TIDMOPM
RNS Number : 4864Z
1PM PLC
15 March 2017
15 March 2017
1pm plc
(the "Group" or the "Company")
ACQUISITION OF INTELLIGENT FINANCING LIMITED FOR UP TO
GBP2.0M
ESTABLISHMENT OF GBP7.5M SECURED LOAN NOTE PROGRAMME
AND FIRST ISSUE OF GBP1.1M
ESTABLISHMENT OF LOANS DIVISION
1pm plc (AIM: OPM), the AIM listed independent specialist
provider of finance facilities to the SME sector, announces the
following:
-- The acquisition of Intelligent Financing Limited, trading as
Intelligent Loans ("iLoans"), a brokerage engaged in the packaging
of secured Bridging loans, Second Charge loans and Commercial
Mortgages (the "Acquisition");
-- In accordance with the plans announced on 7 March 2017,
establishment of a GBP7.5m Secured Loan Note Programme ("SLNP") and
completion of the first issue under the SLNP of GBP1.1m to
part-fund the Acquisition; and
-- The establishment of a new Loans Division comprising the
Group's existing GBP14m own-book of loans to SMEs, plus the
Acquisition.
The Acquisition
The Company has acquired the entire issued and to be issued
share capital of iLoans.
iLoans is an established, FCA regulated, profitable business,
with a strong reputation in a growing market for secured Bridging,
Second Charge and Commercial Property loans. iLoans earns
commission income from a wide panel of lenders and a growing
network of approximately 1,200 introducers from whom a significant
level of repeat business is generated. In the financial year to 31
January 2017, iLoans completed over 250 commission-earning
transactions, recording GBP1.5m of commission income, an EBITDA of
GBP0.4m and a PBT of GBP0.3m.
The iLoans business was founded by Alun Winter and Robert Coles
who have in-depth sector knowledge and who have both agreed to
continue to run the business post-Acquisition from the existing
premises in Cardiff. The iLoans business has been built on an
efficient, scalable proprietary software technology platform, which
focuses on customer management and transaction process flows.
The Acquisition represents an opportunity for 1pm plc to fund
selected loans on its own balance sheet, thus extending the Group's
product range into adjacent, complementary sectors, which is part
of the Group's stated growth strategy. The Acquisition
consideration of up to a maximum of GBP2.0m comprises GBP1.0m in
cash and GBP0.2m in 1pm plc ordinary shares on completion at a
price of 56.5p per ordinary share. In addition, further cash
payments of up to GBP0.8m in total may be payable contingent upon
the achievement of iLoans' forecast profits in the period from 1
February 2017 to 31 May 2019.
An application has been made for 353,982 consideration shares to
be admitted to trading on AIM ("Admission"). It is expected that
Admission will occur on 20 March 2017.
Following Admission, the Company will have 54,877,753 ordinary
shares in issue admitted to trading on AIM. This figure may be used
by shareholders as the denominator by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the Company under the FCA's Disclosure and
Transparency Rules.
Secured Loan Note Programme
As announced on 7 March 2017, the GBP7.5m SLNP has been
established with the flexibility for the Group to issue loan notes
with a range of maturities, repayment profiles and interest rates,
fixed at the date of issue. The first issue under the SLNP, which
was over-subscribed at proceeds of GBP1.1m and is repayable over
three years, has been drawn down to fund the initial cash
consideration of the Acquisition.
The proceeds of further issues will be used primarily to meet
demand for loans from SMEs, and to provide the flexibility to fund
adjacent products, such as the products offered by iLoans and
further potential acquisitions as the Company's business develops.
The SLNP is secured by general corporate debentures granted by 1pm
plc (senior) and 1pm (UK) Limited (second ranking) and by the
assignment of receivables from customers funded through the SLNP
proceeds.
Loans Division
Since inception of its Loans product in 2014, the Group has
successfully grown its own-book of loan receivables, which
currently stands at approximately GBP14m. Establishing a Loans
Division enables the Group to combine interest revenue from this
book of receivables with commission revenue from iLoans, thus
replicating the 'funder and broker' business model successfully
operated in the Group's Asset Finance Division comprising Onepm
Finance, Academy Leasing and Bradgate Business Finance.
The Group anticipates good cross-selling opportunities within
the new Loans Division, for general purpose and property-backed
loans to SMEs and also between the Loans and Asset Finance
divisions. In pursuit of the Groups' stated strategy of developing
its digital capability, the Group will also launch its digital
transformation project, "Platform1", within the new Loans Division
in order to harness the technology platform in iLoans and to
implement further process automation initiatives. Finally, the
Group is pleased to announce the promotion of Peter Nolan,
previously Head of Underwriting, to the role of General Manager of
the Loans Division and the Platform1 project.
Commenting on these developments, Ian Smith, CEO, said:
"We are delighted to continue to deliver on our strategic
objectives of building scale, introducing adjacent, complementary
products and developing our digital capability. Furthermore,
maintaining risk mitigation by being able to replicate our
successful 'funding and broking' operating model is vitally
important. The acquisition of iLoans helps to achieve these
objectives and we anticipate further growth based on this sound
platform.
Organising ourselves internally along divisional product lines
and establishing relevant funding facilities for each product, such
as the Secured Loan Note Programme primarily for loans, will
further underpin our ability to grow. It also provides good
cross-selling opportunities to an expanding customer base.
We are committed to developing talent and I am particularly
pleased to see the promotion of one of our "junior board" to a
General Manager position within the Group."
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
LGB Corporate Finance
Angus Grierson, Director 0207 518 9892
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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