AFH Financial Group PLC (AIM: AFHP), a leading financial planning-led wealth management firm, today announces the Group's consolidated audited results for the period ended 31 October 2020.
· Revenues up 4% to £77.1 million (2019: £74.3 million)
· Underlying* EBITDA up 5% to £18.1 million (2019: £17.2 million)
· Underlying* EBITDA margin increased to 23.4% from 23.2%
· Profit after tax maintained at £10.7 million (2019: £10.8 million)
· Earnings per share 25.0 pence (2019: 25.4 pence)
· Underlying** Earnings per Share increased to 34.1 pence (2019: 32.8 pence)
· Dividend per share maintained at 6.0 pence (2019: 6.0 pence)
· Funds under Management of £6.2 billion (2019: £6.2 billion)
*Underlying EBITDA excludes the 2020 IFRS 16 adjustment and the non-cash charge for share based payment costs to provide a like-for-like comparison.
**Underlying Earnings represents Underlying EBITDA as adjusted for taxation.
Year of consolidation leaves AFH in strong position for 2021:
· Both revenue and Underlying EBITDA growth achieved despite unprecedented market conditions
· Reduced outstanding contingent consideration on past acquisitions from £37.9 million to £19.3 million
· Continued investment in technology enabled staff and advisers to adapt quickly to the pandemic, maintaining contact with, and providing ongoing services to clients
· The Board expects the pace of consolidation within the sector to increase
· The Board believes demand for financial planning-led wealth management services will continue and towards the end of the reporting period saw a gradual increase in net inflows of client funds
· The Company continues to be cash generative and maintains a strong cash position
· Digital marketing expected to generate new opportunities for organic growth
· Given the resilience shown in 2020 and the early months of the 2021 financial year the Board views the coming year with confidence and looks forward to continued success
Alan Hudson, Group Chief Executive, commented:
"I am pleased to report on another year of progress at AFH towards our goal of becoming the UK's leading advice-led wealth management company. Despite the disruption caused by COVID-19 and the impact that it has had on our clients, advisers and staff, the Company achieved both revenue and EBITDA growth whilst maintaining our EBITDA margin.
"The Company continues to focus on the long-term needs of its clients and on reducing their overall cost of investing. Our clients entrust us to help them meet their financial planning objectives and we recognise that over a period of 20 years or more the cost of investing can represent a material cost compared to the original investment. For this reason, the Company uses its size and buying power for the benefit of its clients.
"The AFH business model remains underpinned by the culture that is encapsulated in our values. The Board recognises the multitude of stakeholders served by the AFH community and seeks to balance the interests of all stakeholders when implementing its business strategy.
"In the coming months we expect our strong pipeline of employed advisers to join the firm, providing us with a significant boost to AFH's advisory capacity and geographical reach at a time when we see the demand for professional financial planning growing significantly.
"As reported, even prior to the pandemic's impact on global markets, 2020 was to be a year of consolidation for AFH and we are extremely pleased to have finished the period with a strengthened balance sheet, significantly reduced outstanding contingent considerations and strong cash balances.
"Trading remains in line with the Board's expectations and the resilience shown throughout 2020 and in the first months of the new financial year leaves us confident for the year ahead.
"I would like to personally thank all our staff and advisers for the way in which they reacted to the changes and for the exceptional contribution that they collectively made to the Company and our clients."