AFH Financial Group Plc Acquires Britton Financial Limited
The Board of AFH, a leading financial planning led wealth management firm, is pleased to announce the completion on 10 November 2017 of the acquisition of Britton Financial Limited ("Britton") based in Colchester, Essex. Following the acquisition Ken Kerr will retire and the clients of Britton will be serviced by existing AFH advisers.
Under the terms of the acquisition, the maximum purchase price is £2,081,000 based on the ongoing recurring revenue of the business subject to the fulfilment of certain financial targets. For the financial year ended 31 May 2017 Britton achieved reported profit before tax of £352,551. The Company estimates that, on a pro forma basis, following the integration of clients to existing AFH advisers, this would have generated a profit before tax of £500,000.
The initial consideration for the acquisition is £1.1m in cash, funded from the Company's existing cash resources. Further deferred consideration will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the business acquired.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"This first purchase of an IFA business during the current financial year demonstrates the continued high level of activity that we are seeing in the market. The latest acquisition enhances our position in the South East of England and continues our strategy of providing a stable and well capitalised business within which the clients of retiring IFAs can continue to receive appropriate professional advice and investment management."