AFH Financial completes acquisition of Britton

Financial planning led wealth management firm, AFH Financial Group, has completed the acquisition of Colchester-based Britton.

Following the acquisition, Ken Kerr will retire and the clients of Britton will be serviced by existing AFH advisers.

Under the terms of the acquisition, the maximum purchase price is £2.08m based on the ongoing recurring revenue of the business subject to the fulfilment of certain financial targets. For the financial year ended 31 May 2017, Britton made reported pre-tax profit of £352,551.

The initial consideration for the acquisition is £1.1m in cash, funded from the company's existing cash resources. A further deferred consideration will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the business acquired.

Chief executive Alan Hudson said: "This first purchase of an IFA business during the current financial year demonstrates the continued high level of activity that we are seeing in the market. The latest acquisition enhances our position in the South East of England and continues our strategy of providing a stable and well capitalised business within which the clients of retiring IFAs can continue to receive appropriate professional advice and investment management."

At 0855 GMT, the shares were down 1.6% to 251p.