Last week the company announced two deals to buy Financial Planning firms worth over £10m combined in the space of 24 hours.
Announcing its results today for the six months ended 30 April 2017, it spoke of a “strong balance sheet to support further acquisitions” and a “strong pipeline of acquisition opportunities”.
Win a gift voucher by helping with our Financial Planning researchhttps://t.co/yxWIHMRbjG via @FPTodayNews pic.twitter.com/Al2lbhMS7F
— FP Today Magazine (@FPTodayMagazine) June 5, 2017
The firm reported having cash reserves of £12.6 million, following on from a successful £10 million placing (30 April 2016: £7.1 million).
Its report said that the “regulatory dynamics continue to support further industry consolidation”, sating AFH has a “proven acquisition methodology”.
The headline figures on financial performance it gave the Stock Market included:
· Revenues up 19% to £13.9 million (H1 2016: £11.7 million)
· Gross margin increased to 56% (H1 2016: 55%)
· Recurring revenue as a percentage of total revenue increased to 70% (H1 2016: 66%, FY2016 68%)
· Underlying EBITDA* up 35% to £2.03 million (H1 2015: £1.50 million)
· Underlying EBITDA* margin increased to 14.6% from 12.8%
· Profit before tax up 34% to £1.15 million (H1 2016: £0.86 million)
· Underlying Earnings per share* up 27% to 6.17 pence (H1 2016: 4.84 pence)
· Funds under Management above £2.2bn, up 17% (H1 2016: £1.88bn)
*Underlying excludes amortisation of intangible assets arising on business combinations and the non-cash charge/credit for share based payment costs.
Alan Hudson, group chief executive, said: "I am pleased to report another six month trading period of increased turnover and trading margins based on organic growth from new and existing clients leading to a 27% increase in underlying Earnings per Share.
“The strategy of the company continues to be to generate long term value for shareholders by providing exceptional value and service to our clients and using our increasing size to drive down platform and third party administration costs aligned to an appropriate risk based investment model."