ANNOUNCEMENT: UK Adviser is now PA Adviser. Read more.

Financial planning firm to end acquisition hiatus

It also expects a ‘strong pipeline of employed advisers’ to join the company in 2021

|

AFH Financial was once known for its mass acquisition strategy, however in the last year it focused more on “organic growth”.

But, during its 2020 financial year results, the firm said it is still looking for M&A deals despite pausing its acquisition activity in September 2019 and June 2020.

Alan Hudson, group chief executive of AFH, said in a London Stock Exchange statement: “While in 2020, the company withdrew from the acquisition market in order to consolidate its previous growth, and to strengthen its balance sheet through the reduction of outstanding debt and contingent consideration, our strategy of combining organic growth through greater productivity of our advisers together with value accretive acquisitions financed on an earn-out model remains unchanged.”

The firm’s last acquisition came in August 2020 when it bought the client book of insolvent Welsh advice firm Juno Moneta Capital for an undisclosed sum.

Growth

AFH does not want to be fully reliant on M&A deals to create growth and the firm expects a big recruitment drive in 2021.

Hudson added: “In the coming months, we expect our strong pipeline of employed advisers to join the firm, providing us with a significant boost to AFH’s advisory capacity and geographical reach at a time when we see the demand for professional financial planning growing significantly.”

The comments came during the firm’s 2020 financial results ending 31 October 2020.

Revenues were up 4% to £77.1m ($104.4m, €86.5m), from £74.3m in 2019, while earnings before tax rose 5% to £18.1m (2019: £17.2m)

The firm’s funds under management were stable at £6.2bn.

Latest Stories