AFH Financial acquires Premier Wealth Management Harrogate

2nd Nov 2018 08:19

(Sharecast News) - AFH Financial has acquired Premier Wealth Management Harrogate, a directly authorised firm based in York.The AIM-listed wealth management firm acquired Premier for a maximum purchase price of £4.5m dependent upon the business meeting certain performance criteria over the next 26 months.AFH paid an initial consideration £2m in cash, funded from its existing cash resources.For the twelve-month period ended 31 December 2017, Premier reported revenues of £700,000 and pre-tax profits of £350,000. AFH also stated Premier had demonstrated "significant growth in both revenues and profitability" since then and has a current revenue run rate of £1.2m on a pro-forma basis, generating operating profits of £900,000m.Chief executive Alan Hudson, said: "The acquisition of Premier is the first transaction of our new financial year and, following the acquisition of Thomas Heald in August, continues the expansion of AFH in the North East. Premier has demonstrated high levels of profitable growth and I am pleased to welcome Richard and his team to AFH."As of 1015 BST, AFH shares had ticked up 0.53% to 381p.