AFH Financial Group Plc Acquisition (9374G)
02 June 2017 - 4:00PM
UK Regulatory
TIDMAFHP TIDMAFHB
RNS Number : 9374G
AFH Financial Group Plc
02 June 2017
2 June 2017
The Acquisition announcement for AFH Financial Group plc
released yesterday, 1 June 2017 at 5.24p.m. under RNS No 9301G has
been re-released in the interests of market clarity.
The announcement text is unchanged and is reproduced in full
below.
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITION OF EUNISURE LIMITED
The Board of AFH, a leading financial planning led wealth
management firm, is pleased to announce the acquisition of the
entire issued share capital of Eunisure Limited ("Eunisure"), a
face to face adviser led financial planning business focused on the
protection market based in Newmarket, Suffolk, which was completed
on 1 June 2017 (the "Acquisition"). The vendor and current managing
director Ralph Mortlock will remain on the board of Eunisure.
Under the terms of the Acquisition, the maximum consideration
payable by AFH is GBP4.5 million, based on a targeted increase in
Group profitability attributable to the core Eunisure business and
introduced financial planning led investment management.
The consideration for the Acquisition is to be paid in cash. The
initial consideration has been satisfied by a payment of
GBP1,500,000 which has been funded from the Company's existing cash
resources.
Further deferred consideration of up to GBP3,000,000 will be
payable over the next 48 months in four tranches dependent upon set
performance criteria of Eunisure being met in each 12 month
period.
For the 12 month period ended 31 December 2016 Eunisure
generated revenues of GBP5.6m, and reported profit before tax of
GBP241,927 (which the Company estimates to be approximately
GBP950,000 profit before tax on a pro forma basis).
Commenting, Alan Hudson, Chief Executive of AFH, said:
"The protection gap in the UK has been widely reported. Eunisure
is one of the leading face to face advisory businesses in this
sector with national coverage throughout the UK. I believe that the
acquisition of Eunisure will significantly increase the
distribution capacity of AFH whilst at the same time enabling
Eunisure to develop rapidly in its core market.
Eunisure has a young adviser force and we look forward to
developing a number of these advisers through our structured
training programmes to mortgage advisory and full financial
planning qualifications.
The deal has been structured to create shareholder value through
additional financial planning opportunities and growth within the
existing business and I look forward to working closely with Ralph
to drive both Eunisure and the distribution of AFH's wealth
management services in the future.
Yesterday's acquisition of Parker Sage together with Eunisure's
today represents a step change in profitability for the group
adding over GBP2 million of pro forma annualised EBITDA. In
addition we continue to have a strong pipeline of future
acquisition opportunities."
Enquiries:
AFH Financial Group PLC 01527 577 775
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
www.afhfinancialgroup.com
Liberum (Nominated Adviser and Broker) 020 3100 2000
John Fishley/Richard Bootle
This information is provided by RNS
The company news service from the London Stock Exchange
END
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