Wheatley confident in AFH Financial's current position
Investors in AFH Financial Group were gathering in Bromsgrove on Friday for the company’s annual general meeting, with chairman John Wheatley providing them and the market an update on the company’s trading.
AFH Financial Group
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Financial Services
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The AIM-traded firm had reported in its audited results, released on 30 January, that its core business was continuing to perform in line expectations and that recurring revenue remained strong as a result of the inflow of new funds during the period - a statement Wheatley reiterated on Friday.
He said that, as in 2016, gross margins remained above the 55% level.
“During the first four months of the current financial year the company announced five acquisitions, paying a combined £2.0m in initial cash consideration.
“Whilst these acquisitions are not expected to make a material contribution to our first half results, the benefits arising from these businesses will be apparent in our full year results and are expected to benefit earnings in the current year.”
Wheatley explained that, during the first quarter of the current financial year, the company made deferred payments, based on trading performance, of £1.07m in respect of acquisitions completed in previous periods and anticipated a further £1.3m to be paid during the second quarter.
“As set out in my previous statement, the company will pay an interim dividend of 3.0p on 4 May 2017 to shareholders on the register of members at the close of business on 18 April 2017.
“I am pleased to report that both the company's balance sheet, and pipeline of prospective acquisitions, remains strong and further selective acquisitions are anticipated during the current financial year.
“As at 1 March the company had cash balances of £4.1m.”
Wheatley said he and the directors remained confident that the group was well-positioned to take advantage of market opportunities as they arise.