AFH FINA RNS Number : 7949M AFH Financial Group Plc 25 January 2016
The Directors of AFH (the "Directors"), a leading financial planning led investment management firm, today announces the Group's consolidated audited results for the period ending 31 October 2015 reflecting the continued growth of the Group and resulting in a 50% increased dividend.
Progressive dividend policy sees 50% increase of full year dividend to 2.25p per share
EBITDA up 115% due to controlled and profitable growth
Revenue up 40% to £21.0m, exceeding market expectations
EPS up 80% to 5.95 pence per share
Successful completion of 11 acquisitions with a strong pipeline for the period ahead
Well positioned to meet increasing demand and regulatory change
Commenting, John Wheatley, Chairman of AFH, and Alan Hudson, Chief Executive of AFH, said:
"Given the progress made in 2015 and the early months of the 2016 financial year, the Directors view the coming period as providing excellent prospects and look forward to extending AFH's brand, reach and reputation."
Enquiries: AFH Financial Group PLC | 01527 577 |
775 Alan Hudson, Chief Executive Officer Paul Wright, Chief Financial Officer www.afhfinancialgroup.com | |
Allenby Capital Limited 5656 Nick Naylor/Nick Athanas (Nominated Adviser and Broker) Chris Crawford (Corporate Broking) | 020 3328 |
Dominic Barretto Aidan Stanley
I am pleased to report a successful 2015, following a strong performance during the second half of
the year to 31 October 2015. The Company has enjoyed significant increases in both revenue and profitability and continues to provide high quality services to a growing portfolio of clients nationwide.
Our success continues to be built on our belief that a financial planning led approach to the management of our clients' wealth, based on the highly personal face to face relationship between them and our advisers, is key to ensuring that client's interests remain at the centre of our operations. This strategy allows us to identify and plan for our clients' long-term requirements and ambitions before any investment decisions are made. We work with them to structure a portfolio appropriate for their attitude and tolerance to risk. This is then invested, regularly monitored and managed in line with their agreed goals and requirements. Our clients receive a proactive and transparent service all year round, where relationships are built on mutual respect.
At a time when people are living longer and being encouraged by the Government to take greater responsibility for their financial wellbeing, and with current legislation allowing for additional flexibility and choice, the Company believes that long-term demand for personal independent financial advice will continue to grow. With over 150 qualified advisers, AFH is well positioned to meet this increasing need and to benefit from these demographic and regulatory changes.
During the year under review, the Company enjoyed strong revenue growth. This was driven by a significant rise in recurring fee income, which increased our average annualised gross revenue per adviser to £143,000. Total revenue for the full year grew by 40% to £21.0m with H2 revenue, boosted by acquisitions made during the year. This exceeded expectations set out in the interim report of May 2015, where I indicated that new business revenues had been restrained during H1. This was in part due to our clients deferring pension advice and investment. I am pleased to report that, following the UK General Election in May, the level of new business has increased significantly.
During the year, AFH increased its national footprint by completing 11 acquisitions at an average capped consideration of slightly above £1m. Five of these acquisitions were asset purchases, where the client databases and ongoing revenue streams were acquired. The remaining six were acquired by purchasing 100% of the equity shares with a significant proportion of the consideration payable on a deferred basis. Our acquisitions during the period were financed from our continuing positive trading cash flow and from the equity and unsecured loan stock raised by the Company during 2014 and in January and May 2015.
In line with our strategy of controlled and profitable growth, the Company continued to invest in strengthening its management team, with a number of senior appointments. In October 2015 it was announced that Alexis James and Austin Broad, our Heads of Risk and Advice respectively, had joined the main Board. We also invested heavily in our physical and technological infrastructure to support the additional growth planned for 2016 and future years. In September 2015, we increased our office space at AFH House in Bromsgrove by 50%, and during the second half upgraded both our internal IT capacity and our ability to respond to the increasing technology risks currently affecting all businesses.
AFH Financial Group plc issued this content on 2016-01-25 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-25 09:08:05 UTC
Original Document: http://www.afhfinancialgroup.com/announcements/25012016 Final Results.pdf
