LONDON (ShareCast) - (ShareCast News) - 1pm, a provider of finance facilities to SMEs, is to buy broker Intelligent Financing (iLoans), established a secured loan note programme and created a new loans divisions in the company.
The company is to buy iLoans, which trades as Intelligent Loans, a broker that provides secured bridging loans, second charge loans and commercial mortgages, for up to £2m as part of 1pm's growth strategy.

The AIM-listed company sees the acquisition as an opportunity to fund selected loans on its own balance sheet so it can extend its product range into complementary sectors.

The £2m consideration comprised of £1m in cash and £200,000 in 1pm shares on completion of the acquisition at a price of 56.6p each and a further £800,000 depending on it achieving certain profit goals between 1 February 2017 to 31 May 2019.

The new shares are expected to be admitted to trade on AIM on 20 March and following admission, the company will have 57.87m shares in issue.

1pm has also established its first secured loan note programme, which was over-subscribed at proceeds of £1.1m and is repayable over three years, was drawn down to fund the cash consideration of iLoans and to meet demand for loans from SMEs.

The company has created a loans division to combine the interest revenue from the £14m loan book of receivables it already has with commission revenue from iLoans to replicate the 'funding and brokering' business model in the asset finance division

1pm Chief executive Ian Smith 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."

Shares in 1pm were up 4.42% to 59p at 1038 GMT.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE