TIDMOPM
RNS Number : 3645R
1PM PLC
20 August 2010
1PM PLC
(AIM: OPM)
Preliminary Results For The Year To 31 May 2010
1pm plc ("1pm" and "the Company") the AIM quoted independent provider of asset
finance facilities to the SME sector announces its results for the year ended 31
May 2010.
CHAIRMAN'S STATEMENT
I am pleased to report the results for the year ended 31 May 2010. Despite the
continuing difficult economic environment the Company has put in a resilient
performance assisted by our business model and diverse portfolio. Revenue has
been maintained although the overall performance for the year has been affected
by a significantly higher level of bad debt write-offs. Pleasingly the second
half has seen an increase in the level of new leases being written and this
improvement has continued into the current year.
Results
Group turnover in the year to 31 May 2010 was 2% lower at GBP1.331 million
(2009: GBP1.365 million).
Bad debt write-offs during the year were GBP349,843 (2009: GBP82,200).
Operating profit before bad debt write-off and provisioning was GBP16,500 (2009:
GBP99,828).
The loss before taxation for the year was GBP402,416 (2009: GBP3,085 profit).
Levels of new business in the second half of the year were an improvement on the
first half. The value of new business written in the second half of the year
was GBP1,519,250 compared with GBP975,601 in the first half. As at 30 May 2010
the total lease book amounted to GBP6.55 million (2009: GBP7.13 million, 30
November 2009: GBP6.42 million).
Operating review
During the financial year we made significant operational changes. These
include a tightening of our underwriting criteria, a prudent change in our
provisioning policy and a drive to enhance our relationships with the broker
network. A number of these changes have been implemented following a review of
the trading environment and a desire to reduce operational risk.
The level of bad debt write-offs during the year has been disappointing. These
have largely resulted from customers bankruptcies for which it is the Company's
policy to write-off immediately any amounts due as bad debt. The majority of
the bad debts relate to leases that were relatively mature and large and, more
significantly, pre dated the company's decision during the year to reduce its
average deal size. In light of continuing difficult economic environment we
have implemented a new provisioning system that should more accurately link
provisions with the lease portfolio.
The positive impact of our meetings with brokers has already been seen in the
second half through the increase in new business and a much more efficient
conversion rate of proposals submitted. Our willingness and ability to support
our brokers and customers through difficult times is significantly appreciated
in our designated marketplace and bodes well for the future relationships.
I remain proud of our performance in light of prevailing conditions in the wider
economy, which led to the exit from our market of a number of our competitors.
We believe we are well positioned to take advantage of the prevailing market
opportunities resulting from reduced competition without compromising our
standards.
Staff
During the year a number of operational changes were made to the structure of
the Board. Maria Hampton became Managing Director and Helen Walker became
Finance Director effective from 1 February 2010. In addition, Rod Channon, the
previous Finance Director, became a non-executive director.
I want to thank the dedicated staff of 1pm who have demonstrated extraordinary
commitment. The hard work of our highly trained and experienced staff has been
a major factor in our resilient performance.
Financing
In March this year we announced a successful placing raising GBP1.15 million,
before expenses, which significantly strengthened our balance sheet. The
proceeds of the placing have allowed us to accelerate the levels of new business
written. In addition, the extra capital has reduced the gearing on the lease
portfolio by increasing the proportion of Company funding of new leases and
thereby increase the margin on lending.
Outlook
I am pleased to report that the new financial year has started positively helped
by the March fundraising. In the first two months of trading we have written
levels of new business in excess of budget. This is reflected in the loan book
which as at 31 July 2010 has increased to GBP7.4m. The challenge remains
accessing funds to support portfolio growth and to that extent we are in
constructive discussions with a number of funders.
Turning to the economic outlook there are signs that the asset finance market is
showing a return to growth. We are cautiously optimistic having emerged in
robust shape from the last two years and believe we are well positioned to take
advantage of the emerging opportunities in our designated market sector.
+-----------------------------------+-----------------------------------+
| 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 |
+-----------------------------------+-----------------------------------+
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2010
+------------------------------------+---------+---------------+-------------+
| | Note | 2010 | 2009 |
+------------------------------------+---------+---------------+-------------+
| | | GBP | GBP |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| REVENUE | | 1,331,922 | 1,365,172 |
+------------------------------------+---------+---------------+-------------+
| Cost of sales | | (1,184,547) | (791,399) |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| GROSS PROFIT | | 147,375 | 573,773 |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| Administrative expenses | | (516,978) | (556,145) |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| OPERATING (LOSS) / PROFIT | 2 | (369,603) | 17,628 |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| Finance income | | 303 | 63 |
+------------------------------------+---------+---------------+-------------+
| Finance costs | | (33,116) | (14,606) |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| (LOSS) / PROFIT BEFORE TAX | | (402,416) | 3,085 |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| Income tax expense | 5 | 64,656 | |
| | | | - |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| (LOSS) / PROFIT AND COMPREHENSIVE | | (337,760) | 3,085 |
| INCOME FOR THE YEAR | | | |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| Attributable to equity holders of | | (337,760) | 3,085 |
| the company | | | |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| Profit per share attributable to | | | |
| the equity | | | |
+------------------------------------+---------+---------------+-------------+
| holders of the company during the | | | |
| year | | | |
+------------------------------------+---------+---------------+-------------+
| - basic and diluted | 6 | (0.017678)p | |
| | | | 0.000436p |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
| | | | |
+------------------------------------+---------+---------------+-------------+
All of the activities of the company are classed as continuing.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 MAY 2010
+------------------------------------+---------+-------------+-------------+
| | Notes | 2010 | 2009 |
+------------------------------------+---------+-------------+-------------+
| | | GBP | GBP |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| ASSETS | | | |
+------------------------------------+---------+-------------+-------------+
| NON CURRENT ASSETS | | | |
+------------------------------------+---------+-------------+-------------+
| Deferred income taxes | | 159,964 | 78,861 |
+------------------------------------+---------+-------------+-------------+
| Property, plant and equipment | | 36,478 | 54,651 |
+------------------------------------+---------+-------------+-------------+
| | | 196,442 | 133,512 |
+------------------------------------+---------+-------------+-------------+
| CURRENT ASSETS | | | |
+------------------------------------+---------+-------------+-------------+
| Trade and other receivables | 7 | 6,548,773 | 7,127,592 |
+------------------------------------+---------+-------------+-------------+
| Cash and cash equivalents | | 305,211 | 1,783 |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| TOTAL CURRENT ASSETS | | 6,853,984 | 7,129,375 |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| TOTAL ASSETS | | 7,050,426 | 7,262,887 |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| EQUITY | | | |
+------------------------------------+---------+-------------+-------------+
| Share capital | 10 | 2,153,791 | 1,035,639 |
+------------------------------------+---------+-------------+-------------+
| Share premium account | 10 | 1,565,035 | 1,640,867 |
+------------------------------------+---------+-------------+-------------+
| Retained earnings | 11 | (426,383) | ( 88,623) |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| TOTAL EQUITY | | 3,292,443 | 2,587,883 |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| LIABILITIES | | | |
+------------------------------------+---------+-------------+-------------+
| CURRENT LIABILITIES | | | |
+------------------------------------+---------+-------------+-------------+
| Trade and other payables | 8 | 1,997,834 | 2,428,547 |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| NON CURRENT LIABILITIES | | | |
+------------------------------------+---------+-------------+-------------+
| Trade and other payables | 9 | 1,760,149 | 2,246,457 |
+------------------------------------+---------+-------------+-------------+
| Deferred tax liabilities | | | |
| | | - | - |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| TOTAL LIABILITIES | | 3,757,983 | 4,675,004 |
+------------------------------------+---------+-------------+-------------+
| | | | |
+------------------------------------+---------+-------------+-------------+
| TOTAL EQUITY AND LIABILITIES | | 7,050,426 | 7,262,887 |
+------------------------------------+---------+-------------+-------------+
CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED 31 MAY 2010
+------------------------------------+---------+-----------------+---------------+
