth Management, AFH wishes to purchase more financial advice firms. You can read further about AFH’s recent acquisitions here: http://bit.ly/2ncmFMA.
The shares will individually be valued at £1.75. If demand for the Wealth Management firm’s shares exceeds supply, Alan Hudson, Chief Executive of AFH, has agreed to sell up to one million of his own shares to further growth opportunities.
Earlier today, AFH stated, “The board believes that the opportunity exists to acquire appropriately priced businesses and that the net proceeds of the placing will provide the company with a strong platform to finance such acquisition opportunities as well as providing funds for general corporate purposes.”
“The near-term pipeline is particularly attractive, with four potential deals currently at various stages of the due diligence and engagement process”
“In addition to these four potential deals, the company continues to assess other potential acquisitions to further accelerate its growth.”
It is evident that AFH is aiming to accelerate growth more so than last year, with the firm only making two acquisitions in 2016. They included East Anglian firm, CRS Financial Planning as well as Lancashire-based David Rushton Associates.
Mr. Hudson reasoned the slower growth in the passing year with a ‘focus on “Shareholder value”.
As stated prior, the firm has made 5 acquisitions since October, the start of AFH’s accounting year. In recent reports, the firm posted profits of £1.7m for 2016, an increase of 43 percent since last year, revealing it had set aside £6.7m for acquisitions on the horizon.
If you would like to know more about AFH then feel free to contact Louise at 0117 9926335 or email Louise.jeffreys@gunnerandco.com.