1PM PLC Acquisition of book of receivables (3488X)
May 05 2016 - 5:25AM
UK Regulatory
TIDMOPM
RNS Number : 3488X
1PM PLC
05 May 2016
5 May 2016
1pm plc
("1pm", the "Group" or the "Company")
ACQUISITION OF BOOK OF RECEIVABLES
FOR GBP1.6M IN CASH
by 1pm's wholly-owned subsidiary, Academy Leasing Limited
1pm, the AIM listed independent specialist provider of finance
facilities to the SME sector, is pleased to announce that its
wholly-owned subsidiary, Academy Leasing Limited ("Academy"), has
acquired a book of receivables for a consideration of GBP1.6
million, satisfied in cash on completion.
Key points:
-- The book of receivables comprises circa 1,000 finance leases
with SME customers for vehicle fleet equipment.
-- The gross receivable value of the book is GBP2.03m with an effective yield of 17%.
-- Prior to the acquisition, Academy provided a debt collection
service in respect of the book and is therefore operationally
familiar with the underlying customers, assets and lease
agreements.
-- Acquiring the book provides Academy and 1pm's
recently-acquired fellow-subsidiary, Bradgate Business Finance
Limited, with the opportunity to cross-sell contract hire, lease
and hire purchase of fleet and commercial vehicles into this new
customer base.
-- The purchase consideration was financed entirely through
headroom in Academy's block funding facilities.
Commenting on the acquisition, Mike Nolan, 1pm's Chief Strategic
Officer, said:
"As well as adding to the Group's lease portfolio, generating
additional cash and profit over the next three years, this
acquisition provides a great opportunity to introduce our existing
product range to a new group of customers."
Ian Smith, Group CEO, added:
"The cross-selling leverage that can be pursued as a result of
this latest earnings-enhancing transaction demonstrates the added
value of 1pm's acquisition strategy. The Board is pleased to have
completed this transaction in the current financial year as part of
its intent to build a significant asset finance and business loans
group through a combination of strong organic growth and carefully
selected acquisitions."
For further information,
please contact:
1pm plc
Ian Smith, Chief Executive
Officer 01225 474230
Mike Nolan, Chief
Strategy and Risk
Officer 01942 408520
WH Ireland (NOMAD)
Mike Coe / Ed Allsopp 0117 945 3470
Walbrook PR 0117 985 8989
Paul Vann 07768 807631
paul.vann@walbrook.com
About 1pm:
The Company was admitted to AIM in August 2006.
1pm plc is an established group of independent finance companies
focused on providing SMEs with accessible funding to add value to
their businesses. All customers must have good credit histories and
proven ability to repay their finance commitments.
Mission Statement - 'Helping the UK economy grow by supporting
SMEs'
More information is available on the Company website
www.1pm.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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