| | Notes | 2010 | 2009 |
+------------------------------------+---------+-----------------+---------------+
| | | GBP | GBP |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| CASH FLOWS FROM OPERATING | | | |
| ACTIVITIES | | | |
+------------------------------------+---------+-----------------+---------------+
| Operating (Loss)/Profit before | | (369,603) | 17,628 |
| income tax for the year | | | |
+------------------------------------+---------+-----------------+---------------+
| Adjustment for: | | | |
+------------------------------------+---------+-----------------+---------------+
| Depreciation | | 24,232 | 27,695 |
+------------------------------------+---------+-----------------+---------------+
| Trade and other receivables | | 578,819 | (2,196,034) |
+------------------------------------+---------+-----------------+---------------+
| Trade and other payables | | (495,847) | 1,463,502 |
+------------------------------------+---------+-----------------+---------------+
| Consumed by operations | | (262,399) | (687,209) |
+------------------------------------+---------+-----------------+---------------+
| Taxation | | (16,447) | |
| | | | - |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| Net cash generated from operating | | (278,846) | (687,209) |
| activities | | | |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| CASH FLOWS FROM INVESTING | | | |
| ACTIVITIES | | | |
+------------------------------------+---------+-----------------+---------------+
| Interest received | | 303 | 63 |
+------------------------------------+---------+-----------------+---------------+
| Purchase of property, plant and | | (6,058) | (16,255) |
| equipment | | | |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| Net cash generated from investing | | (5,755) | (16,192) |
| activities | | | |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| CASH FLOWS FROM FINANCING | | | |
| ACTIVITIES | | | |
+------------------------------------+---------+-----------------+---------------+
| Interest paid | | (33,116) | (14,606) |
+------------------------------------+---------+-----------------+---------------+
| Issue of shares net of cost | | 1,042,320 | 565,688 |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| Net cash generated from financing | | 1,009,204 | 551,082 |
| activities | | | |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| NET INCREASE/(DECREASE) IN CASH | | | |
| AND CASH | | | |
+------------------------------------+---------+-----------------+---------------+
| EQUIVALENTS | | 724,603 | (152,319) |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| CASH AND CASH EQUIVALENTS AT THE | | | |
+------------------------------------+---------+-----------------+---------------+
| BEGINNING OF THE YEAR | | (499,716) | (347,397) |
+------------------------------------+---------+-----------------+---------------+
| | | | |
+------------------------------------+---------+-----------------+---------------+
| CASH AND CASH EQUIVALENTS AT THE | | | |
+------------------------------------+---------+-----------------+---------------+
| END OF THE YEAR | 12 | 224,887 | (499,716) |
+------------------------------------+---------+-----------------+---------------+
STATEMENTS OF CHANGES IN EQUITY
YEAR ENDED 31 MAY 2010
CONSOLIDATED GROUP
+--------------------------+------------+-----------+-------------+------------+
| | Share | Share | Retained | Total |
+--------------------------+------------+-----------+-------------+------------+
| | Capital | Premium | Earnings | Equity |
+--------------------------+------------+-----------+-------------+------------+
| | | | | |
+--------------------------+------------+-----------+-------------+------------+
| | GBP | GBP | GBP | GBP |
+--------------------------+------------+-----------+-------------+------------+
| | | | | |
+--------------------------+------------+-----------+-------------+------------+
| Balance at 1 June 2009 | 1,035,639 | 1,640,867 | (88,623) | 2,587,883 |
+--------------------------+------------+-----------+-------------+------------+
| | | | | |
+--------------------------+------------+-----------+-------------+------------+
| Loss for the year | | | (337,760) | (337,760) |
+--------------------------+------------+-----------+-------------+------------+
| Movement in share | 1,118,152 | (75,832) | | 1,042,320 |
| capital (note 14) | | | | |
+--------------------------+------------+-----------+-------------+------------+
| Other movements | | | | |
| | - | - | - | - |
+--------------------------+------------+-----------+-------------+------------+
| | | | | |
+--------------------------+------------+-----------+-------------+------------+
| Balance at 31 May 2010 | 2,153,791 | 1,565,035 | (426,383) | 3,292,443 |
+--------------------------+------------+-----------+-------------+------------+
| | | | | |
+--------------------------+------------+-----------+-------------+------------+
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 31 MAY 2010
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 2010 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 2010 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 as adopted
by the European Union and with the Companies Act 2006. The company is a UK
domiciled public limited company.
