1pm subsidiary Positive Cashflow Finance, which provides invoice finance facilities for UK SMEs, hit its 3-year profit targets a year earlier than expected.
The growth targets in profit before tax were set when 1pm acquired Positive in 2017 to incentivise the senior management.
The planned aggregate growth in profits since acquisition has been achieved in two years, 1pm said.
As a result of this, in accordance with the earn-out arrangements agreed in 2017, the Positive management team will receive shares worth up to £2.5m.
With the earn-out achieved and as part of Positive’s succession planning, David Smith, a member of the founding management team and currently managing director at Positive, has announced his intention to step-down from his role with effect from 30 June 2019 in order to pursue other business interests.
Phil Chesham, also a member of the founding management team and currently sales director at Positive, has been promoted to the position of head of business and will manage Positive with the two other founder members, Peter Davis, finance director and Simon Cook, commercial director.
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David Smith said: “The last 12 years since we formed Positive have been a fantastic experience which I have enjoyed immensely. The sale of the business into the 1pm Group provided us with additional support we needed to take the business to the next level. We have a great team here and I am proud of what they have achieved. With the business on a strong footing, it’s time for me to step aside and let Phil step up and take the business on into its next stage of development within this progressive Group leaving me with time to focus on other business interests”.
Ian Smith, chief executive officer, said: “The management team at Positive Cashflow and their entire workforce have delivered an excellent performance in competitive trading conditions and I am delighted the Group can consider the earn-out complete one year early. This is a stand-out achievement.
“Positive Cashflow and the 1pm Group is indebted to the leadership of David Smith in delivering this performance and he leaves a legacy of a very successful business which Phil Chesham and the team will now develop and grow further. We thank David for his significant contribution and wish him well in his future career.”