1PM PLC Acquisition (5124J)
June 29 2017 - 9:01AM
UK Regulatory
TIDMOPM
RNS Number : 5124J
1PM PLC
29 June 2017
29 June 2017
1pm plc
(the "Group" or the "Company")
Acquisition of Positive Cashflow
for up to GBP9.0 million in cash and shares;
Second acquisition for recently established Commercial Finance
Division;
1pm plc, the AIM listed independent specialist provider of
finance facilities to the SME sector, is pleased to announce that
it has today completed the acquisition of Positive Cashflow Finance
(Holdings) Limited and its trading subsidiary Positive Cashflow
Finance Limited (together "Positive Cashflow"), the factoring and
invoice financing provider (the "Acquisition").
The consideration for the Acquisition, which was described as
the 'Possible Acquisition' in the circular sent to shareholders on
18 May 2017, will be up to GBP9.0 million, as previously disclosed.
This will be satisfied by the payment of GBP4.3 million in cash on
completion, a further GBP2.2 million in 5% loan notes redeemable in
quarterly payments over the 13 calendar quarters following
completion of the Acquisition, commencing on 30 September 2017 and
up to GBP2.5 million in new ordinary shares at 60 pence per share
based on a three year earn-out, conditional on achieving certain
financial performance targets.
Positive Cashflow is a Manchester-based business which provides
invoice finance facilities of between GBP10,000 and GBP1 million to
businesses across a broad range of industries. The company has over
190 customers and employs 24 members of staff at offices in
Manchester and Birmingham. Positive Cashflow is highly regarded
within the industry, has a good quality client portfolio and a
track record of healthy financial returns. Revenue for the year
ended 30 November 2016 was GBP4.1 million with adjusted profit
before tax of GBP1.1 million. As at 30 November 2016, the company
had a loan book of GBP23 million and receivables of GBP46 million.
The management team, led by David Smith, is highly experienced and
well respected and will continue to manage the business within the
1pm group following the Acquisition.
Positive Cashflow is the second acquisition in 1pm's recently
established Commercial Finance division which is headed by Ed
Rimmer. The Directors believe that Positive Cashflow, which
services clients predominantly in the North and Midlands will
complement Gener8 Finance, which was acquired by the Group in May
2017 and which services clients predominantly in the South.
Following the Acquisition, the Commercial Finance Division will be
comparable in size to the Group's Asset Finance and Loans divisions
and as such represents an important and material part of the
Group's growth strategy.
Ian Smith, 1pm's CEO, said: "Following on from last month's
acquisition of Gener8 Finance, the acquisition of Positive Cashflow
now completes the establishment of the group's new Commercial
Finance division and is a key step in the implementation of our
strategy to provide a comprehensive range of business finance
products to SMEs. 1pm now provides Asset Finance, Invoice Finance
and Business Loans to the SME sector throughout the UK, acting both
as a funder with approximately GBP120 million of own-book lending,
and as an established broker to other funders. Our range of
products and flexible offering provide a strong base for continued
growth."
Ed Rimmer, Managing Director of the Commercial Finance Division,
said: "I am delighted to welcome David Smith and his team into the
1pm plc group. Positive Cashflow Finance is a well-known name in
the invoice finance world, particularly in the North, and the
business has developed a strong reputation for providing a high
level of flexible and personal service to its clients and
introducers. I am looking forward to working with the team and
helping to take the business through its next stage of development
as part of the exciting growth plans that the 1pm group has for the
future".
David Smith, Managing director of Positive Cashflow, said: "We
are delighted to join the 1pm plc group. 1pm's extensive product
offering will greatly enhance our ability to continue to provide
outstanding service to our existing and future clients. We are also
delighted to have the opportunity of working with Ed Rimmer to take
the newly established Commercial Finance Division forward."
This announcement contains inside information.
29 June 2017
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, Harry
Pardoe (NOMAD), Julian
Morse (Sales) 0207 397 8900
Walbrook PR 0117 985 8989
Paul Vann 07768 807631
paul.vann@walbrookpr.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQPGUMWQUPMUWB
(END) Dow Jones Newswires
June 29, 2017 09:01 ET (13:01 GMT)
Time Finance (LSE:TIME)
Historical Stock Chart
From Apr 2024 to May 2024
Time Finance (LSE:TIME)
Historical Stock Chart
From May 2023 to May 2024