Diversified financial services and mining contractor Financial Resources Ltd is to take a 75 per cent stake in national commercial leasing and lending business Quik Rent.
Diversified financial services and mining contractor Financial Resources Ltd is to take a 75 per cent stake in national commercial leasing and lending business Quik Rent.
FRL managing director Barry Samuels revealed the deal at the Perth company's AGM today. The price was not disclosed.
"For Financial Resources Limited the Quik Rent agreement allows us to expand our customer base significantly, with this agreement acting as the platform for the introduction of a range of branded financial products and on-going cross selling opportunities," Mr Samuels said.
Mr Samuels also used the AGM to launch a new corporate identity for the company's mining services business, FRL Contracting, which will be headed up by new general manager Tony Lynch.
The contracting business has also formed a strategic alliance with FRL's Sovereign Hydrology business.
FRL Contracting has won significant work from St Ives gold mine and LionOre.
Mr Samuels said that while the company would maintain a financial services focus it would look at further acquisitions after being validated in its move to diversify into mining contracting.
Below is a copy of the Quik Rent release:
FINANCIAL RESOURCES LIMITED TAKES 75% STAKE IN NATIONAL COMMERCIAL LEASING AND LENDING BUSINESS QUIK RENT
Financial Resources Limited (ASX: FRL) is very pleased to announce that it has signed a Heads of Agreement with the owners of national commercial leasing and lending business Quik Rent that will see FRL take a 75% interest in the business.
Quik Rent, which has a number of branded rental and loan products, specialises in commercial equipment leasing and lending in the high volume / high margin sector of the Australian lending market.
It is expected that by 30 June 2006 Quik Rent will be writing, via its various branded products, up to 1,500 national lending contracts per month. These will be generated through its strategic alliances with high profile commercial and retail companies throughout Australia.
The business is in the final stages of completing a strategic alliance with a major national lending institution that provides additional financial products and national reach, as well as access to a branded Visa Card.
The size and reach of the Quik Rent branded network will also allow the creation of new financial products for FRL, as well as opportunities to cross-sell products to customers.
The Quik Rent network will be a new format to those previously used in the Australian financial sector - being entirely an electronic web-based platform. A platform of this nature allows Quik Rent to provide timeless approvals, instant subscription to products and flow-on e-commerce opportunities.
FRL Managing Director Barry Samuels said he believed the acquisition of the stake in Quik Rent provides the company with access to a significant national financial services distribution and marketing network.
"For Financial Resources Limited the Quik Rent agreement allows us to expand our customer base significantly, with this agreement acting as the platform for the introduction of a range of branded financial products and on-going cross selling opportunities," Mr Samuels said.
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"Quik Rent branded financial products such as general and credit card insurance will be coming to market very soon, with a number of retail and commercial organisations already seeing the benefit these products will have for them and their customers.
"For FRL this is a key milestone that will signify a period of exciting growth."
it these products will have for them and their customers.
"For FRL this is a key milestone that will signify a period of exciting growth."
