1pm Group has agreed to issue £138,000 worth of shares as pay-out to executives within Positive Cashflow Finance, after the acquisition of the firm 16 months ago achieved the intended results.
London Stock Exchange-listed 1pm will issue around £1.3m shares, valued at 10p each, as payout for Positive’s former and current directors. These include David Smith, who retained the position of managing director following 1pm’s acquisition of Positive. Just under 49% of shares in 1pm remain in the hands of the group’s directors.
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The payout stems from 1pm’s £9m deal acquisition of Positive in June 2017. Under the terms of the deal, up to £2.5m would be paid in new shares to Positive’s directors, conditional on the division hitting its targets for the 2018, 2019 and 2020 financial years. Accordingly, the vast majority of the payout is still dependent on Positive’s contribution to group results over the next two years.
Ian Smith, 1pm group chief executive, said: “This reflects an excellent performance by Positive as part of the 1pm Group. The earnout involved hitting some challenging growth targets and to fully achieve them reflects well on the strength and potential of Positive as a business.
“This performance, combined with the other successful earnouts achieved across the group from our other acquisitions for the year ended May 31, 2018, adds to our conviction that we have acquired and successfully integrated well run, growing businesses with extremely capable teams who are adding value to the group as a whole.”
The takeover of Positive came in the later phase of an acquisition spree on the part of 1pm, which saw the group integrate lenders Intelligent Financing, Bell Finance and Trackx Finance over just a few months.
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