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 recognition
Assets leased to customers on finance leases are recognised in the
Statement of Financial Position 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.
Funding payables and cost of sales - interest
Finance received from funding providers is classified as payables in the
Statement of Financial Position. Payments to the funding providers contain a
capital element which reduces the creditor and an interest charge is debited to
the cost of sales using the "rule of 78". Due to the relatively short term of
the funding creditors the directors are satisfied that this method of
apportioning interest is not materially different to the effective interest
method.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risk and rewards of ownership to the lesee. All other
leases are classed as operating leases.
Assets held as finance leases are recognised as assets at their fair value or,
if lower, at the present value of the minimum lease payments, each determined at
the inception of the lease.
The corresponding liability to the lessor is included in the statement of
financial position as a finance lease obligation. Lease payments are apportioned
between finance charges and reduction of the lease obligation so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance
charges are charged directly against income.
Operating lease rentals are charged to the income statement on a straight-line
basis over the term of the lease.
2.OPERATING PROFIT
Operating profit stated after charging:
+---------------------------------+--------+---------+---------+
| | | 2010 | 2009 |
+---------------------------------+--------+---------+---------+
| | | GBP | GBP |
+---------------------------------+--------+---------+---------+
| | | | |
+---------------------------------+--------+---------+---------+
| Depreciation of property, plant | | 24,232 | 27,695 |
| and equipment | | | |
+---------------------------------+--------+---------+---------+
| Auditors remuneration (see | | 11,900 | 11,850 |
| below) | | | |
+---------------------------------+--------+---------+---------+
| Staff costs (see note 3) | | 334,174 | 336,913 |
+---------------------------------+--------+---------+---------+
| Operating lease costs: | | | |
+---------------------------------+--------+---------+---------+
| Rent | | | |
| | | 29,911 | 28,703 |
| | | | |
+---------------------------------+--------+---------+---------+
Auditors' remuneration:
+---------------------------------+--------+----------+----------+
| | | 2010 | 2009 |
+---------------------------------+--------+----------+----------+
| | | GBP | GBP |
+---------------------------------+--------+----------+----------+
| Audit services | | | |
+---------------------------------+--------+----------+----------+
| Statutory audit | | 8,500 | 8,500 |
+---------------------------------+--------+----------+----------+
| Non audit services | | | |
+---------------------------------+--------+----------+----------+
| Other services pursuant to | | 3,400 | 3,350 |
| legislation | | | |
+---------------------------------+--------+----------+----------+
| | | | |
+---------------------------------+--------+----------+----------+
| Total | | 11,900 | 11,850 |
+---------------------------------+--------+----------+----------+
3.STAFF COSTS
+---------------------------------+--------+------------+------------+
| | | 2010 | 2009 |
+---------------------------------+--------+------------+------------+
| | | GBP | GBP |
+---------------------------------+--------+------------+------------+
| | | | |
+---------------------------------+--------+------------+------------+
| Wages and salaries | | 317,786 | 319,479 |
+---------------------------------+--------+------------+------------+
| Social security costs | | 15,338 | 16,384 |
+---------------------------------+--------+------------+------------+
| Other pension costs | | 1,050 | 1,050 |
+---------------------------------+--------+------------+------------+
| | | | |
+---------------------------------+--------+------------+------------+
| | | 334,174 | 336,913 |
+---------------------------------+--------+------------+------------+
The average number of staff employed by the company during the financial period
amounted to:
+----------------------------------+--------+---------------+---------------+
| | | 2010 | 2009 |
+----------------------------------+--------+---------------+---------------+
| | | No | No |
+----------------------------------+--------+---------------+---------------+
| | | | |
+----------------------------------+--------+---------------+---------------+
| Administrative | | 6 | 6 |
+----------------------------------+--------+---------------+---------------+
| Management | | 1 | 1 |
+----------------------------------+--------+---------------+---------------+
