AFH Financial Group Plc ACQUISITION OF THE ASSETS OF MERITOR LIMITED (6437O)

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RNS Number : 6437O

AFH Financial Group Plc

21 May 2018

21 May 2018

AFH FINANCIAL GROUP PLC

("AFH" or the "Company")

ACQUISITION OF THE ASSETS OF MERITOR LIMITED

The Board of AFH, a leading financial planning led wealth management firm, is pleased to announce the completion of the acquisition of the client portfolios of Meritor, the financial advisory business of Freeths LLP, a national legal practice.

Under the terms of the acquisition, the maximum purchase price is GBP0.53m dependent upon performance criteria of the assets acquired. The transaction is expected to add approximately GBP330,000 of annual recurring revenue.

The initial consideration for the acquisition is GBP330,000 in cash, funded from the Company's existing cash resources. Further deferred consideration will be payable in cash over the next 14 months, subject to performance criteria of the assets acquired being achieved.

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

"This latest acquisition will continue the expansion of our national distribution in our core mass affluent and high net worth client base. The acquisition of the assets of Meritor provides a pathway to work with Freeths in the future to provide their clients with access to the AFH advice and asset management model and gain advantage from the scale that AFH provides.

We are aware of a number of similar businesses linked to legal and audit practices that are deemed non-core to those organisations. We believe that the mutual benefits of this transaction will demonstrate the commercial advantages to similar organisations and their clients in the future"

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

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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May 21, 2018 02:00 ET (06:00 GMT)