TIDMOPM
RNS Number : 0657Y
1PM PLC
27 August 2009
1pm plc ("1pm" or "the Company")
PRELIMINARY RESULTS FOR THE YEAR TO 31 MAY 2009
1pm plc (AIM: OPM), the specialist provider of lease asset finance to the SME
sector, announces its preliminary results for the year to 31 May 2009.
Financial and operating highlight:
+----------+---------------+
| - | A |
| | revenue |
| | increase |
| | of 75% |
| | to |
| | GBP1.4 |
| | million |
| | (2008: |
| | GBP0.8 |
| | million). |
+----------+---------------+
| | |
+----------+---------------+
| - | Gross |
| | profit |
| | rose 8% |
| | to |
| | GBP574,000 |
| | (2008: |
| | GBP533,000). |
+----------+---------------+
| | |
+----------+---------------+
| - | Advantage |
| | taken of |
| | market |
| | conditions |
| | and the |
| | constraints |
| | on finance |
| | to smaller |
| | UK |
| | companies |
| | by |
| | increasing |
| | the loan |
| | portfolio |
| | by 57% to |
| | GBP7.2m |
| | (2008: |
| | GBP4.6m). |
+----------+---------------+
| | |
+----------+---------------+
| - | During |
| | the year |
| | successfully |
| | raised |
| | additional |
| | finance |
| | through two |
| | placings of |
| | new shares |
| | totalling |
| | GBP1,166,275 |
| | before |
| | expenses. |
+----------+---------------+
| | |
+----------+---------------+
| - | Ron |
| | Russell, |
| | an |
| | investor |
| | in the |
| | Company |
| | since |
| | flotation, |
| | appointed |
| | to the |
| | board of |
| | 1pm as |
| | non-executive |
| | director. |
+----------+---------------+
+-----------------------------------------+-----------------------------------------+
| Contacts: | |
+-----------------------------------------+-----------------------------------------+
| | |
+-----------------------------------------+-----------------------------------------+
| 1pm plc | www.1pm.co.uk |
+-----------------------------------------+-----------------------------------------+
| Mike Johnson, Chairman | +44 (0) 844 967 0944 |
+-----------------------------------------+-----------------------------------------+
| | |
+-----------------------------------------+-----------------------------------------+
| WH Ireland Limited | www.wh-ireland.co.uk |
+-----------------------------------------+-----------------------------------------+
| Mike Coe / Marc Davies | +44 (0) 117 945 3470 |
+-----------------------------------------+-----------------------------------------+
THE CHAIRMAN'S STATEMENT
I am pleased to report the results for the year ended 31st May 2009. Despite the
generally depressed economic environment it has been another year of progress
for the company.
Operations and financing
The current challenging economic environment has provided 1pm with an attractive
opportunity to build market share as the availability of finance remains
constrained for smaller U.K companies. As a result of this general squeeze on
credit, 1pm has managed to increase its portfolio from GBP4.6 million as at 31st
May 2008 to GBP7.2 million as at 31st May 2009.
During August 2008 1pm successfully completed a secondary placing raising
GBP656,500 before costs which was followed by a further placing completed during
May 2009 raising GBP509,775 before costs. The proceeds have increased the
Company's funding facilities enabling it to expand its market share, build the
client base and accelerate growth. In addition to increasing its working capital
via the placings 1pm has secured GBP250,000 of debt finance through a loan
facility, which has assisted the Company's ability to negotiate further funding
lines as appropriate and as such enabled us to post a small profit for the
period to 31st May 2009.
Notwithstanding the above the Board considered it prudent to implement a
detailed analysis of the business to confirm that it was operationally efficient
and to help ensure that no opportunities were over looked. As a result of the
review the Board decided to implement increases to the Company's pricing
structure which are anticipated to contribute positively to the Company's profit
and loss account. In addition our underwriting criteria is constantly under
review to ensure we are up to date with all prevailing and changing
circumstances and to avoid over exposure in any one area.
Our main target remains the SME sector. 1pm focuses on good quality well founded
start up business that, in the Directors opinion, have the potential to become
established stable medium sized businesses with the right type of asset finance.
