The wealth management and financial advisory business AFH Financial Group has announced increased revenues at the half-way stage.
Revenues were up 42% to £11.7 million (£8.22 million) for the six months ended 30 April 2016 and EBITDA was up 43% to £1.43 million (£1.0 million). Gross margin was maintained at 55%. Recurring revenue as a percentage of total revenue was also maintained at 66%. Profit before tax was up 42% to £0.86 million (£0.6 million) and earnings per share was up 35% to 2.9 pence (2.15 pence). Funds under Management were £1.88 billion, up 44% (£1.3 billion).
The firm highlighted a proven integration platform with over 90% of deferred consideration for those acquisitions reaching a deferred consideration milestone was earned and paid during the period.
It also said it had a confident outlook, emphasizing a strong balance sheet to support further acquisitions; cash reserves of £7.1 million (£4.3 million); regulatory dynamics to support further industry consolidation; a disciplined acquisition methodology; and, a strong pipeline of acquisition opportunities.
Group Chief Executive Alan Hudson said: “Our strong first half results demonstrate AFH’s continued successful momentum. Strong organic growth, complemented by contributions from our acquisitions, drove increased earnings per share by almost a third, compared with the same period last year. Within this, the rise in both recurring fees and revenue per adviser was particularly encouraging as we continue to realise and develop the benefits of a strongly integrated business model under the AFH brand.
“Based on the continued client demand for our financial planning led wealth management services, the opportunities following UK pension reform and our proven track record as a successful acquirer and integrator of businesses, we are confident of the Group’s future prospects for the full year and beyond.”