AFH Financial Group Plc
LSE : AFHP

March 30, 2012 02:00 ET

Audited Results for the period 23 June 2011 to 31 October 2011

                                                                                                  30 March 2012
                                                                                                   GB00B4W5WQ08
                                                                                                               
                                                                                                               
                                            AFH Financial Group PLC
                                            ("AFH" or the "Group")
                                                       
                                                Audited Results
                              for the period from 23 June 2011 to 31 October 2011

AFH,  PLUS-SX Newcomer of the Year 2012 and a leading discretionary wealth management and independent financial
advisory  (IFA)  firm, today announces consolidated audited results representing the 131 day  period  from  its
flotation  on  PLUS-SX  on 23 June 2011 to its financial year end on 31 October 2011. AFH's  October  year  end
coincides with that of its principal operating subsidiary,  AFH Independent Financial Services Ltd (trading  as
AFH  Wealth Management), which generates over 90 per cent of the Group's revenue and whose results for  the  12
months ended 31 October 2011 are reflected below.

Group highlights

    *       Strong balance sheet with net assets of £11.3m and cash of £1.7m with no bank debt
    *       EBITDA of £227,387 (before exceptional items, share option costs and flotation costs)
    *       Adviser numbers up 32% from 53 at flotation to 70 today
    *       Six acquisitions completed since June 2011
    *       AFH voted as PLUS-SX Newcomer of the Year at the 2012 PLUS Awards
        
Main operating business highlights

    *       Strong performance from AFH Independent Financial Services Ltd.
    *       Gross revenue up 12% (on an annualised basis) to £5.4m for the 12 months ended 31 October 2011
    *       Recurring income at 49% of revenue
    *       EBITDA of £827,000 (up 15% on an annualised basis)

Commenting, Alan Hudson, Chairman and Chief Executive of AFH Financial Group PLC, said:

"I am delighted to be able to report a strong performance by the Group in such a challenging financial climate.
At  flotation,  we set out our strategy of driving growth both organically and by way of acquisition.  The  32%
increase in adviser numbers and the six acquisitions completed since June 2011 are strong evidence that we  are
successfully  implementing  this strategy.  The Group's management team has been strengthened  considerably  to
accommodate the further rapid expansion we envisage for AFH."

"We  expect  the  Group's  robust performance to continue, with the integration of the  new  advisers  and  the
acquired businesses having a real impact in the second half of the financial year."

"AFH  is  cash  generative and profitable, with a strong balance sheet. The Board believes that  the  Group  is
therefore well placed to prosper in the years ahead."


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 or Harry Fielder                                                                          


Chairman and Chief Executive's Statement

I  am pleased to report the consolidated audited results for the 131 day period from AFH's flotation on 23 June
2011  to  its  financial  year  end  on 31 October 2011. AFH's October year end  coincides  with  that  of  AFH
Independent  Financial  Services  Ltd,  the  Group's principal  operating  subsidiary  trading  as  AFH  Wealth
Management. This principal subsidiary generates over 90 per cent of the Group's revenue and its results for the
12 months ended 31 October 2011 are reflected below.

The  Board  is pleased with the Group's performance during the period, given the impact of the flotation  costs
and  the  inevitable  distraction of management's time.  I am delighted to report that, despite  this  and  the
ongoing macro-economic uncertainty, the Group traded profitably throughout the period and ended it with cash of
£1.7m and no bank debt.

Three acquisitions were made in October 2011, with a further three acquisitions made since the period end.  The
three  businesses  acquired in 2012 have added more than 1,300 new clients to the Group and  I  am  pleased  to
report  that all acquisitions made since June 2011 have been successfully integrated into the Group. The  Board
anticipates that the Group will make further complementary acquisitions in due course as it takes advantage  of
opportunities arising out of the wider economic downturn and the Retail Distribution Review discussed below. As
previously  stated,  the  principal benefit for AFH lies in the opportunity to provide  advice  and  investment
services to the newly acquired clients and deliver an incremental increase in AFH's recurring revenues.

The  Board  is  also pleased that the successful execution of its strategy has compensated for the  challenging
wider economic conditions. In its financial year ended 31 October 2011, AFH Independent Financial Services  Ltd
increased  gross  revenue  to  £5.4m (up 12% on an annualised basis) and EBITDA  to  £827,000  (up  15%  on  an
annualised basis). Recurring income, which is not reliant upon new business, now represents nearly half of  the
Group's revenue.

Organic  growth, through the recruitment of new, high quality, independent financial advisers, is  accelerating
and the Group has been active in growing adviser numbers, up a third, from 53 at the date of our 2011 flotation
to 70 today.

The  Retail  Distribution Review (RDR) comes into effect in January 2013 and will change the  retail  financial
services  landscape considerably. Whilst it represents a threat to a significant proportion of IFA  businesses,
we  nevertheless continue to see the RDR as a huge opportunity for AFH, which is well placed to take  advantage
of the transformation.

On  behalf  of  the  AFH Board, I would like to formally thank our staff and shareholders for  their  continued
support.  Each  year  we  set ourselves challenging targets across the Group, and each  year  our  team  reacts
positively to the challenges set. Although we have been active in recruiting new advisers, we also continue  to
develop  and promote our people from within at every opportunity. 2012 remains an exciting year for  the  Group
and I look forward to reporting on further progress throughout the new financial year.

