£13m share placing to tee up swoop for mystery invoice finance provider

AIM-listed 1pm, an independent provider of finance facilities to the SME sector based in Bath, is bidding to raise £13m in a share placing to acquire an as yet unidentified invoice finance provider to SMEs in the North West.

The proceeds of the fundraising will be used in part to satisfy the cash consideration for the purchase of Tracx Finance, the company that wholly owns Oxford-based Gener8 Finance, also a leading invoice finance provider to SMEs.

The remaining net proceeds will be used to finance the initial consideration for a further possible acquisition (in the North West) and to strengthen the company’s balance sheet.

Ian Smith, 1pm’s chief executive, said: “The successful fundraising to fund both the acquisition of Tracx Finance and the possible second acquisition and the establishment of our new commercial finance division, together represent an important milestone in the ongoing development of the group and demonstrates the implementation of a key element of the group’s stated strategic plan.

“This is to continue to expand our offering to UK SMEs by adding adjacent financial products and services which are complementary to our existing asset finance and business loans portfolios and which also create significant cross-selling opportunities.”