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AFH Financial Group confident after bumper 2019
6th Mar 2020 11:20
(Sharecast News) - Wealth management company AFH Financial Group updated shareholders on its progress on Friday, describing 2019 as "another successful year" for it, making for the sixth consecutive year of profitable growth.
The AIM-traded firm, which was holding its annual general meeting, generated revenues of ?74.3m, up 46% from 2018, as well as an increase in earnings per share of 59%, an underlying EBITDA margin of 23.2%, and a 33% increase in its dividend per share to 8p.
Chairman John Wheatley explained that, underpinning the company's "exceptional growth" was its strategy to increase shareholder value through the expansion of the AFH community.
"Throughout 2019, AFH delivered on this strategy both organically, by increasing the productivity of our advisers, as well as by executing value accretive acquisitions financed on an earn out model," Wheatley said.
"We continued to implement operational efficiencies and improve the customer experience for our clients by investing in technology and infrastructure and reducing investment costs by leveraging the increased scale of AFH.
"At the year-end, our client funds under management had exceeded ?6bn."
Wheatley said that, following a period of consolidation and while continuing to focus on cash generation and the organic growth of the business, the company remained open to executing further acquisitions should suitable opportunities present themselves, with a focus on smaller independent financial advisors, and larger businesses where the majority of advisers were employed or equity participants in the target company.
"The success of 2019 has continued into the first four months of this financial year with revenues and fund inflows recorded at fourth quarter levels.
"We expect the growing requirement for professional financial planning to accelerate in the future and for the consolidation within the sector to continue as commercial factors and regulatory requirements encourage a smaller number of larger businesses to dominate the sector.
"The core business continues to be cash generative and the adjustment to the trading mix of the protection division has negated the need for further working capital in this division and contributed to the cash generation of the company since November."
John Wheatley said the company had maintained a strong balance sheet, and remained committed to investing in the necessary infrastructure, technology and management to support its steady progress towards the three to five-year aspirational milestones set in January.
"We look forward to updating the market on our progress in due course and would like to take this opportunity to thank our shareholders, employees and advisors for their sustained support as we continue to grow AFH and drive increased profitability and shareholder value."
At 1104 GMT, shares in AFH Financial Group were down 4.37% at 348.1p.
The AIM-traded firm, which was holding its annual general meeting, generated revenues of ?74.3m, up 46% from 2018, as well as an increase in earnings per share of 59%, an underlying EBITDA margin of 23.2%, and a 33% increase in its dividend per share to 8p.
Chairman John Wheatley explained that, underpinning the company's "exceptional growth" was its strategy to increase shareholder value through the expansion of the AFH community.
"Throughout 2019, AFH delivered on this strategy both organically, by increasing the productivity of our advisers, as well as by executing value accretive acquisitions financed on an earn out model," Wheatley said.
"We continued to implement operational efficiencies and improve the customer experience for our clients by investing in technology and infrastructure and reducing investment costs by leveraging the increased scale of AFH.
"At the year-end, our client funds under management had exceeded ?6bn."
Wheatley said that, following a period of consolidation and while continuing to focus on cash generation and the organic growth of the business, the company remained open to executing further acquisitions should suitable opportunities present themselves, with a focus on smaller independent financial advisors, and larger businesses where the majority of advisers were employed or equity participants in the target company.
"The success of 2019 has continued into the first four months of this financial year with revenues and fund inflows recorded at fourth quarter levels.
"We expect the growing requirement for professional financial planning to accelerate in the future and for the consolidation within the sector to continue as commercial factors and regulatory requirements encourage a smaller number of larger businesses to dominate the sector.
"The core business continues to be cash generative and the adjustment to the trading mix of the protection division has negated the need for further working capital in this division and contributed to the cash generation of the company since November."
John Wheatley said the company had maintained a strong balance sheet, and remained committed to investing in the necessary infrastructure, technology and management to support its steady progress towards the three to five-year aspirational milestones set in January.
"We look forward to updating the market on our progress in due course and would like to take this opportunity to thank our shareholders, employees and advisors for their sustained support as we continue to grow AFH and drive increased profitability and shareholder value."
At 1104 GMT, shares in AFH Financial Group were down 4.37% at 348.1p.