1pm plc has announced the acquisition of Intelligent Financing Limited, trading as Intelligent Loans (“iLoans”), a brokerage engaged in the packaging of secured Bridging loans, Second Charge loans and Commercial Mortgages. 1PM’s earlier announcement on 7 March 2017, regarding a £7.5 million Secured Loan Note Programme (“SLNP”) has effected completion of the first issue under the SLNP of £1.1 million to part-fund the acquisition. 1pm is creating an enhanced Loans division internally that will consist of the Group’s existing £14 million own-book of loans to SMEs, plus the iLoans portfolio.
iLoans is an established, FCA regulated, profitable business, with a strong reputation in a growing market for secured Bridging, Second Charge and Commercial Property loans. iLoans earns commission income from a wide panel of lenders and a growing network of approximately 1,200 introducers from whom a significant level of repeat business is generated. In the financial year to 31 January 2017, iLoans completed over 250 commission-earning transactions, recording £1.5 million of commission income, an EBITDA of £0.4 million and a PBT of £0.3 million.
The iLoans business was founded by Alun Winter and Robert Coles who have in-depth sector knowledge and who have both agreed to continue to run the business post-Acquisition from the existing premises in Cardiff. The iLoans business has been built on an efficient, scalable proprietary software technology platform, which focuses on customer management and transaction process flows.
The Group sees an opportunity to fund selected loans on its own balance sheet, thus extending the Group’s product range into adjacent, complementary sectors, which is part of the Group’s stated growth strategy. The acquisition consideration of up to a maximum of £2.0 million comprises £1.0 million in cash and £0.2 million in 1pm plc ordinary shares on completion at a price of 56.5p per ordinary share. In addition, further cash payments of up to £0.8 million in total may be payable contingent upon the achievement of iLoans’ forecast profits in the period from 1 February 2017 to 31 May 2019.