TIME Time Finance Plc

 
TIDMOPM 
 
1pm plc 
 
                            ("1pm" or the "Company") 
 
                                 Trading Update 
 
12 March 2009 
 
Since  announcing its half-year results to 30 November 2008 on 15  January,  the 
Company  has  been  notified  that  one of  its  block  discounting  funders  is 
withdrawing from the market and another funder is reducing facilities available, 
to  1pm,  based on a strategic review of their own market position.   This  will 
reduce  available funding lines to 1pm by 15%.  The Company has also experienced 
an  increase  in  the number of its customers requesting payment  variations  in 
relation  to their finance agreements with a consequent impact on cash flow  and 
the  timing  of prospective profits. As a result levels of bad debt provisioning 
have also been reviewed and prudently increased. 
 
As  a  consequence  of these factors the Company has commenced discussions  with 
alternative funding sources, however in the short term both new business  growth 
and financial performance will be materially below current market expectations. 
 
The  Company also announces it has agreed to issue 6,060,607 new ordinary shares 
of  0.06818p  each  ("Ordinary Shares") at a price of 0.165 pence  per  Ordinary 
Share  and pay GBP20,000 in cash to InvestNorthWest Limited in settlement of  fees 
relating  to  previous fundraisings.  It is anticipated that dealings  in  these 
Ordinary Shares will commence on 27 March 2009. 
 
Mike Johnson, Chairman stated: 
 
"Over the last few months we have taken steps to reduce the average size of  our 
loans. We have also implemented a wider review of our cost base which is already 
starting  to  yield  tangible cost savings for the  group.   Whilst  short  term 
business  growth  will be lower, we are confident that our strong  relationships 
within  the  marketplace will enable us to develop new funding sources  to  take 
advantage of future opportunities." 
 
Enquiries 
 
Mike Johnson 
Chairman 1pm plc                   08707 397 397 
 
Ian Callaway 
SVS Securities plc                 020 7638 5600 
 
Emily Morgan                       01275 871717 
Nick Harriss                       020 7489 4500 
Blomfield Corporate Finance 
 
-END- 
 

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