Whilst our sector remains competitive experience shows that in times of
tightening credit, companies turn to independent flexible asset financiers such
as 1pm and consequently margins tend to increase. In addition we are now seeing
the benefits of nurturing our relationships with our key introducers resulting
in a significant increase in quality referrals and therefore a more stable
client base.
The defensive manoeuvre of positioning the Company to insulate it from the
effects of the "credit crunch" has enabled the Company to take positive
advantage of the strength of its earlier restructuring. For example, we have
been able to effectively manage the sudden and unforeseen exit of one of our
funders without sustaining any potential downside.
Operations Director Maria Hampton has assumed day-to-day control of delinquency
management bringing to bear her extensive knowledge and expertise in this vital
area. Through the tight credit control procedures already in place we have been
able to work with and assist our clients who have a genuine payment problem and
recover debts from those who are just looking for a reason not to pay.
In summary the company continues to focus on disciplined underwriting supported
by a robust collection policy through these uncertain times.
Results
Group turnover in the year to 31st May 2009 increased by 75% from the level of
the previous year to GBP1.4 million (2008 GBP0.8 million)
Gross profit rose by 8% to GBP574,000 (2008 GBP533,000) despite provisions of
GBP82,000 provided to reflect the current economic environment.
Net Assets have increased to GBP2.6m (2008: GBP1.5m).
Staff
Our staff remains our greatest asset and we believe our dedicated team is
comparable with the best in the industry. We would like to thank them for their
day-to-day contribution, which remains unsurpassed in driving the Company
forward.
In June Mr. Ron Russell an investor in the company since floatation joined the
board. My colleagues and I are very much looking forward to Ron's input over the
coming year.
The board has appointed WH Ireland Ltd as its nominated advisor and broker with
immediate effect.
Outlook
The Board believes the key to success going forward is sustainable growth with
the catalyst being the new source of funding secured via the placing together
with the loan facility which will enable the Board to scale the business thus
taking advantage of the tight credit environment.
Finally the Directors remain confident in 1pm's business in terms of strategy
and performance. Helped by the new capital raise during May the current year has
commenced in line with management expectations and the Directors are confident
that it will deliver further progress.
M.R.Johnson
Chairman
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2009
+------------------------------------------+------------+------------+------------+
| | Note | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | (restated) |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| REVENUE | | 1,365,172 | 805,378 |
+------------------------------------------+------------+------------+------------+
| Cost of sales | | (791,399) | (272,018) |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| GROSS PROFIT | | 573,773 | 533,360 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Administrative expenses | | (556,145) | (470,483) |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| OPERATING PROFIT | 2 | 17,628 | 62,877 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Finance income | | 63 | 2,602 |
+------------------------------------------+------------+------------+------------+
| Finance costs | | (14,606) | (8,795) |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| PROFIT BEFORE INCOME TAX | | 3,085 | 56,684 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Income tax expense | 4 | - | - |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| PROFIT FOR THE YEAR | | 3,085 | 56,684 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Attributable to equity holders of the | | 3,085 | 56,684 |
| company | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Profit per share attributable to the | | | |
| equity | | | |
+------------------------------------------+------------+------------+------------+
| holders of the company during the year | | | |
+------------------------------------------+------------+------------+------------+
| - basic and diluted | 5 | | 0.0176p |
| | | 0.000436p | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
All of the activities of the company are classed as continuing.
The company has no recognised gains or losses other than the results for the
year as set out above.
