Money Advice Group secures £10million from PNC - bdaily.co.uk Money Advice Group secures £10million from PNC - bdaily.co.uk

Wednesday, May 30, 2012

Money Advice Group secures £10million from PNC - bdaily.co.uk

Money Advice Group secures £10million from PNC - bdaily.co.uk

Money Advice Group, one of the UK’s leading financial solutions companies, is embarking on a comprehensive growth strategy after securing an asset based lending facility worth £10 million, with PNC Business Credit.

In conjunction with, Dow Schofield Watts, Money Advice Group negotiated the credit facility to enable continued growth through a combination of working capital funding and finance for acquisitions.

Boasting a solid 10-year heritage, Money Advice Group currently holds approximately 8% market share of the fee charging financial solutions industry, with a turnover of £15million. Handling £250million of consumer debt, the financial solutions company has 28,000 clients that it hopes to grow by a third, with the help of the cash reserve from PNC.

Money Advice Group’s expansion plans have been stimulated by increased attention from the Office of Fair Trading (OFT), resulting in a compliance review in 2011, which saw a significant number of debt management companies either voluntarily exit the market or be forced to close due to lack of compliance. No longer open to flexible and often lax regulations, the debt management industry is now governed by the OFT’s more stringent ‘Debt Management Guidance’ published in March 2012 – and the enforcement of such has led to an industry trend of consolidation. This has created significant opportunities within the industry for larger players, with the potential to gain more market share by assisting those smaller players who wish to exit completely or sell their book of customers, in light of the cost associations of becoming compliant.

Money Advice Group’s proactive stance has allowed it to anticipate this shift in the debt management industry, and prior to its partnership with PNC, had self-funded an exercise in acquiring a small player exiting the market. The success of such a venture was the catalyst for its ambitious plans for growth and prompted the discussions with PNC to facilitate an acquisitions strategy.

The agreement with PNC is part of Money Advice Group’s overall expansion plans, which will see it take on an additional 3,500 feet² of office space within its existing premises, and boost its workforce with several new appointments within the management and client services teams. Money Advice Group has already recruited 60 members of staff in order to facilitate expansion, bringing the company workforce to 285.

Simon Brown, Managing Director, Money Advice Group commented: “With the introduction of more stringent compliance guidelines than our industry has ever witnessed, we spotted an opportunity in the market. We are extremely proud of our compliant culture but the costs associated with becoming compliant are too excessive for some of the smaller players, so what we find is they want to exit altogether or just sell on some of their books or assets. We trialed this approach last year with the successful acquisition of a smaller company, and it was from this we saw a clear direction for Money Advice Group.

“Our decision to work with PNC stemmed from its reputation in this arena, and its innovative approach to facilities based on loan to value rations against specific assets. This offered a more substantial funding line, enabling us to take advantage of the opportunities in the industry – specifically acquiring both medium-sized and large competitors, and to expand into new markets.

“We have ambitious plans for expansion and growth, and the partnership with PNC has assisted us in realising these plans. We look forward to continuing the working relationship with PNC Business Credit.”

Mark Shackleton, PNC Business Credit said: “Money Advice Group has the infrastructure, industry knowledge and experience to facilitate steady growth through acquisition.  There is a clear strategy to grow the business and we are pleased to be adding Money Advice Group to our growing portfolio of clients”.

ENDS



Forex: GBP/USD lower ahead of UK data - FXStreet.com
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Old money goes round again - Stuff

There seems to be no end to the Lions Club's generous spirit, so it was no surprise when the club teamed up with New World Kaikoura last week with their latest initiative, Heads Up for Kids.

Launched in July 2010, Heads Up for Kids is a unique collection which asks New Zealanders to donate old decimal and pre-decimal New Zealand currency, and all foreign money.

The obsolete cash is redeemed for New Zealand dollars which is used to fund education programmes and scholarships for New Zealand youth.

Because the obsolete currency is no longer legal tender, and foreign coins cannot be exchanged in this country, the project is not in competition with other fundraising dollars.

A number of young people have already benefited from Heads Up for Kids, receiving scholarships to Spirit of Adventure and Sir Edmund Hillary Outdoor Pursuits Centres.

The successful recipients were nominated based on their positive attitude toward their school and community.

To date, the Lions have collected more than 10 tonnes of coins and thousands of banknotes, bringing the total raised to more than $300,000.

The Reserve Bank has estimated there is $116 million in old New Zealand coins and banknotes that are unaccounted for.

The nationwide campaign reached a hefty milestone when its 10th tonne of coins was delivered to the Reserve Bank recently.

Two containers weighing 500 kilograms each and valued at $19,000 were full of out-of-date New Zealand currency ranging from threepences and half crowns to large 50 cent pieces.

The old New Zealand money is redeemed at the Reserve Bank and the foreign money shipped to Australia by the tonne and exchanged.

The money collected this year will be redeemed at face value for legal tender and will raise the total collected by the campaign to more than $300,000.

These funds are used to sponsor education programmes for New Zealand youth.

Lions Clubs New Zealand aim to collect one million dollars and will continue to provide positive experiences for good New Zealand kids who may not otherwise get the opportunity.

Donations of old New Zealand coins, or foreign currency, can be made at Kaikoura New World or by calling 0800 Old Money for a Lions Club member to collect.

- © Fairfax NZ News



Europe's money contracts again - Daily Telegraph Blogs

Very quickly, today's ECB data shows that Euroland's money supply is contracting again.

M3 fell by €51bn in April.

M1 fell by €55bn.

Private credit fell €55bn.

I don't yet have the country breakdown. My guess is that the Club Med implosion is grim.

Click for full size

Click for full size

The chart is based on the annual rate. It has not yet picked up the month-on-month contraction.

Clearly the sugar rush from the ECB's 3-year credit blitz has worn off, leaving behind some very toxic effects.

Those banks in Italy and Spain that used the money to play the Sarkozy redemption trade by purchasing sovereign debt – some with ten times leverage – are in serious trouble.

Today's spike in Italian yields shows that they are running out of LTRO money to keep the game. Spanish five-year debt is over 6pc. Muy feo.

Quite why anybody thought that a €1 trillion liquidity blitz through the banks is better than €1 trillion in genuine QE is beyond me.

I think the ECB has twisted itself in knots to comply with a dysfunctional mandate, enshrined in the dysfunctional Maastricht treaty. One error begets another.

This is not a criticism of Mario Draghi. He had no choice. The Italian and Spanish banking systems were crumbling last November. He outmanoeuvred the Bundesbank for a few months and bought time.

Unfortunately, that time has run out.

What next? Any reader brainwaves on how we get out of this?



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