AFH Financial Group Plc Acquisition (7784G)
June 01 2017 - 2:00AM
UK Regulatory
TIDMAFHP TIDMAFHB
RNS Number : 7784G
AFH Financial Group Plc
01 June 2017
1 June 2017
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITION OF PARKER SAGE INDEPENDENT FINANCIAL ADVISERS
LIMITED
The Board of AFH, a leading financial planning led wealth
management firm, is pleased to announce the acquisition of the
entire issued share capital of Parker Sage Independent Financial
Advisers Limited ("Parker Sage"), an IFA providing independent
financial advice in Canary Wharf, London and the northern home
counties, which was completed on 31 May 2017 (the "Acquisition").
As a result of the Acquisition, Jon Cliston, Andrew Smith, Tony
Goody have joined the AFH Group.
Under the terms of the Acquisition, the purchase price is
GBP4.5m which may be increased to a maximum consideration payable
by AFH of GBP5.6 million, based on a targeted increase in the
profitability of Parker Sage over the next 24 months.
The initial consideration for the Acquisition is to comprise
GBP1.875m in cash, funded from the Company's existing cash
resources, and GBP375,000 of ordinary shares in AFH based on the
average midmarket share price of AFH ordinary shares over the last
five trading days. The ordinary shares to be issued pursuant to the
Acquisition are expected to be admitted to trading on 7 June
2017.
Further deferred consideration of up to GBP3.35m in cash will be
payable over the next 24 months in two tranches, dependent upon the
performance of Parker Sage Advisers over the period being
satisfied.
For the 12 month period ended 31 August 2016 Parker Sage
generated revenue of GBP2.2m of which GBP1.5m was recurring, and
reported profit before tax of GBP1.2m. On the basis of trading
since September 2016 the Company estimates that ongoing revenues
could exceed GBP3m per annum in the 12 month period to September
2017.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"The acquisition of Parker Sage is our seventh IFA acquisition
this year and will be integrated in line with our established model
to enhance shareholder value during the current financial year.
Parker Sage's directors are very successful advisers who share both
our values and vision for the future of the sector. I look forward
to working with them in many years to come."
Enquiries:
AFH Financial Group PLC
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
www.afhfinancialgroup.com 01527 577 775
Liberum (Nominated Adviser and
Broker)
John Fishley/Richard Bootle 020 3100 2000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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