Buying Alpha Financial Markets Consulting PLC (LON:AFM)

I bought Alpha Financial Markets Consulting PLC (LON:AFM) for the UK Portfolio. AFM is a consultant to the global asset and wealth management industry. It advises on regulatory changes (among other things) and so ought to benefit from Brexit. The business is growing strongly (33% revenue CAGR since 2012) and expanding overseas. It is making small acquisitions which broaden its expertise into areas which may be of interest to existing clients. I think AFM's culture could provide a competitive advantage based on its Glassdoor reviews and BCI Score. AFM has no debt, £18.6 million in cash and generates high returns on capital which enables it to continue growing while paying a substantial dividend (3.4% forward yield). I expect AFM will prove to be a cyclical business, but overall the company has enough qualities to convince me to by shares at current prices which represent a forward price-to-earnings ratio of 14.3.