Ultimate Finance Group plc : Placing to raise £1m to support future growth

Placing to raise £1m to support future growth 27 January 2012

Ultimate Finance Group plc (AIM: UFG), a leading provider of financial solutions to SMEs, announces a successful placing raising approximately £1 million, before expenses ("the Placing").

Jeremy Coombes, Co-Founder and Chief Executive Officer, commented: "We are delighted with the level of support received from both new and existing shareholders. The Placing strengthens the balance sheet and supports our future growth strategy."

Details of the Placing

The Placing, which was over subscribed, involves the issue of 7,462,040 ordinary shares of 5 pence each ("Ordinary Shares") at a price of 13.4 pence ("the Placing Price") per Ordinary Share ("the Placing Shares"). The Placing Price represents a discount of approximately 5.13 per cent. to the closing mid-market price of 14.125 pence per Ordinary Share on 26 January 2012, being the last dealing day prior to the announcement of the Placing.

The Placing is being undertaken to strengthen the Company's balance sheet and reduce the Group's gearing ratio.

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that admission will become effective at 8.00 a.m. on 30 January 2012 ("Admission"). Immediately following Admission the Company's issued share capital will consist of 57,259,059 Ordinary Shares ("Enlarged Share Capital")and the Placing Shares will represent approximately 13.03 per cent. of the Enlarged Share Capital.

The Placing Shares will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared on or after the date they are issued. It is expected that CREST accounts will be credited with entitlements to Placing Shares as soon as practicable after 8.00 a.m. on the day of Admission (as the case may be) and that share certificates (where applicable) will be despatched as soon as practicable after Admission.

Related party interests

The following directors ("the Participating Directors") have participated in the Placing:

	Placing Shares	Revised Total Holding	% of Enlarged Share Capital
Roger McDowell	1,492,538	1,492,538	2.61%
Matthew Cooper	932,836	932,836	1.63%

As directors of Ultimate Finance, the Participating Directors' participation in the Placing is classified under the AIM Rules as a related party transaction. The independent directors of Ultimate Finance, that is the directors excluding the Participating Directors, having consulted with its nominated adviser, WH Ireland Limited, consider that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned.

In addition, Helium Special Situations Fund ("Helium"), a substantial shareholder in Ultimate Finance, has subscribed for 1,363,678 Ordinary Shares in the Placing. Immediately following Admission the revised total holding of Helium will be 12,646,800 Ordinary Shares representing approximately 22.09% of the Enlarged Share Capital. The directors of Ultimate Finance, having consulted with the nominated adviser, WH Ireland Limited, consider that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Voting rights

In accordance with the Disclosure and Transparency Rules (DTR 5.6.1R) the Company hereby notifies the market that immediately following admission of the Placing Shares its issued share capital will consist of 57,259,059 Ordinary Shares and immediately following admission of the Conditional Placing shares its issued share capital will consist of 57,259,059 Ordinary Shares. The Company does not hold any shares in treasury. Shareholders may use these figure as the denominator for the calculations by WH Ireland they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA's Disclosure and Transparency Rules.

Contacts:

Ultimate Finance Group plc:	www.ultimatefinance.co.uk
Jeremy Coombes, Chief Executive Officer	[phone]
Shane Horsell, Finance Director	[phone]

WH Ireland Limited (Nominated Adviser and Broker)	www.wh-ireland.co.uk
John Wakefield / Marc Davies (Corporate Finance)	[phone]
Jasper Berry / Richard Smith (Corporate Broking)	[phone]
Threadneedle Communications (Financial PR)	www.threadneedlepr.co.uk
John Coles / Fiona Conroy	[phone]

About Ultimate Finance Group plc

Ultimate Finance group is a leading provider of financial solutions to SMEs across the UK. The Company is headquartered in Bristol with offices in Manchester, Tunbridge Wells and Birmingham and through its three subsidiaries, (Ultimate Invoice Finance, Ashley Commercial Finance and Ultimate Asset Finance), provides support to SMEs by funding their growth. As bank lending to SMEs is increasingly restricted in the current climate, the benefits of ultimate finance's flexible and fast-moving solutions become even more compelling.