Academy Leasing has acquired a book of receivables for £1.6m of around 1,000 finance leases with SME customers for vehicle fleet equipment.

1pm, owner of Academy Leasing, said the gross receivable value of the book was £2.03m with an effective yield of 17%.

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Academy provided a debt collection service for the book before its acquisition so is operationally familiar with the underlying customers, assets and lease agreements.

Acquiring the book provides Academy and 1pm’s recently-acquired fellow-subsidiary, Bradgate Business Finance, with the opportunity to cross-sell contract hire, lease and hire purchase of fleet and commercial vehicles into this new customer base.

The purchase consideration was financed entirely through headroom in Academy’s block funding facilities, said 1pm.

Mike Nolan, 1pm’s chief strategic officer, said: "As well as adding to the Group’s lease portfolio, generating additional cash and profit over the next three years, this acquisition provides a great opportunity to introduce our existing product range to a new group of customers."

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Ian Smith, group chief executive, said: "The cross-selling leverage that can be pursued as a result of this latest earnings-enhancing transaction demonstrates the added value of 1pm’s acquisition strategy. The Board is pleased to have completed this transaction in the current financial year as part of its intent to build a significant asset finance and business loans group through a combination of strong organic growth and carefully selected acquisitions."