AFH Financial Group Plc Acquisition of assets of David Rushden Associates (1355R)

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RNS Number : 1355R

AFH Financial Group Plc

07 December 2016

7 December 2016

AFH FINANCIAL GROUP PLC

("AFH" or the "Company")

Acquisition of the assets of David Rushden Associates Limited

AFH, a leading financial planning led wealth management firm, is pleased to announce the acquisition of the assets of David Rushden Associates Limited ("David Rushden"), a Lancashire based IFA. Following the acquisition David Rushden, the vendor, will join AFH.

Under the terms of the acquisition, the maximum consideration payable by AFH is GBP298,125, representing approximately 1.8% of the Funds under Management ("FUM"). An initial cash consideration of GBP157,500 has been paid upon completion, satisfied from the Company's existing cash resources. Further deferred consideration of up to GBP140,625 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired from David Rushden.

The acquisition is AFH's first corporate transaction of the current financial year, consistent with its stated strategy of making carefully selected acquisitions which will be value enhancing, and follows comments in our pre close trading update on 14 November. David Rushden will add approximately GBP16.5m to AFH's funds under management.

Commenting, Alan Hudson, Chief Executive of AFH, said:

"This acquisition will strengthen our position in the North West and I look forward to working with David to continue the development of AFH in the region."

"The acquisition of the assets of David Rushden follows the strategy restated in our recent trading update of making selective acquisitions to develop our expansion nationally and leverage our central investment and support functions."

"The Company continues to seek high quality businesses of all sizes that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders."

Enquiries:

 
 AFH Financial Group PLC 
  Alan Hudson, Chief Executive 
  Officer 
  Paul Wright, Chief Financial 
  Officer 
  www.afhfinancialgroup.com       01527 577 775 
 
 Liberum (Nominated Adviser 
  and Broker) 
  John Fishley / Richard 
  Bootle                          020 3100 2000 
 
 Camarco 
  Geoffrey Pelham-Lane / 
  Jennifer Renwick                0203 757 4985 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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December 07, 2016 02:00 ET (07:00 GMT)