For the year to October 31, the AIM-listed investment management company said its revenues are expected to be over £74mln, around 30% up on last year’s results, of which £29mln generated by new business, following the acquisition of eight assets.
The group also noted that its underlying earnings (EBITDA) are estimated to be £17mln, up 38% yeat-on-year, while funds under management reached £6bn in October, 27% more than in October 2018, and cash at the end of the period was £12mln.
AFH reiterated confidence in its three-to-five-year plan to reach £10bn funds under management, £140mln annual revenues and an EBITDA margin of 25%.
In a note to clients, analysts at 'house' broker Liberum said the firm continues to grow “at an impressive rate” compared to peers in a tough market environment.
The broker reiterated a 'buy' rating on AFH shares but reduced its target price to 484p from 568p to reflect cuts to its earnings per share forecasts for 2020 following a change to its Protection business revenue model.
In morning trade on Monday, AFH shares were higher 4.4% at 287p.