| | | | |
+----------------------------------+--------+---------------+---------------+
| | | 7 | 7 |
+----------------------------------+--------+---------------+---------------+
4.DIRECTORS' REMUNERATION
The directors' aggregate emoluments in respect of qualifying services were:
+---------------------------------+--------+------------+------------+
| | | 2010 | 2009 |
+---------------------------------+--------+------------+------------+
| Aggregate Emoluments | | GBP | GBP |
+---------------------------------+--------+------------+------------+
| M Johnson | | 85,547 | 93,454 |
+---------------------------------+--------+------------+------------+
| M Hampton | | 70,000 | 72,181 |
+---------------------------------+--------+------------+------------+
| H Walker | | 37,240 | 22,294 |
+---------------------------------+--------+------------+------------+
| R Channon | | 17,816 | 15,000 |
+---------------------------------+--------+------------+------------+
| R Russell | | 10,776 | - |
+---------------------------------+--------+------------+------------+
| P O'Connell - resigned 29.05.09 | | 3,000 | 12,000 |
+---------------------------------+--------+------------+------------+
| | | 224,379 | 214,929 |
+---------------------------------+--------+------------+------------+
| Value of company pension | | | |
| contributions to money purchase | | | |
| scheme | | | |
+---------------------------------+--------+------------+------------+
| M Hampton | | 1,050 | 1,050 |
+---------------------------------+--------+------------+------------+
| | | | |
+---------------------------------+--------+------------+------------+
| | | 225,429 | 215,979 |
+---------------------------------+--------+------------+------------+
The number of directors who accrued benefits under company pension scheme was as
follows:
+------------------------------------+---------+---------+--------+
| | | 2010 | 2009 |
+------------------------------------+---------+---------+--------+
| | | No | No |
+------------------------------------+---------+---------+--------+
| | | | |
+------------------------------------+---------+---------+--------+
| Money purchase schemes | | 1 | 1 |
+------------------------------------+---------+---------+--------+
5.INCOME TAX EXPENSE
+------------------------------------+---------+-----------+--------+
| (a) | | 2010 | 2009 |
+------------------------------------+---------+-----------+--------+
| Current tax | | GBP | GBP |
+------------------------------------+---------+-----------+--------+
| | | | |
+------------------------------------+---------+-----------+--------+
| UK corporation tax charge | | - | - |
+------------------------------------+---------+-----------+--------+
| Movement in deferred taxation | | (81,103) | - |
+------------------------------------+---------+-----------+--------+
| Under provision in prior years | | 16,447 | |
| | | | - |
+------------------------------------+---------+-----------+--------+
| | | | |
+------------------------------------+---------+-----------+--------+
| Current tax | | (64,656) | |
| | | | - |
+------------------------------------+---------+-----------+--------+
Corporation tax is calculated at 21% (2009: 21%) of the estimated assessable
profit for the year.
The charge for the year can be reconciled to the Income Statement as follows:
+---------------------------------------+--+---------------+---------+
| (b) | | 2010 | 2009 |
+---------------------------------------+--+---------------+---------+
| | | GBP | GBP |
+---------------------------------------+--+---------------+---------+
| (Loss) / profit on ordinary | | (402,416) | 3,085 |
| activities before tax | | | |
+---------------------------------------+--+---------------+---------+
| | | | |
+---------------------------------------+--+---------------+---------+
| Profit on ordinary activities by rate | | (84,507) | 648 |
| of tax | | | |
+---------------------------------------+--+---------------+---------+
| Capital allowances for the period in | | 2,363 | 585 |
| excess of depreciation | | | |
+---------------------------------------+--+---------------+---------+
| Unused tax losses | | 82,144 | (1,220) |
+---------------------------------------+--+---------------+---------+
| Movement in deferred taxation | | (81,103) | - |
+---------------------------------------+--+---------------+---------+
| Under provision of current tax | | 16,447 | (13) |
+---------------------------------------+--+---------------+---------+
| | | | |
+---------------------------------------+--+---------------+---------+
| Total current tax (note 5(a)) | | (64,656) | |
| | | | - |
+---------------------------------------+--+---------------+---------+
6. 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. There are no dilutive ordinary shares.
