Member Article

Secure Trust Bank make consumer finance acquisition

Secure Trust Bank (STB) PLC has acquired point-of-sale loan providers V12 Group for £3.5m.

The deal covers V12 Group Finance Limited and its wholly owned subsidiaries, V12 Retail Finance Limited and V12 Personal Finance Limited.

STB has acquired the entire existing loan book, which at November 30, had approximately £35m.

On completion of the deal, STB will provide funding so that V12 can redeem approximately £7m of subordinated debt, principally held by Jon Moulton; and will repay bank finance of £28.5m.

The acquisition will underpin a push to deepen V12’s relationship with existing retailers, forging of new relationships and expansion of its product range and services.

Paul Lynam, Chief Executive Officer of Secure Trust Bank PLC, said: “Over the last three years STB has developed its own retail finance business with lending balances as at the end of September 2012 standing at over £60 million. Despite this rapid growth, the market opportunity remains very significant. The 2012 Finance and Leasing Association data showed that over £237 million of in store finance volumes were written in the month of October alone.

“The acquisition of V12 gives us greater critical mass and ownership of a technology-based platform necessary to provide consumers with in store and online point of sale finance. Like many non-bank financial institutions, V12’s ambitions have been frustrated by the lack of wholesale funding in the recent past. STB’s funding will help to unlock V12’s potential and I am delighted that Nick Davies, CEO of V12, and his management team are joining us and warmly welcome them to STB. I look forward to working together to optimise our retail finance proposition going forward.”

Chief Executive Officer of V12, Nick Davies, said: “We are delighted to become part of the STB team and look forward to playing a full part in their exciting future plans for growth. We believe that the benefits of being part of a bigger group will allow us to further enhance our current range of products and services which in turn will improve the service we can offer to our retailers and customers.”

This was posted in Bdaily's Members' News section by Tom Keighley .