Page 56 - Investing in Praetura Group - Christopher Carter
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Forecast Commentary (ctd)
Commentary continued…
Having produced these forecasts last year • PAF growth has been agreed by the strategic acquisition opening up
both PAF and PCF have fleshed out their 3 PAF Group board at the last board another market (soft asset) and the
year plans, which would accelerate the meeting to be made up as follows: securitisation funding hence the make-
forecasts to reaching a combined book of up of that deal
over £275m by the end of 2021 (a year • Grow the overall book to c.£200m
earlier than planned) over the next three years without • Any further acquisitions will be focused
changing the key principles of the on acquiring management teams
The make up of that growth is as follows: business or attitude to risk through attractive long term incentive
plans (as per Praetura Direct Finance)
• Purely organic growth from PCF in line • Organically PAF Trading division rather than day 1 consideration or
with the business plan to date. With low and the KAF Trading division are buying lending books which are under
levels of attrition in the lending book targeted to increase their lending leveraged and using our senior debt
the business is able to scale quickly book from £100m to £130m in the (securitisation) to gear up their balance
having reached £30m within 24 months next three years (illustrating modest sheet to our 87.5% advance to pay the
growth) majority of the consideration
• The business is looking to add a second
very capable business development • £20m of additional lending book is Furthermore, the debt numbers do not
director who, along with a £10m expected from Praetura Direct include incremental performance from
Mezzanine line and the appetite from Finance, our new direct sales Praetura Debt Company
RBSIF (incumbent bank) to scale the division focusing on bus and coach.
book through syndication, gives the That team built a book of £20m in
business the ability to reach at least an their previous employment and
£80m overall lending book over the have a strong track record
next three years by continuing to write
the same business as it has since • £50m of growth through acquisition
inception
• New acquisitions are not expected to
be under a similar deal structure to
Kingsway, which was a very important