+------------------------------------+---------+-----------------+----------------+
| | | 2010 | 2009 |
+------------------------------------+---------+-----------------+----------------+
| | | GBP | GBP |
+------------------------------------+---------+-----------------+----------------+
| (Loss) / Profit attributable to | | (337,760) | 3,085 |
| equity shareholders | | | |
+------------------------------------+---------+-----------------+----------------+
| | | | |
+------------------------------------+---------+-----------------+----------------+
| Weighted average number of shares | | 1,910,595,524 | 707,144,061 |
+------------------------------------+---------+-----------------+----------------+
| | | | |
+------------------------------------+---------+-----------------+----------------+
| Basic & Diluted Earnings per Share | | | |
| | | (0.017678)p | 0.000436p |
+------------------------------------+---------+-----------------+----------------+
| | | | |
+------------------------------------+---------+-----------------+----------------+
7.TRADE AND OTHER RECEIVABLES
+------------------------------------+---------+-----------+--------------+
| | | 2010 | 2009 |
+------------------------------------+---------+-----------+--------------+
| | | GBP | GBP |
+------------------------------------+---------+-----------+--------------+
| | | | |
+------------------------------------+---------+-----------+--------------+
| Trade receivables | | 6,174,025 | 6,208,032 |
+------------------------------------+---------+-----------+--------------+
| Unpaid share capital | | - | 508,933 |
+------------------------------------+---------+-----------+--------------+
| VAT recoverable | | 33,233 | - |
+------------------------------------+---------+-----------+--------------+
| Other receivables | | 301,255 | 375,939 |
+------------------------------------+---------+-----------+--------------+
| Prepayments and accrued income | | 40,260 | 18,241 |
+------------------------------------+---------+-----------+--------------+
| Corporation tax | | | 16,447 |
| | | - | |
+------------------------------------+---------+-----------+--------------+
| | | | |
+------------------------------------+---------+-----------+--------------+
| | | 6,548,773 | 7,127,592 |
+------------------------------------+---------+-----------+--------------+
| | | | |
+------------------------------------+---------+-----------+--------------+
Trade receivables wholly represent finance lease debtors.
+------------------------------------+---------+--------------+--------------+
| | | 2010 | 2009 |
+------------------------------------+---------+--------------+--------------+
| Gross receivables from finance | | GBP | GBP |
| leases | | | |
+------------------------------------+---------+--------------+--------------+
| No later than 1 year | | 3,319,001 | 2,997,621 |
+------------------------------------+---------+--------------+--------------+
| Later than 1 year and no later | | 4,382,015 | 5,079,270 |
| then 5 years | | | |
+------------------------------------+---------+--------------+--------------+
| Later then 5 years | | - | - |
+------------------------------------+---------+--------------+--------------+
| | | | |
+------------------------------------+---------+--------------+--------------+
| Unearned future finance income on | | (1,526,991) | (1,868,859) |
| finance lease | | | |
+------------------------------------+---------+--------------+--------------+
| Net investment in finance leases | | 6,174,025 | 6,208,032 |
+------------------------------------+---------+--------------+--------------+
| The net investment in finance | | | |
| leases may be analysed as follows: | | | |
+------------------------------------+---------+--------------+--------------+
| No later than 1 year | | 2,392,623 | 2,342,881 |
+------------------------------------+---------+--------------+--------------+
| Later than 1 year and no later | | 3,781,402 | 3,865,151 |
| then 5 years | | | |
+------------------------------------+---------+--------------+--------------+
| Later then 5 years | | | |
| | | - | - |
+------------------------------------+---------+--------------+--------------+
| | | 6,174,025 | 6,208,032 |
+------------------------------------+---------+--------------+--------------+
The cost of assets acquired for the purpose of letting under finance leases were
as follows; 2010: GBP2,484,952 (2009: GBP4,157,196).
