Business
Acquisition of book of receivables
Acquisition of book of receivables.
About this update from Time Finance Plc
[{"type":"text","content":"\n \nRNS Number : 3488X 1PM PLC 05 May 2016 \n\n \n \n5 May 2016\n \n1pm plc\n(\"1pm\", the \"Group\" or the \"Company\")\n \nACQUISITION OF BOOK OF RECEIVABLES \nFOR £1.6M IN CASH\nby 1pm's wholly-owned subsidiary, Academy Leasing Limited\n \n1pm, 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 £1.6 million, satisfied in cash on completion.\n \nKey points:\n· The book of receivables comprises circa 1,000 finance leases with SME customers for vehicle fleet equipment.\n· The gross receivable value of the book is £2.03m with an effective yield of 17%.\n· 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.\n· 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.\n· The purchase consideration was financed entirely through headroom in Academy's block funding facilities.\n \nCommenting on the acquisition, Mike Nolan, 1pm's Chief Strategic Officer, said:\n\"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.\"\n \nIan Smith, Group CEO, added:\n\"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 ...