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Wealth consolidator seeks £10m to accelerate buy strategy

Wealth consolidator seeks £10m to accelerate buy strategy

AFH Financial has placed £10 million worth of shares to help fund a number of buy opportunities it has identified.

The shares have been put on the market at 175p each, with chief executive Alan Hudson (pictured) agreeing to sell 1 million of his shares as part of the placing worth £1.75 million.

In a stock exchange announcement AFH, said the proceeds of the placing would be used to ‘execute the company’s acquisition pipeline and for general corporate purposes’

It added: ‘The board believes that the opportunity exists to acquire appropriately priced businesses and that the net proceeds of the placing will provide the company with a strong platform to finance such acquisition opportunities as well as providing funds for general corporate purposes. 

‘The near-term pipeline is particularly attractive, with four potential deals currently at various stages of the due diligence and engagement process. In addition to these four potential deals, the company continues to assess other potential acquisitions to further accelerate its growth.’

Since 31 October AFH has made five acquisitions for a combined £2 million. 

Earlier this year it said it had a strong pipeline of bid opportunities, after receiving a record number of approaches last year after launching an informative website explaining the acquisition process to potential vendors.

In a brief trading update accompanying news of the placement, AFH said its core business continued to perform in line with expectations, with strong recurring revenue and further additions to funds under management.

As at 1 March, AFH had a cash balance of £4.1 million. 

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