AFH, the Financial Planning and wealth management group led by a Chartered Financial Planner, has reported post tax profits up 82% to £10.8m for the year ended in October 2019.

The Midlands-based company said in a strong set of results that revenues rose by 47% to £74.3m and margin had increased from 20.6% to 23.2%.

The company acquired eight firms during the year but said it would focus in the near future on organic growth. It expects “demand for Financial Planning-led wealth management services…to continue its rapid growth.”

AFH admitted recent acquisitions of some ‘multi-adviser’ firms had been far more ‘time intensive’ than traditional smaller firms and financial benefits from these firms would take longer to come through.

Funds under management during the year grew 40% to £6.2 billion. Average portfolio size per client is now £200,000 of investable assets and its new wealth division, set up in 2016, is growing.

The group plans to increase adoption of technology and will focus on digital marketing to generate “new opportunities for organic growth.”

Chartered Financial Planner and group chief executive Alan Hudson said: “I am delighted to report on yet another year of continued progress for AFH in the Financial Planning-led wealth management market. 

“The year under review produced a sixth consecutive year of growth and improved profitability since joining AIM in 2014.

"The group's strategy to increase shareholder value through the expansion of the AFH community remains at the heart of our growth. This strategy continues to be driven by a combination of organic growth through greater productivity of our advisers and by value accretive acquisitions financed on an earn out model.” 

"The group retains strong cash balances, in excess of its regulatory requirements, and its increasing adoption of technology and focus on digital marketing is generating new opportunities for organic growth, which remains the base on which the business has grown.

“The board believes that the demand for professional Financial Planning-led investment service will continue to grow and that the scale of AFH will enable the group to benefit from the regulatory and economic climate anticipated in 2020.”

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