With the acquisition of the three businesses AFH will add more than 1,300 new clients to the company.
AFH has said that it will "take advantage of the opportunities arising from the fragmented nature of the IFA market and the additional burdens imposed on certain IFA’s by the Retail Distribution Review".
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However the primary reason for the buyout is the opportunity to provide advice and investment services to the new clients and increase AFH’s recurring revenues, the company said in a statement.
Since the June 2011, when AFH floated its IPO, the number of its IFA’s has gone up by 17% and the company plans to acquire more firms by the end of this year.
"The acquisition of these three IFA businesses will result in a significant increase in recurring revenue, IFA’s and additional advice related services. The company has a healthy balance sheet and continues to carry no debt."
"The company remains well placed to grow and, in line with the strategy set out at the time of our listing, we continue to seek to further our position through both organic and acquisitive growth. The company expects to update the market on progress in this respect in due course," said Alan Hudson, chairman and CEO of AFH.
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