Listed national advisory firm and consolidator AFH Financial has completed its 18th acquisition since its flotation in 2011 with the purchase of Herefordshire IFA Robert Magee Associates, as it continues to deploy a £3.3m capital warchest raised earlier this year.

Robert Magee, owner and founder of the Leominster-based business being acquired, will be paid £486,000 for his business if it performs as expected in the next 26 months, made up of an initial £204,000 consideration and a further £282,000 earn-out provision.

The firm manages about £27m of funds for around 550 clients and in its most recently completed financial year had recurring revenues of about £136,000.

AFH will not be taking on additional staff following the acquisition despite the fact Robert Magee himself is leaving the industry.

The purchase of Robert Magee is AFH’s eighteenth such deal since it listed on ISDX in June 2011 and its fifth since the Retail Distribution Review was implemented.

It follows hot on the heels of the firm’s purchase of AG Financial Planning Ltd, an IFA based in Bridgend, Wales. With earn-outs, the maximum amount that will paid for AG, which has about £28m of funds under management and generates £140,000 in recurring revenues, is £422,000.

In August of this year AFH raised around £2.8m in equity and bonds to fund further acquisitions. Under the equity issue, the company sold 1.9m ordinary 10 pence shares at a price of 109 pence per share, raising a total of £2.1m. Under the bond issue, the company listed £752,000 worth of 8 per cent corporate bonds.

This was augmented last month when the firm raised another £500,000 through the sale of 418,410 10 pence shares purchased at a price of 119.5 pence each by a pair of private investors that have backed the company since its initial listing in 2011.

Alan Hudson, chairman and chief executive of AFH, said: “I am pleased to report this further enhancement of our client base and the funds that we manage.

“Robert Magee’s clients will now be advised by AFH’s advisers and will have immediate access to the comprehensive financial planning services that AFH provides.”