AFH Financial Group Plc Acquisition (4932Z)

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RNS Number : 4932Z

AFH Financial Group Plc

03 September 2018

3 September 2018

AFH FINANCIAL GROUP PLC

("AFH" or the "Company")

ACQUISITION OF LFS & PARTNERS LIMITED

The Board of AFH, a leading financial planning led wealth management firm, is pleased to announce the completion of the acquisition of LFS & Partners Limited ("LFS"), a directly authorised firm based in Devon with offices in Barnstable, Taunton and Minehead. As a result of the transaction James Tucker, together with 27 financial and mortgage advisers and their support staff, will join AFH bringing over GBP300m of FUM to significantly expand the AFH presence in the South West.

Under the terms of the acquisition, the maximum purchase price is GBP4.2m dependent upon performance criteria of the business acquired. The initial consideration for the acquisition is GBP2.2m 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 August 2017, LFS made profit before tax of GBP425,000. On a post acquisition pro-forma basis, during the current year ended 31 August 2018 the business would have generated an estimated profit before tax in excess of GBP800,000.

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

"The acquisition of LFS is our twelfth transaction of the year and enhances AFH's strong position in the South West. The transaction complements our successful integration of Davisons in 2016 and 3 subsequent acquisitions in the region. I am pleased to welcome James and his team to AFH and I look forward to working with them to further the development of the AFH brand and to provide the LFS existing clients with the benefits of the enhanced AFH proposition."

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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September 03, 2018 02:00 ET (06:00 GMT)