AFH Financial Group Plc ACQUISITION OF PREMIER WEALTH MANAGEMENT HARROGATE (1139G)

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RNS Number : 1139G

AFH Financial Group Plc

02 November 2018

2 November 2018

AFH FINANCIAL GROUP PLC

("AFH" or the "Company")

ACQUISITION OF Premier Wealth Management Harrogate Limited

The Board of AFH, a leading financial planning led wealth management firm, is pleased to announce the completion of the acquisition of Premier Wealth Management Harrogate Limited ("Premier"), a directly authorised firm based in York. As a result of the transaction, Richard Evans together with Andrew Huby and their support staff will join AFH, bringing over GBP90m of FUM to further extend the operations of AFH in the North East.

Under the terms of the acquisition, the maximum purchase price is GBP4.5m dependent upon performance criteria of the business acquired. The initial consideration for the acquisition is GBP2.0m in cash, funded from the Company's existing cash resources. Further deferred consideration will be payable in cash over the next 26 months, subject to enhanced performance criteria of the business being achieved. For the twelve month period ended 31 December 2017, the business reported revenues of GBP0.7m and profit before tax of GBP0.35m. Since that time the business has demonstrated significant growth in both revenues and profitability. On a pro-forma basis the business has a current revenue run rate of GBP1.2m, generating operating profits of GBP0.9m.

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

"The acquisition of Premier is the first transaction of our new financial year and, following the acquisition of Thomas Heald in August, continues the expansion of AFH in the North East. Premier has demonstrated high levels of profitable growth and I am pleased to welcome Richard and his team to AFH. I look forward to working with them for the benefit of our new clients and to increase shareholder value."

Enquiries:

AFH Financial Group PLC 01527 577 775

Alan Hudson, Chief Executive Officer

Paul Wright, Chief Financial Officer

www.afhfinancialgroup.com

Liberum (Nominated Adviser and Broker) 020 3100 2000

John Fishley/Richard Bootle /Euan Brown

This announcement is released by AFH Financial Group plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Paul Wright, Chief Financial Officer.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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November 02, 2018 03:00 ET (07:00 GMT)