1PM PLC £3.4m Acquisition of Bell Finance Limited (1583C)
April 11 2017 - 2:01AM
UK Regulatory
TIDMOPM
RNS Number : 1583C
1PM PLC
11 April 2017
11 April 2017
1pm plc
("1pm", or the "Group")
ACQUISITION OF BELL FINANCE LIMITED
FOR UP TO GBP3.4M IN CASH AND SHARES
1pm plc (AIM: OPM), the AIM listed independent specialist
provider of finance facilities to the SME sector, announces that it
has today acquired the entire issued share capital of Bell Finance
Limited (the "Acquisition").
Background on the Acquisition:
Bell Finance Limited ("Bell" or the "Company"), established in
2000, is a successful, independent, specialist provider of funding
for business-critical equipment, primarily "hard" assets comprising
plant, machinery and vehicles, for Construction, Recycling and
Manufacturing. In addition, Bell provides "Caterham" branded
finance for kit cars. The Company is originating approximately
GBP6.0m of new business a year, the majority of which it funds on
its own balance sheet, with approximately 15% of deals
brokered-on.
Bell is FCA registered with a current loan book comprising over
400 live agreements amounting to GBP10.3m of receivables, including
GBP2.3m of unearned interest, i.e. future revenue. For its
financial year ended 30 November 2016, the Company's unaudited
results included revenue of GBP1.7m, profit before tax and
dividends of GBP0.4m and net assets of GBP1.1m.
The consideration for the Acquisition comprises the
following:
-- GBP2.3m in cash payable at completion including GBP0.3m
placed in escrow for up to six months, to be released on
achievement of certain integration milestones;
-- a further GBP0.3m of deferred cash over three years; and
-- an earn-out of GBP0.8m, comprising GBP0.6m worth of 1pm plc
shares at the fixed price of 66.7 pence per share and GBP0.2m in
cash, conditional on the achievement of trading forecasts over the
three year period following completion.
1pm has financed the cash consideration from within its existing
borrowing facilities.
Reasons for the Acquisition:
1pm intends to merge the operations of Bell into those of its
existing subsidiary Bradgate Business Finance Limited ("Bradgate"),
itself acquired in March 2016. Bell and Bradgate are both
specialist providers of hard asset finance solutions to a broad
range of largely owner-managed businesses. Their core strength is
access to a selected panel of funders whilst also having the
ability to act as a principal funder. They therefore provide their
clients with a wide range of competitive financing packages,
generating high yields and strong returns on capital. The book of
receivables for the combined business stands at approximately
GBP20m.
The Acquisition therefore meets two of 1pm's core strategic
objectives of, firstly, building scale and, secondly, replicating
the funding and broking model, which the Group successfully
operates in its Asset Finance Division. In addition, with greater
access to lower-cost funding as part of the Group, the combined
business will have the capacity for further, more profitable
growth.
Richard Batchelor and Mark Durman, the directors and principal
shareholders of Bell have been employed in the sector for many
years and have extensive customer contacts, which has formed the
basis for Bell's own book lending. Both directors have agreed to
continue to serve the Group working in conjunction with Richard
Arnold and Ian Sullivan, the directors of Bradgate. The merged,
enlarged business will operate under the Bradgate name from
Bradgate's premises in Lutterworth, Leicestershire.
Commenting on the Acquisition, Ian Smith, CEO, said:
"We are delighted to build on the recently announced acquisition
in our Loans Division, by completing this acquisition for our Asset
Finance Division. This latest transaction demonstrates our ongoing
commitment to delivering on our strategic objectives of building
scale and maintaining our funding and broking capabilities. The
acquisition of Bell and its merger into Bradgate creates a
substantial business for the funding of hard assets required by
many SME sectors and establishes a platform for further
growth".
The information contained within this announcement is deemed by
the Group to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
For further information,
please contact:
1pm plc
Ian Smith, Chief Executive
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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