View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
October 1, 2019

AFH Financial puts brake on acquisition activities

Wealth consolidator AFH Financial has decided to put a pause on its acquisition strategy due to the uncertain political and economic landscape.

The consolidator has made 50 takeovers in five years.

However, keeping in view the present market conditions, the firm now intends to prioritise organic revenue growth.

“This strategy is expected to unlock future working capital and, following the payment of deferred considerations as they become due, provide free cashflow to finance additional acquisitions in the future and deliver an appropriate level of ongoing dividends to shareholders,” AFH said.

This is the second time in three years that the firm has adopted such a strategy.

In 2016, AFH made a similar move after which its funds under management increased by 11%.

The firm believes that similar economic and political conditions that influenced its decision in 2016 are present this time around.

AFH also said that it does not require financing from the equity market and will fund its growth strategies using working capital.

AFH CEO Alan Hudson said: “The growth and strategy of the company has created a proposition for our clients that combines a market leading client centric service with a competitive cost model and has created a USP from which to achieve our three to five year aspirations.

“We seek to align our growth with operational efficiencies and during the current year the company has invested heavily in digital marketing and IT infrastructure, all of which has been expensed, whilst absorbing the cost of clients using our Pershingenabled AFH Direct platform.”

 

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International