1PM PLC £35m Funding Facility with British Business Bank (0316J)
March 27 2018 - 2:01AM
UK Regulatory
TIDMOPM
RNS Number : 0316J
1PM PLC
27 March 2018
27 March 2018
1pm plc
(the "Group" or the "Company")
FACILITY AGREED WITH THE BRITISH BUSINESS BANK TO PROVIDE GBP35m
OF ADDITIONAL FUNDING
-- Facility to be deployed through the Group's subsidiary
entity, Bradgate Business Finance Limited ("Bradgate"), to satisfy
growing demand for 'hard asset' leasing
-- Significant reduction in the Group's blended cost of borrowing
expected over the life of the facility
1pm plc, the AIM listed independent specialist provider of
finance facilities to the SME sector is pleased to announce that it
has signed an asset finance facility (the "Facility") with the
British Business Bank ("BBB") under BBB's ENABLE Funding programme
that will provide GBP35m of additional funding. The Facility will
enable the Group to significantly expand its asset finance lending
to businesses across the UK SME sector, primarily for those seeking
"hard asset" finance (equipment with robust residual values after a
period of use). The new facility increases the total funding
facilities available to the Group to in excess of GBP155
million.
The Group continues to experience strong demand for asset
finance including 'hard assets' the funding for which is provided
through its Bradgate subsidiary. The deployment of this Facility
will enable Bradgate to increase the amount and diversify the range
of lending for business-critical equipment used by SME businesses
while resolutely maintaining its strict underwriting criteria.
Deploying funds over the life of the Facility will enable the
Group to significantly reduce its blended borrowing cost thus
delivering one of management's key operational objectives to
increase the Net Interest Margin from the Group's lending
activities.
James Roberts, Chief Financial Officer, commented:
"1pm is delighted to be working with the British Business Bank
to facilitate further funding for SMEs' business-critical assets.
Deploying this funding helps to achieve our on-going mission to
provide access to finance to a broad range of UK SME businesses
whilst improving shareholder returns through lower borrowing costs
and, crucially, through a longer-term, secured funding line. The
ENABLE Facility from BBB represents an important new element in the
Group's mix of funding facilities, further bolstering our ability
to grow our asset, loan, vehicles and invoice financing activities
by providing an even wider range of cashflow solutions to the UK
SME market."
This announcement contains
inside information.
For further information, please
contact:
1pm plc
Ian Smith, Chief Executive
Officer 01225 474230
James Roberts, Chief Financial
Officer 01225 474230
Cenkos (NOMAD)
Max Hartley (NOMAD), Julian
Morse (Sales) 0207 397 8900
Walbrook PR 0117 985 8989
Paul Vann 07768 807631
paul.vann@walbrookpr.com
About 1pm:
The Company was admitted to AIM in August 2006.
1pm plc is a group of established 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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