Independent
motor and asset finance provider Private & Commercial Finance
(P&C) has acquired a £6m motor finance receivables portfolio
from North Herts Credit Company (NHCC), for a consideration of
£4.5m in cash.
The AIM-listed finance house
expects to add £2.4m to its turnover in 2012 as a result of picking
up the portfolio, which is comprised of some 2,300 hire purchase
contracts.
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Most of the acquired paper is
due to mature within the next 24 months, while the portfolio will
be fully wound down within four years.
While P&C’s motor finance
business is almost exclusively broker-introduced, around 70% of the
new portfolio represents business introduced by dealers in NHCC’s
area of operation in Bedford, Hertfordshire and
Lincolnshire.
After NHCC found itself short
of wholesale bank funding to support consumer lending, the regional
lender wrote almost no business after September last year, and
began actively seeking a potential buyer.
The deal increases P&C’s
portfolio – which includes both consumer motor finance and business
asset finance receivables – to £110m. P&C has also taken on
three staff from NHCC as part of the agreement.
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By GlobalDataP&C CEO Scott Maybury
said: “This transaction, which is earnings-enhancing, is another
step in our strategy to actively grow the group’s
portfolio.
“We are on the lookout for future acquisitions and ideally
these would be of a comparable size and for leasing or hire
purchase assets suitable for our business finance
division.”
