Inspired Capital PLC Collaboration agreement with PROACTIS Holdings PLC (6591F)
February 24 2015 - 2:01AM
UK Regulatory
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RNS Number : 6591F
Inspired Capital PLC
24 February 2015
24 February 2015
Inspired Capital plc
("Inspired" or the "Company")
Inspired Capital plc, (AIM: INSC), a leading provider of
customer-focused financial solutions to SMEs, is pleased to
announce that it has signed an exclusive collaboration agreement
with PROACTIS Holdings PLC (AIM: PHD), a global spend control and
eProcurement solution provider to develop an accelerated payment
facility ("APF") for UK SMEs.
PROACTIS's eProcurement Platform, a Global Trading Network
("GTN") that enables collaborative electronic trading between
buyers and suppliers, will underpin the newly developed APF and
Inspired will accelerate the settlement of suppliers' pre-qualified
invoices. PROACTIS estimates that its c. 500 blue-chip buying
organisations are spending GBP60-80 billion per annum across c.
1million SME suppliers, thus representing a significant market
opportunity.
Research conducted by the Federation of Small Businesses (FSB
Dec 2014) suggests that almost one in five UK SMEs are affected by
a 'serious deterioration of payment practices'. The research
suggests that buying organisations are increasingly exerting power
on their supply chain with SMEs experiencing the adverse effects of
extended terms of trade. This trend presents a significant
opportunity for the provision of supply chain finance for SMEs,
whilst allowing buyers to maintain their working capital position.
The APF is an effective counter to this growing pressure on SMEs
and will offer a solution to cash-pressurised companies at an
affordable price. As a result, PROACTIS and Inspired believe that
the APF will have a high level of take-up within UK SMEs.
The collaboration with PROACTIS represents a commitment to a
significant product innovation in line with Inspired's intent to
offer a complete and diverse portfolio of financial services to
SMEs. Whilst adding a route to the rapidly growing Single Invoice
Finance market, the collaboration will also reduce Inspired's
reliance on a traditionally broker dominated distribution model for
its finance products.
The APF is expected to be launched to potential customers later
this year. A commercial agreement, with a minimum term of 12
months, will be finalised ahead of market launch.
Brian Cole, Inspired's CEO commented: "We are pleased to
announce our collaboration with PROACTIS and it is an important
step in our ambition to achieve scale in the UK market. More than
ever, UK SMEs are being squeezed by larger players in the supply
chain. This new product will provide a powerful cash-flow
management tool for companies in the UK and form a key part of our
financing proposition for SMEs, further supporting a heavily
underserved market."
Pierre Decote, Inspired's CMO commented: "We are delighted to
announce our collaboration with PROACTIS which will give us instant
access to a large portion of the fast-growing Single Invoice
Finance market. This also represents a significant step in Inspired
bolstering its product offering and is a testament to our ongoing
commitment to develop innovative financing solutions for UK
SMEs".
Rod Jones, Proactis CEO Commented: "The market place is rapidly
changing. Whilst our core principle of driving efficiencies in the
procurement and settlement processes remains the same, the PROACTIS
business is evolving from a buyer led software author to now
include supply chain finance enablement. We are particularly
pleased to be working with Inspired and believe it is a high
quality partner for this collaboration. We are enthused by the
value creation opportunity and look forward to realising that over
the coming months and years."
For further information please contact:
Inspired
Matt Cooper, Chairman via Newgate
Brian Cole, Chief Executive Officer
David Blain, Chief Financial Officer
Pierre Decote, Chief Marketing Officer
----------------------------------------- ---------------------
Cenkos Securities
Max Hartley (Corporate Finance)
Julian Morse (Sales)
Oliver Baxendale (Sales) +44 (0) 20 7397 8900
----------------------------------------- ---------------------
Newgate Communications
Tim Thompson
Jasper Randall +44 (0) 20 7653 9850
----------------------------------------- ---------------------
About Inspired Capital plc
Inspired Capital is building by organic growth and acquisition a
new customer-friendly force in SME lending by deploying long term
capital. There is an opportunity to grow considerably in an
underserved sector, with SMEs traditionally finding credit
difficult to access from the major clearing banks that often focus
on the security and stability of retail and larger corporate
lending.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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