Member Article

Provident Financial acquires £120 million car finance lender Moneybarn

Provident Financial plc, the Bradford-based non-standard lender, announces that it is set to acquire Duncton Group Ltd, trading under the Moneybarn brand, for £120 million.

The consideration for the acquisition will be satisfied by the payment of £120 million in cash on completion to the Moneybarn shareholders, funded through the proceeds of a placing of new ordinary shares representing 4.1% in Provident Financial with institutional investors.

Founded in 1992, Moneybarn provides car finance to non-standard customers in the UK, operating mainly through brokers with additional distribution sourced through independent car dealers and from its website directly to customers.

The business offers secured car loans, predominantly through conditional sale agreements and with the car typically used for necessities such as travelling to work rather than for luxury or discretionary purposes.

For the year ended 31 December 2013, Moneybarn reported audited profit before tax of £5.5 million, and gross assets of £151.6 million.

Commenting on the acquisition, Peter Crook, chief executive of Provident Financial, said: “I am delighted that Provident Financial is able to announce the acquisition of Moneybarn, which is the market leader in the non-standard car finance market.

“The acquisition provides an exciting opportunity to create a third leg of earnings that complements the organic growth opportunities available to the group. I look forward to working with Peter Minter and his team to realise the significant growth opportunity in this market.“

This was posted in Bdaily's Members' News section by Clare Burnett .