Bath-based specialist lender 1pm has made its second significant acquisition in eight months by taking over a provider of asset finance in the construction, recycling and haulage sectors.
1pm is paying up to £2.75m for Leicestershire-based Bradgate Business Finance Limited (BBFL) under its strategy of widening its range of funding options. 
Established in 2006, BBFL is an independent specialist provider of ‘hard’ asset finance to clients buying business critical equipment.
1pm provides finance for small and medium-sized enterprises. Last July it paid £12m for MHH Holdings, a Lancashire-based group which undertakes both own book and brokered-on business under the Academy Leasing name.
1pm said the acquisition of a ‘hard’ asset specialist was complementary to the ‘soft’ asset focus of both 1pm and Academy Leasing and will further expand the SME market sectors served by the group’s range of products and services.
It said BBFL had achieved an effective and profitable balance between writing lease business on its own-book and broking-on business to a high-quality panel of funders in order to generate cash from commissions, having developed a similar business model to that of Academy Leasing.
With greater access to capital as part of the 1pm group, BBFL will now have the ability to significantly grow its own-book while continuing to generate cash from broking activities.
BBFL had pre-tax profits £370,000 in the year of January 31 on turnover of £1.36m. It had an aggregate balance of its loan book of £3.45m with net assets of £1.20m.
BBFL will operate as an autonomous business unit within the 1pm group, managed by its existing highly experienced and well-respected management team.
1pm is paying £2.2m in cash on completion of the acquisition from its existing borrowing facilities and up to a further £550,000 in shares over the next three years subject to performance targets being achieved.
1pm CEO Ian Smith said: “This transaction is further proof of the group’s intent to build a significant asset finance and business loans group through a combination of strong organic growth and carefully selected acquisitions. The acquisition of BBFL adds the hard assets category, new SME business sectors and valuable management experience to our existing asset finance offering.”
BBFL managing director Richard Arnold added: “We are delighted to have this opportunity to take Bradgate Business Finance to the next stage in its development. This transaction will enable the business to grow significantly as part of the 1pm plc group, allowing us to join forces with 1pm and Academy to create a strong combined business, whilst continuing to build on the successful foundations we have laid within our own particular sectors of expertise.”
1pm chairman John Newman said the group’s trading in the first nine months of its current financial year, which includes a six-month contribution from Academy Leasing, continued to be strong and in line with management expectations for the financial year ending on May 31.
“This latest acquisition will help to enhance the trend of profitable growth delivered over recent years,” he said.
1pm, which was was admitted to the London Stock Exchange’s AIM market in 2006. provides assets finance from £1,000 to £50,000 for a period of between 12 and 60 months and £1,000 to £50,000 for business loans (repaid over 3-36 months).
