AFH Financial Group Plc

April 03, 2012 02:00 ET

Acquisition of The Arden Court Group Ltd

                                                                                               3 April 2012
                                          AFH Financial Group PLC
                   ("AFH" or the "Company"; together with its subsidiaries, the "Group")
                                 Acquisition of The Arden Court Group Ltd
                                            (the "Acquisition")
Seventh acquisition since IPO boosts turnover and client and adviser numbers
AFH,  winner  of the PLUS-SX Newcomer of the Year 2012 award and a leading discretionary wealth  management
and independent financial advisory (IFA) firm, today announces the acquisition of The Arden Court Group Ltd
("Arden"),  a Nottingham-based IFA. This acquisition marks AFH's seventh successful acquisition  since  its
IPO last year.

Arden,  established in 1994, is a respected IFA providing services to high net worth individuals and  small
to  medium sized enterprises throughout the UK and Europe. Arden currently has approximately 2,500  clients
whose  total  assets amount to around GBP100 million. In its financial year ended 31 May 2011, Arden  made  a
gross  profit of GBP418,000 on revenues of GBP1.01 million. Following the Acquisition, nine of Arden's advisers
will be integrated into AFH's Bromsgrove headquarters, taking AFH's total number of advisers to 80, up from
53  at  the  time  of its 2011 IPO. Nat Parmar, the current Managing Director of Arden, will  join  AFH  as
Regional Director (North). Arden is authorised and regulated by the Financial Services Authority.

The  initial consideration for the Acquisition is GBP362,000 which has been satisfied as to GBP337,000 in  cash
from  the Company's existing resources and as to GBP25,000 by the issue of 25,000 ordinary shares of 10p each
in  the  Company  ("Ordinary Shares") at a price of 100p per share. Deferred cash consideration,  up  to  a
maximum  of  GBP337,000, may also be payable depending on Arden's performance in the two years following  the
Acquisition.  AFH has also issued a total of GBP225,000 of loan notes (the "Loan Notes") to Arden.  The  Loan
Notes  are convertible into Ordinary Shares 13 months after completion of the Acquisition at a rate  to  be
determined by, amongst other things, Arden's performance over that period.

AFH's  results  for  the year ended 31 October 2011 demonstrated that the Group had  continued  to  perform
strongly,  despite ongoing economic uncertainties. The Directors of AFH believe that the  Acquisition  will
further  enhance AFH's operational strength and that the Group remains well placed to prosper in the  years

Following the Acquisition, the Company has 14,121,874 ordinary shares of 10p each in issue.

The directors of AFH Financial Group PLC are responsible for the content of this announcement

AFH Financial Group PLC                                                                       01527 577 775
Alan Hudson, Chairman and Chief Executive     
St Helens Capital Partners LLP                                                                020 7368 6959
Mark Anwyl or Duncan Vasey                             
Yellow Jersey PR Limited                                                                                   
Dominic Barretto                                                                              07768 537 739
Harry Fielder                                                                                 07747 788 221

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