New Funding Line
October 11 2010 - 2:00AM
UK Regulatory
TIDMOPM
RNS Number : 1273U
1PM PLC
11 October 2010
1PM PLC
(AIM: OPM)
New Funding Line
1pm plc ("1pm" or "the Company"), the specialist provider of lease asset finance
to the SME sector, is pleased to announce that it has agreed a new funding line
of up to GBP800,000 ("the Facility"). The Facility has been agreed with Ron
Russell, non-executive director, who has an interest in 882,609,050 shares in
the Company representing approximately 27.94 per cent. The Facility is
exclusively for the purpose of writing new lease contracts.
The Facility provides for the draw down of up to two tranches of GBP400,000,
giving a maximum value of GBP800,000. Each draw down will be subject to an
interest charge of 11 per cent. per annum and is repayable in 48 equal
installments. There is no time limit on the availability of the Facility and no
fees other than the interest charges. As at the date of this announcement the
Company has drawn down GBP400,000 under the Facility.
This Facility presents the Company with additional scope to lend to new and
existing customers and hence to grow its lease portfolio. As previously
announced the Company has made a very strong start to the current financial year
and has returned to profit in the first quarter. The Company is also pleased to
announce that trading continues to be strong with sales in every month since the
start of the financial year being in excess of budget. The Company remains
profitable on a month on month basis.
Ron Russell is a director of the Company and therefore the agreement of the
Facility is classified under the AIM Rules as a related party transaction. The
independent directors of 1pm, that is the Directors excluding Ron Russell,
having consulted with their nominated adviser, WH Ireland Limited, consider that
the terms of this transaction are fair and reasonable insofar as the Company's
shareholders are concerned.
Michael Johnson, Chairman of 1pm, commented:
"We are delighted to have agreed this Facility. Our Company's pleasing recent
level of sales and our continuing sales growth indicates that the asset finance
market may, itself, be returning to growth and we believe that 1pm is well
positioned to continue to grow its lease portfolio without compromising our
standards. The recurrent challenge is accessing funds to support portfolio
growth and to that extent the Facility will provide 1pm with the flexibility and
resource to take advantage of the improving opportunities that we are currently
seeing."
+-----------------------------------+-----------------------------------+
| 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 |
+-----------------------------------+-----------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
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