At  flotation,  we set out our strategy of driving growth both organically and by way of acquisition.  The  32%
increase in adviser numbers and the six acquisitions completed since June 2011 are strong evidence that we  are
successfully  implementing  this strategy. The Group's management team has been  strengthened  considerably  to
accommodate the further rapid expansion we envisage for AFH.

We expect the Group's robust performance to continue, with the integration of the new advisers and the acquired
businesses having a real impact in the second half of the financial year.

AFH  is  cash  generative and profitable, with a strong balance sheet. The Board believes  that  the  Group  is
therefore well placed to prosper in the years ahead.




AFH FINANCIAL GROUP PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 OCTOBER 2011

                                                                                                         Period
                                                                                                          ended
                                                                                                     31 October
                                                                                                           2011
                                                                                                              £
                                                                                                   
Turnover                                                                                              2,107,966
                                                                                                   
Cost of sales                                                                                        (1,053,835)
                                                                                                        -------
Gross profit                                                                                          1,054,131
                                                                                                   
Administrative expenses                                                                                (950,386)
                                                                                                        -------
Operating profit                                                                                        103,745
                                                                                                   
Other interest receivable and similar income                                                                 54
Interest payable and similar charges                                                                     (4,945)
                                                                                                        -------
Profit on ordinary activities before taxation                                                            98,854
                                                                                                   
Tax on profit on ordinary activities                                                                    (55,538)
                                                                                                        -------
Profit on ordinary activities after taxation                                                             43,316
                                                                                                        -------
Earnings per share (pence)                                                                                     
Basic                                                                                                     0.311
Diluted                                                                                                   0.304
                                                                                                        -------
The profit and loss account has been prepared on the basis that all operations are continuing operations.
                                                                                                   
There are no recognised gains and losses other than those passing through the profit and loss account.
                                                                                                   



AFH FINANCIAL GROUP PLC

BALANCE SHEET
AS AT 31 OCTOBER 2011

                                                                                                              
                                                                                                             2011
                                                                                                                £
                                                                                                       
Fixed assets
Intangible assets                                                                                      10,441,638
Tangible assets                                                                                            60,402
Investments                                                                                                   514
                                                                                                           ------
                                                                                                       10,502,554
                                                                                                         --------
Current assets
Debtors                                                                                                   938,143
Cash at bank and in hand                                                                                1,722,273
                                                                                                          -------
                                                                                                        2,660,416
Creditors: amounts falling due within one year                                                         (1,544,603)
                                                                                                          -------
Net current assets/(liabilities)                                                                        1,115,813
                                                                                                          -------
Total assets less current liabilities                                                                  11,618,367
                                                                                                        
Creditors: amounts falling due after more than one year                                                  (242,372)
                                                                                                        
Provisions for liabilities                                                                                (13,045)
                                                                                                          -------
                                                                                                       11,362,950
                                                                                                          -------
                                                                                                        
Capital and reserves
Called up share capital                                                                                 1,409,687
Share premium account                                                                                   9,867,812
Profit and loss account                                                                                    85,451
                                                                                                          -------
Shareholders' funds                                                                                    11,362,950
                                                                                                          -------

The Directors do not propose the payment of a dividend for this period.




AFH INDEPENDENT FINANCIAL SERVICES LIMITED

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2011
                                                                        Year Ended               9 Months
                                                                         31October               Ended 31
                                                                                                  October
                                                                              2011                   2010
                                                                                 £                      £
                                                                                                         
Turnover                                                                 5,369,641              3,601,276
                                                                                                         
Cost of sales                                                           (2,730,826)            (1,889,732)
                                                                           -------                -------
Gross profit                                                             2,638,815              1,711,544
                                                                                                         
Administrative expenses                                                 (1,824,964)            (1,183,063)
                                                                           -------                -------
Operating profit                                                           813,851                528,481
                                                                                           
Other interest receivable and similar                                            -                     35
income
Amounts written off investments                                                  -                 (1,000)
Interest payable and similar charges                                          (219)                (1,667)
                                                                           -------                -------
Profit on ordinary activities before                                       813,632                525,849
taxation
                                                                                           
Tax on profit on ordinary activities                                      (169,285)              (150,885)
                                                                           -------                -------
Profit for the year                                                        644,347                374,964
                                                                           -------                -------
                                                                                                               
                                                                                                               
 


AFH INDEPENDENT FINANCIAL SERVICES LIMITED

BALANCE SHEET

AS AT 31 OCTOBER 2011

                                                                    2011                           2010
                                                                £               £              £               £
                                                                                                   
Fixed assets
Tangible assets                                                            60,402                         50,261
                                                                                                   
Current assets
Debtors                                                 1,493,055                      1,567,665   
Cash at bank and in hand                                  148,112                        210,072   
                                                          -------                        -------   
                                                        1,641,167                      1,777,737   
Creditors: amounts falling due within                  (1,068,005)                    (1,021,710)   
one year
                                                          -------                        -------   
Net current assets                                                        573,162                        756,027
                                                                          -------                        -------
Total assets less current liabilities                                     633,564                        806,288
                                                                                                   
Provisions for liabilities                                                (13,045)                       (10,116)
                                                                          -------                        -------
                                                                          620,519                        796,172
                                                                          -------                        -------
                                                                                                   
Capital and reserves
Called up share capital                                                   170,100                        170,100
Profit and loss account                                                   450,419                        626,072
                                                                          -------                        -------
Shareholders' funds                                                       620,519                        796,172
                                                                          -------                        -------
                                                                                                   

END

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  • AFH Financial Group Plc