Advice consolidation giant AFH plans to raise another £15 million in a fresh share placing to fuel a fresh ‘pipeline; of advice acquisitions.
The AIM-listed business which describes itself as a ‘financial planning led investment management firm’ has announced a placing of new ordinary shares ate price of 370 pence per share.
In a market statement AFH, led by chief executive Alan Hudson (pictured), said the net proceeds of the placing would be used to ‘execute the company’s acquisition pipeline.’
AFH has acquired 16 firms over the past year, spending £16 million of ‘initial consideration’. AFH’s deals are typically split between an upfront payment and payments contingent on meeting performance targets.
It said: ‘The board intends to continue to execute its strategy of making selective acquisitions and increasing AFH's national footprint, while providing a professional and cost effective service to its clients.’
AFH said it remains ‘remains well positioned to take advantage of consolidation opportunities in the IFA market and currently has a strong pipeline of potential acquisitions that are under negotiation and in due diligence’.
AFH’s 16th acquisition was announced at the start of this month, buying Maidstone-based advice firm Core Financial Services. The deal will add £230 million of assets to AFH.
The maximum price of the deal could be £7.7 million. The initial amount paid will be £3.2 million, with further payments dependent on ‘enhanced performance criteria of the business being achieved’ over the next 26 months.
In September AFH bought the client assets of collapsed broker and discretionary fund manager Beaufort Securities' Welsh office in a deal worth up £250,000.