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 GBP67,917 (2009: GBP54,127), more than three months old GBP51,801 (2009:
GBP90,740), all amounts are secured on the asset to which they relate. No other
assets are past due or impaired.
8.CURRENT LIABILITIES
+---------------------------------+--------+--------------+--------------+
| | | 2010 | 2009 |
+---------------------------------+--------+--------------+--------------+
| | | GBP | GBP |
+---------------------------------+--------+--------------+--------------+
| | | | |
+---------------------------------+--------+--------------+--------------+
| Bank overdrafts | | 80,324 | 501,499 |
+---------------------------------+--------+--------------+--------------+
| Trade payables | | 1,787,867 | 1,804,196 |
+---------------------------------+--------+--------------+--------------+
| VAT payable | | - | 13,279 |
+---------------------------------+--------+--------------+--------------+
| Other taxation and social | | 5,613 | 4,676 |
| securities | | | |
+---------------------------------+--------+--------------+--------------+
| Other payables | | 103,090 | 70,610 |
+---------------------------------+--------+--------------+--------------+
| Accruals and deferred income | | 20,940 | 34,287 |
+---------------------------------+--------+--------------+--------------+
| | | 1,997,834 | 2,428,547 |
+---------------------------------+--------+--------------+--------------+
Trade payables wholly represent funding creditors, which are secured on the
value of finance leases.
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 33 to 42 months and
interest rates from 7.75% to 10%.
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.
9. NON CURRENT LIABILITIES
+---------------------------------+--------+------------+------------+
| | | 2010 | 2009 |
+---------------------------------+--------+------------+------------+
| | | GBP | GBP |
+---------------------------------+--------+------------+------------+
| Other loans | | 250,000 | - |
+---------------------------------+--------+------------+------------+
| Accruals and deferred income | | 36,300 | - |
+---------------------------------+--------+------------+------------+
| Trade payables | | 1,473,849 | 2,246,457 |
+---------------------------------+--------+------------+------------+
| | | 1,760,149 | 2,246,457 |
+---------------------------------+--------+------------+------------+
Other loans are GBP250,000 from UK Private Healthcare Ltd, which is repayable in
June 2011, and is secured by a debenture over the assets of the company.
Trade creditors are secured as noted above, with the same repayment and interest
rates.
Maturity analysis
The following analysis shows the contractual undiscounted cash flows (which
differ from the discounted cash flow totals shown in Current and Non current
liabilities above).
+---------------------------------+--------+-----------+------------+
| | | 2010 | 2009 |
+---------------------------------+--------+-----------+------------+
| | | GBP | GBP |
+---------------------------------+--------+-----------+------------+
| Trade payables: | | | |
+---------------------------------+--------+-----------+------------+
| On demand or within one year | | 1,996,111 | 2,088,513 |
+---------------------------------+--------+-----------+------------+
| More than one year but less | | 1,264,900 | 1,554,697 |
| than two years | | | |
+---------------------------------+--------+-----------+------------+
| More than two years but less | | 284,554 | 881,775 |
| than five years | | | |
+---------------------------------+--------+-----------+------------+
| Total | | 3,545,565 | 4,524,985 |
+---------------------------------+--------+-----------+------------+
10. SHARE CAPITAL AND PREMIUM
Authorised:
The Articles of Association of the company say that there is an unlimited
authorised share capital.
