Consolidator AFH has reported an increase in profits over the first six months of this year, on the back of a raft of advice firm acquisitions.

AFH, led by chief executive Alan Hudson (pictured), has published business performance figures for the six months to April 2017.

Revenues have increased 19% to £13.9 million (2016: £11.7 million), of which recurring revenue as a increased to 70% (2016: 66%).

Pre-tax profits have risen 34% to £1.15 million (2016: £860,000).

Funds under management are now above £2.2 billion, up 17% (2016: £1.88 billion)

Revenue from acquisitions reported during the current year totalled £500,000 and represented 4% of total revenue for the period.

Adviser numbers grew to 154 during while annualised revenue per adviser increased to £180,000 (2016: £156,000).

During the period AFH completed six acquisitions with a combined capped value of £4.5 million.

AFH paid an initial consideration of £2 million was paid with the balance to be earned during the next two years. The company also paid £1.5 million in deferred considerations relating to previous acquisitions undertaken in 2014 - 2016.

AFH raised £10 million gross via an institutional fundraising creating The 5.7 million new ordinary shares. AFH sad the fundraising has given it the ‘financial strength’ to complete a number of potential acquisitions during the second half of the current financial year, the first of which was announced to the market on 1 June. AFH bought  Canary Wharf-based Parker Sage Independent Financial Advisers in a deal worth up to £5.6 million.

AFH said it wishes to increase the average size of the advice firms it acquires though differentiated between this aim with deals that allow the adviser to retire ‘where our existing advisers can offer the full AFH service to the acquired client base’.

AFH also acquired another business later week, Eunisre, which is a protection business. AFH bought the protection advice network in a deal worth up to £4.5 million. 

It said: ‘The recent acquisition of Eunisure significantly increases our national footprint whilst addressing the segment of financial protection that has been widely reported as underserved by the market in recent years.’