24 February 2015

Inspired Capital plc

("Inspired" or the "Company")

Inspired Capital plc, (AIM: INSC), a leading provider of customer-focused financial solutions to SMEs, is pleased to announce that it has signed an exclusive collaboration agreement with PROACTIS Holdings PLC (AIM: PHD), a global spend control and eProcurement solution provider to develop an accelerated payment facility ("APF") for UK SMEs.

PROACTIS's eProcurement Platform, a Global Trading Network ("GTN") that enables collaborative electronic trading between buyers and suppliers, will underpin the newly developed APF and Inspired will accelerate the settlement of suppliers' pre-qualified invoices.  PROACTIS estimates that its c. 500 blue-chip buying organisations are spending £60-80 billion per annum across c. 1million SME suppliers, thus representing a significant market opportunity.

Research conducted by the Federation of Small Businesses (FSB Dec 2014) suggests that almost one in five UK SMEs are affected by a 'serious deterioration of payment practices'.  The research suggests that buying organisations are increasingly exerting power on their supply chain with SMEs experiencing the adverse effects of extended terms of trade. This trend presents a significant opportunity for the provision of supply chain finance for SMEs, whilst allowing buyers to maintain their working capital position. The APF is an effective counter to this growing pressure on SMEs and will offer a solution to cash-pressurised companies at an affordable price. As a result, PROACTIS and Inspired believe that the APF will have a high level of take-up within UK SMEs.

The collaboration with PROACTIS represents a commitment to a significant product innovation in line with Inspired's intent to offer a complete and diverse portfolio of financial services to SMEs. Whilst adding a route to the rapidly growing Single Invoice Finance market, the collaboration will also reduce Inspired's reliance on a traditionally broker dominated distribution model for its finance products.

The APF is expected to be launched to potential customers later this year. A commercial agreement, with a minimum term of 12 months, will be finalised ahead of market launch.

Brian Cole, Inspired's CEO commented: "We are pleased to announce our collaboration with PROACTIS and it is an important step in our ambition to achieve scale in the UK market. More than ever, UK SMEs are being squeezed by larger players in the supply chain. This new product will provide a powerful cash-flow management tool for companies in the UK and form a key part of our financing proposition for SMEs, further supporting a heavily underserved market."

Pierre Decote, Inspired's CMO commented: "We are delighted to announce our collaboration with PROACTIS which will give us instant access to a large portion of the fast-growing Single Invoice Finance market. This also represents a significant step in Inspired bolstering its product offering and is a testament to our ongoing commitment to develop innovative financing solutions for UK SMEs". 

Rod Jones, Proactis CEO Commented: "The market place is rapidly changing. Whilst our core principle of driving efficiencies in the procurement and settlement processes remains the same, the PROACTIS business is evolving from a buyer led software author to now include supply chain finance enablement. We are particularly pleased to be working with Inspired and believe it is a high quality partner for this collaboration. We are enthused by the value creation opportunity and look forward to realising that over the coming months and years."

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About Inspired Capital plc

Inspired Capital is building by organic growth and acquisition a new customer-friendly force in SME lending by deploying long term capital. 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.