The company has elected to take exemption under section 408 of the Companies Act
2006 to not present the parent company profit and loss account.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 MAY 2009
+------------------------------------------+------------+------------+------------+
| | Note | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | (restated) |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| ASSETS | | | |
+------------------------------------------+------------+------------+------------+
| NON CURRENT ASSETS | | | |
+------------------------------------------+------------+------------+------------+
| Deferred income taxes | | 78,861 | 78,861 |
+------------------------------------------+------------+------------+------------+
| Property, plant and equipment | | 54,651 | 66,091 |
+------------------------------------------+------------+------------+------------+
| | | 133,512 | 144,952 |
+------------------------------------------+------------+------------+------------+
| CURRENT ASSETS | | | |
+------------------------------------------+------------+------------+------------+
| Trade and other receivables | 6 | 7,127,592 | 4,422,625 |
+------------------------------------------+------------+------------+------------+
| Cash and cash equivalents | | 1,655 | 25,097 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| TOTAL CURRENT ASSETS | | 7,129,247 | 4,447,722 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| TOTAL ASSETS | | 7,262,759 | 4,592,674 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| EQUITY | | | |
+------------------------------------------+------------+------------+------------+
| Share capital | 9 | 1,035,639 | 298,773 |
+------------------------------------------+------------+------------+------------+
| Share premium account | 9 | 1,640,867 | 1,303,112 |
+------------------------------------------+------------+------------+------------+
| Retained earnings | 10 | ( 88,623) | ( 91,708) |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| TOTAL EQUITY | | 2,587,883 | 1,510,177 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| LIABILITIES | | | |
+------------------------------------------+------------+------------+------------+
| CURRENT LIABILITIES | | | |
+------------------------------------------+------------+------------+------------+
| Trade and other payables | 7 | 2,428,419 | 1,637,891 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| NON CURRENT LIABILITIES | | | |
+------------------------------------------+------------+------------+------------+
| Trade and other payables | 8 | 2,246,457 | 1,444,606 |
+------------------------------------------+------------+------------+------------+
| Deferred tax liabilities | | - | - |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| TOTAL LIABILITIES | | 4,674,876 | 3,082,497 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| TOTAL EQUITY AND LIABILITIES | | 7,262,759 | 4,592,674 |
+------------------------------------------+------------+------------+------------+
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2009
+------------------------------------------+------------+------------+------------+
| | Note | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | (restated) |
+------------------------------------------+------------+------------+------------+
| CASH FLOWS FROM OPERATING ACTIVITIES | | | |
+------------------------------------------+------------+------------+------------+
| Consumed by operations | 11 | (687,209) | (808,756) |
+------------------------------------------+------------+------------+------------+
| Taxation | | ______ | (19,464) |
| | | - | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Net cash generated from operating | | (687,209) | (828,220) |
| activities | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| CASH FLOWS FROM INVESTING ACTIVITIES | | | |
+------------------------------------------+------------+------------+------------+
| Interest received | | 63 | 2,602 |
+------------------------------------------+------------+------------+------------+
| Purchase of property, plant and | | (16,255) | (42,948) |
| equipment | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Net cash generated from investing | | (16,192) | (40,346) |
| activities | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| CASH FLOWS FROM FINANCING ACTIVITIES | | | |
+------------------------------------------+------------+------------+------------+
| Dividends paid | | - | - |
+------------------------------------------+------------+------------+------------+
| Interest paid | | (14,606) | (8,795) |
+------------------------------------------+------------+------------+------------+
| Issue of shares net of cost | | 565,688 | 630,591 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Net cash generated from financing | | 551,082 | 621,796 |
| activities | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| NET INCREASE IN CASH AND CASH | | | |
+------------------------------------------+------------+------------+------------+
| EQUIVALENTS | | (152,319) | (246,770) |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| CASH AND CASH EQUIVALENTS AT THE | | | |
+------------------------------------------+------------+------------+------------+
| BEGINNING OF THE YEAR | 11 | (347,397) | (100,627) |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| CASH AND CASH EQUIVALENTS AT THE | | | |
+------------------------------------------+------------+------------+------------+
| END OF THE YEAR | 11 | (499,716) | (347,397) |
+------------------------------------------+------------+------------+------------+
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 31 MAY 2009
1.ACCOUNTING POLICIES
The financial information set out in this announcement does not constitute the
company's statutory accounts.
Statutory accounts for the year ended 31 May 2009 will be delivered to
shareholders and to the Registrar of Companies in due course and will be
available on the Company's website (www.1pm.co.uk). The report of the auditors
on the statutory accounts for the year ended 31 May 2009 was unqualified and did
not contain a reference to any matters which the auditor drew attention by way
of emphasis without qualifying the report and did not contain a statement under
section 498 (2) or section 498 (3) of the Companies Act 2006.
