REG - Renovo Group Plc - Trading Update and Proposed Change of Name <Origin Href="QuoteRef">RNVO.L</Origin>

InspiredAnnouncement

06/09/2014 16:39

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RNS Number : 4153M
Renovo Group Plc
16 July 2014 
 
16 July 2014 
 
Renovo Group plc 
 
("Renovo" or the "Company") 
 
Trading Update and Proposed Change of Name 
 
H1 growth reflects early stages of transformation into a large scale, full
service SME lender 
 
Proposed new name - Inspired Capital plc 
 
Renovo Group plc (AIM: RNVO), a leading provider of customer-focused financial
solutions to SMEs, is pleased to provide a trading update for the six months
ended 30 June 2014. 
 
Growth across the product suite has been strong in the first half of the year
and particular interest is being seen in the newer products. 
 
 Key metrics:                 30 June 2014  30 June 2013*  Growth  
                                                                   
 Number of clients            1,085         870            24.7%   
 Loans and other receivables  £48.6m        £38.1m         27.6%   
 
 
*These figures are those of Ultimate Finance Group plc and are prior to its
acquisition by Renovo but are shown here for comparative purposes. 
 
Renovo has increased its number of clients by 24.7% to 1,085 and increased the
total loans and other receivables by 27.6% to £48.6m, in comparison to 30 June
2013. 
 
Strong growth has been seen in our tailored offerings for construction, trade
and retail finance.  These are relatively new products, designed to meet
specific customer needs, and represent the Company's first steps in
diversifying its range of SME lending products. As at 30 June 2014, Renovo has
provided £9m of funding into its SME finance subsidiaries.  The cash has
allowed the business to grow its lending to SMEs and to trial new products
prior to them being leveraged by alternative debt funding, something that
restricted lending whilst Ultimate Finance was an independent business. We
continue to receive strong support from our core funding provider and see good
interest from new potential funders. 
 
Renovo has doubled its invoice finance and asset finance sales forces during
the period and we anticipate that this increased presence in the marketplace
will drive growth at an even greater rate in our 2015 financial year. 
 
We were very pleased during the period to have hired Brian Cole as CEO.
Brian's expertise and experience, previously as CEO at the £500m turnover UK
subsidiary of Capital One, has benefited the Company significantly and he has
begun the process of recruiting world class talent to join the existing senior
team, rebranding the business, expanding the sales and marketing functions and
setting the future technology strategy. 
 
A further update on progress will be provided in the interim results, due to
be released in September 2014. 
 
Matt Cooper, Chairman of Renovo Group, commented: "We are pleased that our
core business continues to show strong growth and it is very encouraging that
the new products are seeing good demand.  With Brian joining as CEO in April
2014, our development of the team, brand, and infrastructure required to
deliver growth, both inside this business and beyond, continues as planned." 
 
Brian Cole, Chief Executive of Renovo Group, commented: "Our growth during the
first half of this year reflects the early stages of the transformation of
Renovo into a large scale, full service SME lender. We have made good progress
against our stated strategy, launching diversified products and successfully
doubling the invoice finance and asset finance sales force in order to seize
the growth opportunities we see in the market over coming periods. We look to
the future with confidence." 
 
Proposed change of name and requisition of General Meeting 
 
Renovo also announces its intention to change the name of the Company to
Inspired Capital plc. The change requires shareholder approval and a Notice
convening a General Meeting will be issued to shareholders today. The Company
believes the new name is more representative of its current activities as
opposed to those previously undertaken by Renovo. 
 
The General Meeting will be held at 12pm on 5 August at the offices of
Henderson Global Investors, 201 Bishopsgate, London. 
 
For further information please contact: 
 
 RenovoMatt Cooper, ChairmanBrian Cole, Chief Executive OfficerDavid Blain, Chief Financial Officer  +44 (0) 7721 978 218  
 Altium (financial adviser and nominated adviser)Paul LinesPhil AdamsAdam Sivner                     +44 (0) 845 505 4343  
 Panmure Gordon (broker)Dominic Morley                                                               +44 (0) 20 7886 2500  
 Newgate ThreadneedleJohn ColesFiona ConroyCaroline Forde                                            +44 (0) 20 7653 9850  
 
 
About Renovo Group plc 
 
Renovo is building by organic growth and acquisition a new customer-friendly
force in SME lending by deploying long term capital. The Renovo Board believes
that there is an opportunity to grow considerably in an underserved sector,
with SMEs traditionally finding credit difficult to access from the major
clearing banks that often focus on the security and stability of retail and
larger corporate lending. 
 
Renovo is working to transform the SME lending business model and platform
through a greater focus on technology and marketing, developing a broader
array of lending products and providing alternative routes to access funding
for SMEs at commercial rates which are accretive to the strategy. 
 
This information is provided by RNS
The company news service from the London Stock Exchange