Positive Cashflow directors buy out Infinity

MANAGEMENT at Manchester’s Positive Cashflow Finance has taken control of the business after securing a £22m funding line from RBS Invoice Finance.

The deal has given a partial exit to the lender’s Manchester-based private equity backer Infinity Asset Management which took a stake in 2007.

Positive employs 27 staff and provides funding for working capital, buyouts and restructuring to companies with a turnover of between £100,000 and £10m.

Last year pre-tax profits slipped 16% to £652,000 on sales of £3.6m, up 9%. The management team consists of Simon Cook, David Smith, Phil Chesham and Peter Davis.

Managing director David Smith said: “We have enjoyed a fantastic relationship with our investors. With this deal they will realise part of their investment but retain an interest in our business moving forward. We opened two new offices last year and have ambitious plans for further growth.
 
“When we were approached by RBSIF it became clear that they shared our vision for the future and put together a financial package that worked. The increased funding line will enable us to continue to develop and provide much needed working capital to SMEs throughout the UK.”
 
Daniel Finestein, managing partner at Infinity, said: “Positive has been a great investment for us achieving every target set and we are delighted to be able to realise a partial exit whilst retaining a stake in what is a very exciting business.”

Sean Powell, director of business development at RBSIF, said: “This underlines the commitment of both RBSIF and Positive in supporting the SME marketplace.”
 
Legal advice was provided by Bermans, Shoosmiths, Lockett Loveday McMahon and Gateley.