Basis of preparation
The financial statements have been prepared in accordance with IFRS and with the
Companies Act 2006.
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries) made up to
May each year. Control is achieved where the Company has the power to govern the
financial and operating policies of an entity so as to obtain benefit from its
activities.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Leased assets and turnover
Assets leased to customers on finance leases are recognised in the Balance Sheet
at the amount of the Company's net investment in the lease. Finance lease income
is allocated to accounting periods so as to reflect a constant periodic rate of
return on the Company's net investment outstanding in respect of the leases.
All turnover arose within the UK.
2.OPERATING PROFIT
Operating profit stated after charging:
+------------------------------------------+------------+------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Depreciation of property, plant and | | 27,695 | 19,369 |
| equipment | | | |
+------------------------------------------+------------+------------+------------+
| Auditors remuneration (see below) | | 11,850 | 11,000 |
+------------------------------------------+------------+------------+------------+
| Staff costs | | 336,913 | 295,990 |
+------------------------------------------+------------+------------+------------+
| Operating lease costs: | | | |
+------------------------------------------+------------+------------+------------+
| Rent | | 28,703 | 15,218 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
Auditors' remuneration:
+------------------------------------------+------------+------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| Audit services | | | |
+------------------------------------------+------------+------------+------------+
| Statutory audit | | 8,500 | 7,750 |
+------------------------------------------+------------+------------+------------+
| Non audit services | | | |
+------------------------------------------+------------+------------+------------+
| Other services pursuant to legislation | | 3,350 | 3,250 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Total | | 11,850 | 11,000 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
3.DIRECTORS' REMUNERATION
The directors' aggregate emoluments in respect of qualifying services were:
+------------------------------------------+------------+------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Aggregate emoluments | | 223,404 | 158,253 |
+------------------------------------------+------------+------------+------------+
| Value of company pension contributions | | | |
| to money | | | |
+------------------------------------------+------------+------------+------------+
| purchase scheme | | 1,050 | 8,867 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | | 224,454 | 167,120 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
The number of directors who accrued benefits under company pension scheme was as
follows:
+------------------------------------------+------------+------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | No | No |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Money purchase schemes | | 1 | 2 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
4.INCOME TAX EXPENSE
+------------------------------------------+------------+------------+------------+
| (a) | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| Current tax | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| UK corporation tax charge | | - | - |
+------------------------------------------+------------+------------+------------+
| Deferred tax (note 12) | | - | - |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Current tax | | - | - |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
Corporation tax is calculated at 21% (2008: 20%) of the estimated assessable
profit for the year.
The charge for the year can be reconciled to the Income Statement as follows:
+----------------------------------------------+--------+------------+------------+
| (b) | | 2009 | 2008 |
+----------------------------------------------+--------+------------+------------+
| | | GBP | GBP |
+----------------------------------------------+--------+------------+------------+
| Profit on ordinary activities before tax | | 3,085 | 56,684 |
+----------------------------------------------+--------+------------+------------+
| | | | |
+----------------------------------------------+--------+------------+------------+
| Profit on ordinary activities by rate of tax | | 648 | 11,337 |
+----------------------------------------------+--------+------------+------------+
| Capital allowances for the period in excess | | 585 | (2,362) |
| of depreciation | | | |
+----------------------------------------------+--------+------------+------------+
| Utilisation of loss relief | | (1,220) | (18,468) |
+----------------------------------------------+--------+------------+------------+
| Underprovision of current tax | | (13) | (525) |
+----------------------------------------------+--------+------------+------------+
| Unexplained difference | | - | 4 |
+----------------------------------------------+--------+------------+------------+
| Other short term timing differences | | - | 10,014 |
+----------------------------------------------+--------+------------+------------+
| | | | |
+----------------------------------------------+--------+------------+------------+
| Total current tax (note 5(a)) | | - | - |
+----------------------------------------------+--------+------------+------------+
| | | | |
+----------------------------------------------+--------+------------+------------+
5.EARNINGS PER SHARE
The calculations of earning per share are calculated by dividing the earnings
attributable to ordinary shares by the weighted average number of shares in
issue during the year. For diluted earnings per share, the weighted average
number of ordinary shares is adjusted to assume conversion of all dilutive
potential ordinary shares.
