AFH Financial Group Plc
LSE : AFHP

November 02, 2011 03:00 ET

Acquisition of Three IFA Businesses

                                                                                            2 November 2011
                                                                                               GB00B4W5WQ08
                                          AFH FINANCIAL GROUP PLC
                                         ("AFH" or the "Company")
                                                     
                                    Acquisition of Three IFA Businesses
                                                     
The  Directors  of  AFH, a leading Discretionary Wealth Manager and Independent Financial Advisory  ("IFA")
firm,  are  pleased to announce that the Company has recently completed the acquisition of three  Midlands-
based IFA businesses for a total cash consideration of GBP371,500. These acquisitions are in line with  the
strategy set out in AFH's June 2011 Admission Document to take advantage of the opportunities arising  from
the  fragmented nature of the IFA market and the additional burdens imposed on certain IFA's by the  Retail
Distribution Review, which comes into effect from 31 December 2012.

HIGHLIGHTS:

*       Three IFA businesses acquired for GBP371,500 in line with Admission Document
*       Since June number of IFA's increased by 17%
*       Acquisitions provide opportunities to sell additional advice related services to new clients
*       Total staff up by 36% to over 100 since the beginning of the year
*       Cash in bank and no debt

The three businesses acquired will add more than 1,300 new clients to the Company. The principal attraction
for  AFH, however, lies in the opportunity to provide advice and investment services to the new clients and
the incremental increase in AFH's recurring revenues.

AFH  is continuing to investigate a number of opportunities to acquire additional IFA's and expects to make
further announcements in due course. Since its flotation in June 2011, AFH has increased the number of  its
IFA's  by  17%  and the Company expects to have more in place by the end of this year. Total staff  at  the
Company has also grown by 36% to over 100.
        
The consideration for the acquisitions has been satisfied from AFH's existing resources.

Commenting on the acquisitions, Alan Hudson, Chairman and CEO of AFH, said:

"Today's acquisitions reaffirm the Company's stated intentions within the Admission Document at the time of
flotation. It' been an incredibly active period since our June IPO this year, which has seen growth in all
aspects of the Company. The acquisition of these three IFA businesses will result in a significant increase
in recurring revenue, IFA's and additional advice related services. The Company has a healthy balance sheet
and continues to carry no debt.

"The Company remains well placed to grow and, in line with the strategy set out at the time of our listing,
we  continue  to  seek  to further our position through both organic and acquisitive growth.   The  Company
expects to update the market on progress in this respect in due course".

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

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


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