Non-Standard Finance acquires Everyday Loans

Lending company Non-Standard Finance has agreed to acquire Everyday Loans – the consumer finance business of Arbuthnot Banking Group – from Secure Trust Bank for an enterprise value of £235m.

NSF said the deal will be funded by a placing and open offer of 188.2m new shares at an offer price of 85p each, the issue of new ordinary shares in NSF to Secure Trust Bank and a new debt facility.

The company said Everyday Loans is complementary to its existing Loansathome4u business, adding that there is considerable potential for accelerated growth under NSF's ownership.

It said Everyday Loans will enable entry into two of its target sub-sectors: an established branch-based lending business and the guaranteed loans market.

In addition, it said the company’s attractive risk return profile comfortably fits targeted sustainable return, noting revenue yield of 48% and risk-adjusted margin of 39.8% for the year ended 31 December 2014.

Chairman John van Kuffeler said: “With the completion of this acquisition we will have operations in all of our current target sub-sectors. Everyday Loans is a leading branch-based non-bank lender in the UK and its guaranteed loans operations, whilst small, provide a platform for growth in that market.

"Everyday Loans is a strong and differentiated business for which we have exciting expansion plans. By applying our expertise and management skills we intend to grow its branch network; widen its customer base; and accelerate growth in its guaranteed loans business.”

NSF floated earlier this year with the aim of consolidating non-bank lenders.

At 1123 GMT, NSF shares were down 4.3% at 89.92p.