Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
AFH Financial shares are up nearly 12% since we said to buy

AJ Bell is an easy to use, award-winning platform Open an account
We've accounts to suit every investing need, and free guides and special offers to help you get the most from them.
You can get a few handy suggestions, or even get our experts to do the hard work for you – by picking one of our simple investment ideas.
All the resources you need to choose your shares, from market data to the latest investment news and analysis.
Funds offer an easier way to build your portfolio – we’ve got everything you need to choose the right one.
Starting to save for a pension, approaching retirement, or after an explainer on pension jargon? We can help.
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Shares in wealth manager AFH Financial (AFHP:AIM) have rallied sharply after the firm released strong first-half results, confirming our faith in its buy-and-build strategy.
Revenue for the six months to 30 April was up 61% to £36.6m thanks to strong organic growth as well as four deals in the first half, although the full benefits from the latter won’t flow through until the second half. Post-tax profit increased by 80% to £4.5m.
Funds under management (FuM) grew by 68% to £5.4bn due to inflows, acquisitions and positive market moves, and chief executive and founder Alan Hudson is sticking to his goal of £10bn of FuM within three to five years, together with annual revenue of £140m and a 25% operating margin. Meanwhile the protection broking business, which offers life insurance and critical cover, almost doubled revenues to £7.3m in the first half and with a dedicated new office for its telephone operations the business could double in size again in the future.
SHARES SAYS: For as long as AFH can bolt on good businesses at four to five times earnings before interest, tax, depreciation and amortisation (EBITDA) to consolidate its position, we believe it should deliver further strong returns for shareholders. Keep buying.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
Our website uses cookies to give you a better browsing experience.
You can choose to accept all cookies, or control which we use by clicking 'Manage cookies'. To learn more, read our cookie policy.