+------------------------------------------+------------+-------------+-------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+-------------+-------------+
| | | GBP | GBP |
+------------------------------------------+------------+-------------+-------------+
| Profit attributable to equity | | 3,085 | 56,684 |
| shareholders (restated) | | | |
+------------------------------------------+------------+-------------+-------------+
| | | | |
+------------------------------------------+------------+-------------+-------------+
| Weighted average number of shares | | 707,144,061 | 322,667,529 |
+------------------------------------------+------------+-------------+-------------+
| | | | |
+------------------------------------------+------------+-------------+-------------+
| Basic & Diluted Earnings per Share | | | 0.0176p |
| (restated) | | 0.000436p | |
+------------------------------------------+------------+-------------+-------------+
| | | | |
+------------------------------------------+------------+-------------+-------------+
6.TRADE AND OTHER RECEIVABLES (Group only)
+------------------------------------------+------------+------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Trade receivables | | 6,208,032 | 3,990,711 |
+------------------------------------------+------------+------------+------------+
| Unpaid share capital | | 508,933 | - |
+------------------------------------------+------------+------------+------------+
| VAT recoverable | | - | 174,761 |
+------------------------------------------+------------+------------+------------+
| Other receivables | | 375,939 | 210,151 |
+------------------------------------------+------------+------------+------------+
| Prepayments and accrued income | | 18,241 | 31,080 |
+------------------------------------------+------------+------------+------------+
| Corporation tax | | 16,447 | 15,922 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | | 7,127,592 | 4,422,625 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
Trade receivables wholly represent finance lease debtors.
+------------------------------------------+------------+--------------+--------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+--------------+--------------+
| Gross receivables from finance leases | | GBP | GBP |
+------------------------------------------+------------+--------------+--------------+
| No later than 1 year | | 2,997,621 | 2,569,267 |
+------------------------------------------+------------+--------------+--------------+
| Later than 1 year and no later then 5 | | 5,079,270 | 2,610,991 |
| years | | | |
+------------------------------------------+------------+--------------+--------------+
| Later then 5 years | | - | - |
+------------------------------------------+------------+--------------+--------------+
| | | | |
+------------------------------------------+------------+--------------+--------------+
| Unearned future finance income on | | (1,868,859) | (1,189,547) |
| finance lease | | | |
+------------------------------------------+------------+--------------+--------------+
| Net investment in finance leases | | 6,208,032 | 3,990,711 |
+------------------------------------------+------------+--------------+--------------+
| The net investment in finance leases may | | | |
| be analysed as follows: | | | |
+------------------------------------------+------------+--------------+--------------+
| No later than 1 year | | 2,342,881 | 1,856,871 |
+------------------------------------------+------------+--------------+--------------+
| Later than 1 year and no later then 5 | | 3,865,151 | 2,133,840 |
| years | | | |
+------------------------------------------+------------+--------------+--------------+
| Later then 5 years | | - | - |
+------------------------------------------+------------+--------------+--------------+
| | | | |
+------------------------------------------+------------+--------------+--------------+
The cost of assets acquired for the purpose of letting under finance leases were
as follows; 2009: GBP4,157,196 (2008: GBP2,999,524).
Included within Trade receivables are the following receivables that are past
due but not impaired as they are considered recoverable: less than three months
old GBP54,127 (2008: GBP50,229), more than three months old GBP90,740 (2008:
GBP13,149), all amounts are secured on the asset to which they relate. No other
assets are past due or impaired.
7.CURRENT LIABILITIES (Group only)
+------------------------------------------+------------+------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Bank loans and overdrafts | | 501,371 | 372,494 |
+------------------------------------------+------------+------------+------------+
| Trade payables | | 1,804,196 | 1,138,429 |
+------------------------------------------+------------+------------+------------+
| VAT payable | | 13,279 | - |
+------------------------------------------+------------+------------+------------+
| Other taxation and social securities | | 4,676 | 5,270 |
+------------------------------------------+------------+------------+------------+
| Other payables | | 70,610 | 83,687 |
+------------------------------------------+------------+------------+------------+
| Accruals and deferred income | | 34,287 | 38,011 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | | 2,428,419 | 1,637,891 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
Trade payables wholly represent funding creditors, which are secured on the
value of finance leases written during the financial year.
