Increased Funding Facility with NatWest
19 February 2020
(the "Group" or the "Company")
INVOICE FINANCE DIVISION SECURES INCREASED FUNDING FACILITY
PROVIDING FURTHER HEADROOM FOR GROWTH
1pm plc, the AIM listed independent specialist finance provider, is pleased to announce that it has further increased its back-to-back invoice finance funding facility with NatWest by an additional £5.0m to £42.0m. The facility will be used exclusively for the purpose of lending to UK businesses and provides the Group's two invoice finance businesses, Positive Cashflow Finance and Gener8 Finance, with additional funding to meet demand from their growing number of SME clients. Over the twelve months since 31 January 2019, the combined invoice finance businesses have achieved steady growth in client numbers and funds advanced to clients during this period have increased by 9%. Both businesses continue to experience robust demand.
In addition, under the expanded Medium-Term Loan Note ("MTNs") Programme, announced on 26 November 2019, the Group has now completed two issuances of loan notes, specifically for the Group's Loans Division, totalling £5.0m. These MTNs have been placed with institutional funders. A total of £8.8m of MTNs have now been issued.
The term lengths of the funding facilities for the Group's lease and loans divisions are largely "matched" with the term of the lending provided to UK SMEs. As such, the funding amortises over the duration of the lease or loan term, which is typically three years and is not impacted by interest rate changes. This matching practice and fixed interest rate policy are key elements of the Group's risk management and governance.
James Roberts, Chief Financial Officer, commented:
"I am delighted that the Group has further strengthened its long-standing relationship with NatWest which continues to thrive and expand in our invoice finance division.
"We have substantial funding facilities in place across all our lending divisions and I believe these facilities are reflective of the positive working relationships with our funding partners and our position within the marketplace. The provision of larger and more flexible facilities enables us to increase our ability to grow whilst maintaining margins and make available further funding for UK businesses."
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:
Ian Smith, Chief Executive Officer 01225 474230
James Roberts, Chief Financial Officer 01225 474230
Max Hartley / Ben Jeynes (NOMAD) 0207 397 8900
Julian Morse (Sales)
Walbrook PR 0207 933 8780
Paul Vann 07768 807631
1pm's strategy is to focus on providing or arranging the finance UK SMEs require to fund their businesses and arranging vehicle and property-backed finance for consumers. The multi-product range for SMEs includes asset, vehicle, loan and invoice finance facilities. The Group operates a "hybrid" lending and broking model enabling it to optimize business levels through market and economic cycles.
More information is available on the Company website www.1pm.co.uk
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