Harwood Wealth Management Group PLC Acquisition of AE Financial Ltd (0624I)

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RNS Number : 0624I

Harwood Wealth Management Group PLC

19 March 2018

19 March 2018

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

Harwood Wealth Management Group

("Harwood Wealth", "Harwood" or the "Group")

Acquisition of AE Financial Ltd

Harwood Wealth Management Group (AIM: HW.), a leading UK-based financial planning and discretionary wealth management business, is pleased to announce the acquisition of AE Financial Services Ltd ("AE Financial"), an established chartered Independent Financial Advisory firm based in Southampton from AE Insurance Services Ltd, a company jointly owned by David Hayward and Michael Wright (the "Acquisition"). The purchase price for the Acquisition is GBP4.6 million plus GBP1.54m in respect of net cash balances. The Acquisition has been approved by the FCA.

The Acquisition provides Harwood with a strategic hub in Southampton and enhances the Group's already established and growing presence along the South Coast. AE Financial will continue to operate as a standalone brand and will benefit from Harwood's processes, technology and investment strategies. David Hayward, director of AE Financial, will remain with the company. This is the Group's most significant acquisition to date and demonstrates Harwood's growing scale and capabilities.

For the year ended 31 December 2017, AE Financial reported revenue of GBP1.3 million and profit before tax of GBP0.5 million, both unaudited. The business has Assets Under Influence of GBP130 million.

The initial consideration of GBP2.4 million plus cash balances has been paid on completion, satisfied through the Company's existing cash resources. Further deferred consideration of up to GBP2.2 million will be payable in two tranches over next 24 months, subject to performance criteria of AE Financial being achieved.

David Hayward, Director of AE Financial said:

"We are very pleased to be joining such a well-respected and successful Group. I am confident that Harwood will be a perfect fit for our team and allow us to develop the business and continue to provide high quality and dedicated advisory services to our clients. We very much look forward to joining the team."

Peter Mann, Non-executive Chairman of Harwood Wealth Management Group, said:

"AE Financial is a strong addition to the Group and we look forward to welcoming both the team and clients to Harwood Wealth. As well as further augmenting our presence in a key area of the UK, this acquisition continues to build upon our successful model of acquiring IFA firms who share our values and culture. We look forward to continuing to deliver on our strategy, driving growth organically and through further M&A in the period ahead."

For further information please contact:

 
 Harwood Wealth Management Group 
  plc 
  Neil Dunkley, Joint Chief Executive 
  Officer 
  Alan Durrant, Joint Chief Executive      [phone] 
  Officer                                   2004 
 N+1 Singer Advisory LLP                   [phone] 
  Alex Price / James Hopton                 3000 
 Alma PR 
  Josh Royston / Rebecca Sanders-Hewett    [phone] 
  / Susie Hudson                            4218 
 

This information is provided by RNS

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March 19, 2018 03:00 ET (07:00 GMT)