Afh Financial Share Discussion Threads

[dexdringle] 02/4/2020 08:35

They won't be cutting the income of the advisers as they are mostly self employed. It will only be the 'employed' (admin) support staff to whom the request to accept a pay reduction will be aimed...

[davydoo] 01/4/2020 22:50

I'm telling you, because this is my world, advisers will remember this, especially the good ones who could walk in anywhere else. They may wait for the right time, but they will leave.

This business can buy all the retiring firms it wants, but if it cant incentivise the next generation of advisers to stay, especially as they aren't accumulating the equity their predecessors were before AFH came along with a cheque book, they will leave

[dexdringle] 01/4/2020 19:51

If funds under management are £6bn and they have fallen by 15% then that's around £900 million reduction. If AFH get on average 0.5% trail (1% split 50/50 with the advisers) then that would be around £4.5 million reduced income per annum (around £1.1 million over next 3 months). Plus forecast reduction in new business commissions. The salary bill is probably around £20m - so asking the staff to take a 10% pay cut for 3 months will save around £660k.

This is a company which prides itself on the proportion of income that is 'recurring'. The implication being that the business can operate on that if necessary in bad periods. Obviously not. Very disappointing...

[dexdringle] 01/4/2020 16:57

Bizarre behaviour. Asking the staff to take a voluntary 10% payout is fantastically dramatic (in a bad way). It is hardly likely to make a material difference. Smacks of desperation...

[topriser] 01/4/2020 09:45

idiotsinthedarkRIZandLINTARD is IMPOTENT

hahahahahahahahah

[davydoo] 31/3/2020 16:15

mercenary? for wanting to still be paid their wages? lol

Also, If Mr Hudson is going to describe the financial strength of the organisation wouldnt he be better to outline the firm's assets, rather than those of his clients?

[davydoo] 31/3/2020 16:14

'where will they go'

Such care for the people who are generating the profits you desire.

Other firms aren't all in the same position. We have 4 advisers and we're about to recruit 2 more. Probably from firms that dont look after their staff when it really matters

[rivaldo] 31/3/2020 16:06

Everyone in the sector (in fact most sectors!) are in the same boat - it's hardly the first sign of trouble! It's all very well saying they'll be off, but where will they go? Other firms will be in the same postion - and will likely be less successful than AFHP.

Especially considering its excellent track record, including as regards integration of acquisitions in general.

And it's already been established that AFHP are a much safer option than others in the sector, given the higher proportion of AFHP's revenues arising from initial advice fees and Protection Broking, which are unrelated to market movements.

[davydoo] 31/3/2020 15:48

i'd be off in a shot. A financial adviser's greatest value to clients comes at these times, it's no time to pay them less.

AFH have already said they've struggled when acquiring businesses with non equity owning advisers. With no payout to hang around for, why stay with AFH? even more so now if its your pay that gets cut at the first sign of trouble.

[rivaldo] 31/3/2020 15:41

As you say, good news for shareholders! Better than losing your job, and when the virus panic is over then I'd assume salaries will return to normal.

[davydoo] 31/3/2020 13:38

they've asked all staff to take a pay cut. good news for shareholders until staff leave because they dont feel valued, especially when recurring income is strong

[rivaldo] 31/3/2020 13:35

Moving up seemingly on every buy today.

[rivaldo] 26/3/2020 12:08

Financial services specialists Charlton Illingworth have analysed the entire sector to come up with a table showing the best value/cheapest to most expensive stocks based on historic P/E versus CAPE.

AFHP are the cheapest stock of all the 51 stocks measured.....



"With no clue what earnings might be this year I checked my watchlist for historic PE vs the year average PE inflation adjusted. The list is below."

[quepassa] 20/3/2020 11:28

Indeed. Fully concur....


Amidst the corona crisis, chaos and mayhem, AFHP's words and statement at the recent 6/3 AGM are perhaps neither be forgotten, nor underestimated :-

"Following a period of consolidation and whilst continuing to focus on cash generation and the organic growth of the business, the Group remains open to executing further acquisitions should suitable opportunities present themselves, with a focus on smaller IFAs and larger businesses where the majority of advisers are employed or equity participants in the target company."


"AND LARGER BUSINESSES"


the current market sell-off may present certain compelling opportunities to AFHP sooner rather than later.


and AFHP continue:-


"The success of 2019 has continued into the first four months of this financial year with revenues and fund inflows recorded at Q4 2019 levels. We expect the growing requirement for professional financial planning to accelerate in the future and for the consolidation within the sector to continue as commercial factors and regulatory requirements encourage a smaller number of larger businesses to dominate the sector."

" A SMALLER NUMBER OF LARGER BUSINESSES TO DOMINATE THE SECTOR".

It is quite clear which category ambitious AFHP want to be in.




Bottom-fishing yesterday has already yielded some spectacular returns amidst the market chaos hitherto driven by fear and shorters.



ALL IMO. DYOR.
QP

[tole] 20/3/2020 11:16

Timing.. my thoughts exactly regards recovery. Tucked away for long term.

[tole] 20/3/2020 11:15

Picked up a small amount to tuck away here

[rivaldo] 20/3/2020 11:14

There should be a dramatic recovery here once the markets stabilise.

[dexdringle] 19/3/2020 15:57

That is unbelievable isn't it. Makes me realise that the dramatic falls in the share prices of many companies are random and ridiculous. I should be happy that I can buy AFH for £2 a share - but I'm already fully invested in it (and others) so don't have the cash. My only option is to sell something else that has fallen 50% (eg RDSB that I bought for £19 a share 1 month ago - yikes) to buy AFH in the hope that they will recover more quickly. Essentially gambling on which will recover more quickly....

[quepassa] 19/3/2020 15:08

AFH @ 200p.

Thank You, Mr. Market!

ALL IMO. DYOR.
QP

[rivaldo] 11/3/2020 11:03

Liberum have reiterated their 569p target price. And they state that AFHP are the least affected by falls in equity markets of any of the stocks in their asset-linked coverage.

This is because of the higher proportion of revenues in AFHP arising from initial advice fees and Protection Broking, which are unrelated to market movements.

They note that a 10% fall in equities would only results in a 5% fall in AFHP's EPS. So at present the impact to AFHP should be only a maximum 10% - and that's only if the fall remains in place for a full year.

This year's EPS 33p EPS forecast to 31st October should therefore fall only to 31p EPS or so - if the current decline continues for the rest of the period.

The forecast for the year starting this November remains at 37.1p EPS.

And AFHP are still trading at a huge discount to other listed financial advisers - they trade at an average P/E of 17.2 compared to AFHP's 9.9 (and wealth managers trade on a P/E of 12.6).

[tomv33] 09/3/2020 10:14

This may be a tree shake as well as everything else

[johndoe23] 09/3/2020 08:44

Could be right...