Issued:
+-------------------------+---------------+------------+-----------+---------------+
| | No of | Ordinary | Share | Total |
| | Shares | Shares | Premium | |
+-------------------------+---------------+------------+-----------+---------------+
| | | GBP | GBP | GBP |
+-------------------------+---------------+------------+-----------+---------------+
| At 1 June 2009 | 1,518,979,086 | 1,035,639 | 1,640,867 | 2,676,506 |
+-------------------------+---------------+------------+-----------+---------------+
| Movement | 1,639,999,999 | 1,118,152 | (75,832) | 1,042,320 |
+-------------------------+---------------+------------+-----------+---------------+
| | | | | |
+-------------------------+---------------+------------+-----------+---------------+
| At 31 May 2010 | 3,158,979,085 | 2,153,791 | 1,565,035 | 3,718,826 |
+-------------------------+---------------+------------+-----------+---------------+
| | | | | |
+-------------------------+---------------+------------+-----------+---------------+
Allotted and fully paid:
+-------------------------+---------+---------------+-----------+------------+
| | | No of | Nominal | Total |
| | | Shares | Value | |
+-------------------------+---------+---------------+-----------+------------+
| | | | GBP | GBP |
+-------------------------+---------+---------------+-----------+------------+
| Ordinary Shares | | 3,158,979,085 | 0.0006818 | 2,153,791 |
+-------------------------+---------+---------------+-----------+------------+
| | | | | |
+-------------------------+---------+---------------+-----------+------------+
Issue of shares
On 17 March 2010 the company issued 572,000,001 ordinary shares of nominal value
GBP0.0006818 at GBP0.0007 per share and on 1 April 2010 the company issued
1,067,999,998 ordinary shares of nominal value GBP0.0006818 at GBP0.0007 per
share.
The funds raised were used in 1pm (UK) Limited to finance continuing operations.
11.RETAINED EARNINGS
+---------------------------------+--------+-----------------+---------+
| | | Group | Company |
+---------------------------------+--------+-----------------+---------+
| | | GBP | GBP |
+---------------------------------+--------+-----------------+---------+
| | | | |
+---------------------------------+--------+-----------------+---------+
| At 1 June 2009 | | (88,623) | - |
+---------------------------------+--------+-----------------+---------+
| Loss for the year | | (337,760) | - |
+---------------------------------+--------+-----------------+---------+
| Equity dividends | | | |
| | | - | - |
+---------------------------------+--------+-----------------+---------+
| | | | |
+---------------------------------+--------+-----------------+---------+
| At 31 May 2010 | | (426,383) | |
| | | | - |
+---------------------------------+--------+-----------------+---------+
12. CASH AND CASH EQUIVALENTS
+------------------------------------+---------+----------------+---------------+
| | | 2010 | 2009 |
+------------------------------------+---------+----------------+---------------+
| | | GBP | GBP |
+------------------------------------+---------+----------------+---------------+
| | | | |
+------------------------------------+---------+----------------+---------------+
| Cash at bank and in hand | | 305,211 | 1,655 |
+------------------------------------+---------+----------------+---------------+
| Bank overdrafts | | (80,324) | (501,371) |
+------------------------------------+---------+----------------+---------------+
| Cash and cash equivalents | | 224,887 | (499,716) |
+------------------------------------+---------+----------------+---------------+
| | | | |
+------------------------------------+---------+----------------+---------------+
13.TRANSACTIONS WITH DIRECTORS
A director Mr M R Johnson has given personal guarantees to: Svenska
Handelsbanken plc of GBP350,000, Hitachi Capital Limited of GBP1,000,000,
Venture Finance of GBP500,000, & 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:
R Russell invoiced the company for GBP10,776
M R Johnson invoiced the company for GBP85,547
R Channon invoiced the company for GBP17,816
H Walker invoiced the company for GBP37,240
At the year end, included within Current liabilities are; GBP3,508 due to H
Walker and GBP7,000 due to M R Johnson.
R Russell is a director and 25% shareholder of UK Private Healthcare Ltd who
loaned the company GBP250,000 during the year. At the year end the full amount
is outstanding and included in non-current liabilities.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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