AFH Financial Group Plc Acquisition of Bay Financial Management Limited (3704X)

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RNS Number : 3704X

AFH Financial Group Plc

21 February 2017

21 February 2017

AFH FINANCIAL GROUP PLC

("AFH" or the "Company")

ACQUISITION OF BAY FINANCIAL MANAGEMENT LIMITED AND SUBSIDIARIES

The Board of AFH, a leading financial planning led wealth management firm, is pleased to announce the acquisition of Bay Financial Management Limited ("Bay"), an IFA based in Honiton, Devon, which was completed on 20 February 2017 (the "Acquisition"). As a result of the Acquisition, Seamus Coleman, Simon Durant and Nigel Hull have joined the AFH Group.

Under the terms of the Acquisition, the maximum consideration payable by AFH is GBP1.4 million based on the performance of Bay over the next 24 months.

The consideration for the Acquisition is to be paid in cash. The initial consideration has been satisfied by a payment upon completion of GBP595,000 funded from the Company's existing cash resources.

Further deferred consideration of up to GBP805,000 will be payable over the next 24 months in two tranches and dependent upon set performance criteria of Bay over the period.

Bay will add approximately GBP73m to AFH's funds under management.

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

"This acquisition continues to strengthen our presence in the South West and I look forward to working with Seamus, Simon and Nigel to further develop AFH.

The acquisition of Bay is our fifth acquisition this year and will be integrated in line with our established model to enhance shareholder value during the current financial year. We continue to have a strong pipeline of future acquisition opportunities."

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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February 21, 2017 02:00 ET (07:00 GMT)