UK wealth manager AFH has reported an 87% rise in profit before tax to almost £6m ($7.6m, €6.8m) for the six-month period ending 30 April 2019.
This was a jump from £3.2m in H1 2018.
Revenues were up 61% to £36.6m compared to £22.7m in 2018, while funds under management increased to £5.4bn, up 68% from £3.2bn last year.
Alan Hudson, group chief executive at AFH, said in the firm’s results: “I am pleased to report another set of strong results for the first half of 2019 demonstrating our progress as we continue to build ourselves into the leading financial planning-led wealth manager in the UK.
“Despite turbulence in the equity markets and subdued investor confidence over the period, we have delivered increased revenues, reporting 61% growth from the previous period to £36.6m.
“On the basis of our results and the opportunities identified, we look forward to continuing to deliver continued profitable growth in the second half of 2019 and beyond.”
Acquisitions
The firm has become a key player in the M&A merry-go-round and shows no sign of stopping.
AFH’s last purchase was in January, when it bought financial planner Hayburn Rock Group and its subsidiary companies.
During the firm’s 2018 financial year, AFH completed 16 acquisitions with a combined purchase price of £34m.
“The market for acquisitions within the IFA sector continued to be buoyant and whilst some upward pressure on prices was seen in larger businesses, where competition from private equity and product providers has increased, we were able to close transactions at our traditional multiples and in line with our earn out model,” Hudson added.
“Our pipeline remains strong with a number of opportunities in due diligence and contract negotiations at the period end.
“While AFH has seen an increase to the average size of its acquisitions, the company also remains committed to providing an exit for retiring IFAs where our existing advisers can offer the full AFH service to the acquired client base.
“As a result, the board expects to announce both strategic and tactical acquisitions in the future.”
