AFH Financial Group reports surge in full year earnings

AFH Financial Group achieved a surge in full year earnings as revenues rose more than market expectations, the company reported on Monday.

The financial planning-led wealth management firm said earnings before interest tax, depreciation and amortisation (EBIDTA) jumped 115% to £2.8m in the year ended 31 October 2015. Revenues rose 40% to £21m as gross margins increased slightly to 52% from 51%.

The increase in revenue was driven by a rise in recurring fee income, which boosted annualised gross revenue per adviser to £143,000.

“This reflects our advisers' ability to self-generate business, the benefits of our centralised marketing and our regional and national affinity groups to attract new clients,” the company said in a statement.

During the period, AFH completed 11 acquisitions at an average capped consideration above £1m.

Looking ahead, the group said it was “well positioned” to meet increasing demand and regulatory changes.

"Given the progress made in 2015 and the early months of the 2016 financial year, the directors view the coming period as providing excellent prospects and look forward to extending AFH's brand, reach and reputation,” chairman John Wheatley and chief executive Alan Hudson said in a joint statement.

A dividend of 2.25p per share was recommended, up 50% on the previous year.

Shares rose 2.58% to 170.80p at 1546 GMT.