AFH Financial Group Plc Acquires K.L. Plester Financial Services Holdings Ltd
The Board of AFH is pleased to announce the acquisition of K.L. Plester Financial Services Holdings Limited ("Plester"), based in Kidderminster, Worcestershire. The acquisition of Plester, which was completed on 9 February 2015, represents the seventh acquisition since the Company listed on AIM in June 2014 and the fourth during the current financial year.
The Plester acquisition will add approximately £600,000 per annum of recurring revenue to the Company. Jon Rowe and Keith Plester's clients will be taken over by AFH's existing advisers following their retirement on completion. Peter Machin, a director and shareholder of Plester, will join AFH with immediate effect as a financial adviser.
Under the terms of the acquisition, the maximum consideration payable by AFH is £1,717,200 in cash. This will be satisfied by a cash payment on completion of £745,200, followed by a further cash consideration of up to £972,000, payable over the next 26 months in two tranches, dependent upon the performance of Plester over the next two years. The consideration will be satisfied from AFH's existing cash resources.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"We are pleased to announce the acquisition of Kidderminster-based Plester. It is good that the flexibility of our acquisition model accommodates the varying needs of the principals within the business. In this case, allowing the retirement of Jon and Keith, and the continuance of Peter's career within a larger group, with all three able to crystallise the value in their business. I look forward to working with Peter in the years to come."