23 Feb 2022 12:07
Schroder UK Public Private Trust plc (the "Company")
Atom Bank Funding Round
The Company (LSE: SUPP) is pleased to announce that its portfolio company Atom Bank ("Atom") has raised more than £75m in new equity priced at 70p per share as it continues to grow its profitability and drive towards an IPO. The raise will be led by BBVA and Toscafund.
Atom has made significant progress over the course of the last 12 months and surpassed the milestone of £3bn of mortgage completions during 2021. Atom's on-balance sheet lending to small businesses also surpassed £1bn during this period. As the bank continues to grow lending and reduce its cost of funds, margins and revenues have also continued to grow. Interest margin has risen and the bank delivered its first monthly operating profit during Q2, 2021. Revenues have continued to grow throughout the year while maintaining a tight control on costs. During 2021, customer deposits also grew reaching £2.5bn with £1bn of savings held in Atom's award winning Instant Saver.
This funding round will provide Atom with the capital to maintain this growth trajectory and is an important next step in its journey towards an IPO.
The impact of this funding round will be reflected in the next NAV update for the Company which is expected to be provided to the market in April.
Tim Creed and Roger Doig, Portfolio Managers of the Company, commented: "We are delighted to see the progress that Atom has made over the last 12 months. This funding round will provide further capital to enable the team to continue with the growth of the business and ultimately take it a step closer to an IPO. Schroder UK Public Private Trust plc has been an early supporter of Atom and this successful fundraise underpins the quality of the business and the commercial progress achieved over the last year. We remain highly confident in Atom's ability to generate significant further shareholder value for the Company in the mid- and long-term."
Enquiries:
Schroder Investment Management Limited
John Spedding Estelle Bibby (Press) | Tel: 020 7658 3206 Tel: 020 7658 3431 |