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AFH's acquisitions fail to dent profits

From News Jul 31 2012 BY: Esther Armstrong

AFH Financial Group, which has acquired eight IFA firms since its IPO last year, reported pre-tax profit up 14% to just shy of £500,000 for the first half.

The IFA group, which serves the mass affluent and high net worth market through both advisory and discretionary services, said like-for-like revenues were up 20% to £3.09m, compared to £2.5m in the same period in 2011, while pre-tax profit was up at £437,600 from £385,000 a year earlier.

Since flotation, adviser numbers are up 66% from 53 to 88 and five acquisitions have been completed during the period.

Alan Hudson, chairman and CEO of AFH, said: "Despite increased costs, market volatility and a reduction in adviser productivity due to taking exams, the group remains profitable, cash generative and extremely well placed to take advantage of changes in the sector as a result of the retail distribution review.

"We expect to report stronger second half performance and improving results as new advisers and recent acquisitions start to contribute."

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