The trade payables figure is made up of numerous funding blocks that are repaid
by monthly instalments. The length of the repayment term varies from 29 to 60
months and interest rates from 7.9% to 12%.
The company's banking facilities are secured by a mortgage debenture, dated 7
December 2007 incorporating a fixed and floating charge over all current and
future assets of the company.
8.NON CURRENT LIABILITIES (Group only)
+------------------------------------------+------------+------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Bank loans and overdrafts | | - | - |
+------------------------------------------+------------+------------+------------+
| Trade payables | | 2,246,457 | 1,444,606 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | | 2,246,457 | 1,444,606 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
Trade creditors are secured as noted above, with the same repayment and interest
rates.
Maturity analysis
The following analysis shows the contractual undiscounted cashflows (which
differ from the discounted cashflow totals shown in Current and Non current
liabilities above).
+------------------------------------------+------------+------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| Trade payables: | | | |
+------------------------------------------+------------+------------+------------+
| On demand or within one year | | 2,088,513 | 1,353,129 |
+------------------------------------------+------------+------------+------------+
| More than one year but less than two | | 1,554,697 | 994,458 |
| years | | | |
+------------------------------------------+------------+------------+------------+
| More than two years but less than five | | 881,775 | 568,027 |
| years | | | |
+------------------------------------------+------------+------------+------------+
| Total | | 4,524,985 | 2,915,614 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
9.SHARE CAPITAL AND PREMIUM (Group & Company)
+------------------------------+---------------+------------+------------+------------+
| | No of | Ordinary | Share | Total |
| | Shares | Shares | Premium | |
+------------------------------+---------------+------------+------------+------------+
| | | GBP | GBP | GBP |
+------------------------------+---------------+------------+------------+------------+
| At 1 June 2008 | 438,212,229 | 298,773 | 1,303,112 | 1,601,885 |
+------------------------------+---------------+------------+------------+------------+
| Movement | 1,080,766,857 | 736,866 | 337,755 | 1,074,621 |
+------------------------------+---------------+------------+------------+------------+
| | | | | |
+------------------------------+---------------+------------+------------+------------+
| At 31 May 2009 | 1,518,979,086 | 1,035,639 | 1,640,867 | 2,676,506 |
+------------------------------+---------------+------------+------------+------------+
| | | | | |
+------------------------------+---------------+------------+------------+------------+
Authorised:
+------------------------------+------------+---------------+------------+-------------+
| | | No of | Nominal | Total |
| | | Shares | Value | |
+------------------------------+------------+---------------+------------+-------------+
| | | | GBP | GBP |
+------------------------------+------------+---------------+------------+-------------+
| Ordinary Shares | | 1,613,352,889 | 0.0006818 | 1,099,984 |
+------------------------------+------------+---------------+------------+-------------+
| | | | | |
+------------------------------+------------+---------------+------------+-------------+
Allotted and fully paid:
+------------------------------+------------+-------------+------------+-----------+
| | | No of | Nominal | Total |
| | | Shares | Value | |
+------------------------------+------------+-------------+------------+-----------+
| | | | GBP | GBP |
+------------------------------+------------+-------------+------------+-----------+
| Ordinary Shares | | 772,522,836 | 0.0006818 | 526,706 |
+------------------------------+------------+-------------+------------+-----------+
| | | | | |
+------------------------------+------------+-------------+------------+-----------+
Allotted and unpaid:
+------------------------------+------------+-------------+------------+-----------+
| | | No of | Nominal | Total |
| | | Shares | Value | |
+------------------------------+------------+-------------+------------+-----------+
| | | | GBP | GBP |
+------------------------------+------------+-------------+------------+-----------+
| Ordinary Shares | | 746,456,250 | 0.0006818 | 508,933 |
+------------------------------+------------+-------------+------------+-----------+
| | | | | |
+------------------------------+------------+-------------+------------+-----------+
Issue of shares
On 14 August 2008, the company issued 328,250,000 ordinary shares at a price of
GBP0.002 per share, on 27 March 2009 the company issued 6,060,607 ordinary
shares at a price of GBP0.00165 per share, and on 29 May 2009 the company issued
746,456,250 ordinary shares at GBP0.0007 per share.
