SME funder 1pm swoops for Academy
A PRIVATELY-owned, independent vehicle, invoice and equipment finance company based near Warrington is to be acquired by a listed firm for up to £12m.
Academy Leasing, based on Yew Tree Way, Golborne, is the only trading company of MH Holdings (UK) Limited, which is being acquired by 1pm, am AIM-listed SME finance provider headquartered in Bath.
The owners of Academy, Mike Nolan and Hazel Jacques are staying with the enlarged business, with Nolan becoming 1pm’s chief strategic officer and managing director of Academy and Hazel Jacques chief marketing officer.
Mike Nolan said: “Academy Leasing has grown from humble beginnings in 1987 to become one of the UK’s leading providers of equipment and vehicle finance.
“We are proud to be supporting British business and of the enviable reputation we have built for being flexible, straight talking and financially robust.
“The acquisition by 1pm will help to bolster continued growth into the future. Academy Leasing will continue to trade under its own name and we are committed to further strengthening its brand as part of the enlarged group. It’s good news for the whole team.”
As at 31 March 2015, Academy’s own loan book amounted to £16m. Its average loan size is approximately £7,500 and is typically for a period of three to six years. Its funding is provided by a range of block funders. As at 31 March 2015 it had total block funding facilities of approximately £19m, of which nearly £11m was being utilised.
In its audited results for the year ended 31 March 2015, MHH recorded revenues of £5.1m, and profit before tax, amortisation and directors’ dividends of £1.8m. As at 31 March 2015 MHH had net assets of £3.1m.
1pm is paying £6m in cash on completion of the deal; £2.3m by way of the issue of 3,575,712 shares on completion; deferred consideration of up to £2.615m by way of the issue of up to 3.92m new shares, subject to the satisfaction of certain performance conditions; and £1m by the issue of vendor loan notes.
1pm chairman, Ian Smith said: “The acquisition of MHH substantially increases the size of our business and significantly expands both our customer base and our portfolio of products and services.
“It presents considerable potential for growth and further product development. The MHH management team bring with them many years of valuable industry experience and we look forward to working together to further enhance shareholder value.”
1pm is raising £7.3m before expenses to fund the cash element of the deal through a placing and open offer.
