Listed IFA AFH Financial Group has grown both revenues and profit before tax by 13 per cent during the first six months this year, to £8.22m and £610,000 respectively, on the back of adviser acquisitions and new fundraising.

While the first half results noted that 55 per cent of revenue growth during the period was generated organically, it also stated that seven acquisitions were made during the period, for a maximum consideration of £9.4m.

However, new business levels fell during the period, in part due to clients deferring pension advice and investment before the April at-retirement reforms.

The directors stated that they believe these changes will have a limited impact over the year, as further guidance is provided by the government and the opportunities and risks for investors are clarified.

“However, the group believes that the long term need for independent financial advice will be greater as a result of the new regulations and AFH is well positioned to benefit from these changes,” added the firm’s chairman John Wheatley.

Cash reserves as at the end of April stood at £4.3m, down slightly from £4.9m at the same point in 2014, although net assets were up 20 per cent to £11.3m.

In December, AFH announced the issue of 7.5 per cent unsecured corporate bonds and in January confirmed that £2.14m had been raised from the issue. This has provided the group with additional operational gearing, equating to 12 per cent of gross assets at that date, along with funds for acquisition opportunities without diluting equity shareholders.

Chief executive Alan Hudson stated that the firm remains profitable and cash generative with a strong balance sheet for its current size. “The directors’ continue to actively seek appropriately priced acquisition opportunities with a comparable culture to AFH to generate incremental opportunities for the group.”

“Our aim is to grow our client base through increased adviser numbers and greater productivity afforded by the AFH structure and centralised support functions.”

However, AFH’s Mr Wheatley added that this progress comes in spite of delays in the Financial Conduct Authority authorisation of new advisers due to changes in the processes.

During the period, the group continued to invest in its head office to support the current and future projected growth. As a result, administrative expenditure increased by 22 per cent to £3.8m.

peter.walker@ft.com