The funds raised were used in 1pm (UK) Limited to finance continuing operations.
10.RETAINED EARNINGS
+------------------------------------------+------------+------------+------------+
| | | Group | Company |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| At 1 June 2008 (restated) | | (91,708) | - |
+------------------------------------------+------------+------------+------------+
| Profit for the year | | 3,085 | - |
+------------------------------------------+------------+------------+------------+
| Equity dividends | | - | - |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| At 31 May 2009 | | (88,623) | - |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
11.NOTES TO THE STATEMENT OF CASH FLOW (Group only)
CASH FLOWS FROM OPERATING ACTIVITIES
+------------------------------------------+------------+-------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+-------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| Profit before income tax for the year | | 17,628 | 62,877 |
+------------------------------------------+------------+-------------+------------+
| Adjustment for: | | | |
+------------------------------------------+------------+-------------+------------+
| Depreciation | | 27,695 | 19,369 |
+------------------------------------------+------------+-------------+------------+
| Trade and other receivables | | (2,196,034) | (900,292) |
+------------------------------------------+------------+-------------+------------+
| Trade and other payables | | 1,463,502 | 9,290 |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| Cash generated from operations | | (687,209) | (808,756) |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
CASH AND CASH EQUIVALENTS
+------------------------------------------+------------+-------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+-------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
| Cash at bank and in hand | | 1,655 | 25,097 |
+------------------------------------------+------------+-------------+------------+
| Bank loans and overdrafts | | (501,371) | (372,494) |
+------------------------------------------+------------+-------------+------------+
| Cash and cash equivalents | | (499,716) | (347,397) |
+------------------------------------------+------------+-------------+------------+
| | | | |
+------------------------------------------+------------+-------------+------------+
12.TRANSACTIONS WITH DIRECTORS
A director Mr M R Johnson has given personal guarantees to: Svenska
Handelsbanken plc of GBP350,000, Hitachi Capital Limited to of GBP1,000,000,
Venture Finance up to a maximum of GBP500,000 and Kingston Asset Finance Limited
to the outstanding debt at the time of the agreement being terminated.
During the year the following directors invoiced the company for services
rendered:
P Connell invoiced the company for GBP12,000
M R Johnson invoiced the company for GBP93,197
R Channon invoiced the company for GBP15,000
H Walker invoiced the company for GBP22,294
At the year end, included within Current liabilities are; GBP2,700 due to H
Walker and GBP7,000 due to M R Johnson.
13.SUBSEQUENT EVENTS
Since the year end the company received a loan in the sum of GBP250,000 from UK
Private Healthcare Limited, the companies are connected by virtue of Mr R
Russell, a director of both companies.
14.PRIOR YEAR ADJUSTMENT
The company has changed its accounting policy regarding the method of interest
recognition on leased assets and funding creditors. In previous years the
company has recognised 5% on the inception of a leased asset or funding
creditor, this policy has now been changed to remove the initial recognition.
The directors considered that the new policy was more appropriate to the
requirements of IAS 17. There was no effect on the income tax charge. The change
in accounting policy has had the following effect on the results for the year,
accordingly the comparatives have been restated.
+------------------------------------------+------------+------------+------------+
| | | 2009 | 2008 |
+------------------------------------------+------------+------------+------------+
| | | GBP | GBP |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Decrease in turnover | | 36,606 | 43,099 |
+------------------------------------------+------------+------------+------------+
| Decrease in cost of sales | | 16,588 | 19,915 |
+------------------------------------------+------------+------------+------------+
| Decrease in profit for the year | | 20,018 | 23,184 |
+------------------------------------------+------------+------------+------------+
| Decrease in retained reserves brought | | 31,107 | 7,924 |
| forward (cumulative) | | | |
+------------------------------------------+------------+------------+------------+
| Decrease in earnings per share (basic | | 0.00283p | 0.0072p |
| and diluted) | | | |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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