TIDMOPM
RNS Number : 0995Y
1PM PLC
17 December 2010
1PM PLC
(AIM: OPM)
Interim Consolidated Results for the six months ended 30
November 2010
The Board of 1pm, the AIM quoted independent provider of asset
finance facilities to the SME sector, announces today its
independently reviewed interim results for the six month period to
30 November 2010.
Contacts:
1pm plc www.1pm.co.uk
Mike Johnson, Chairman +44 (0) 844 967 0944
Maria Hampton, Managing Director +44 (0) 844 967 0944
WH Ireland Limited www.wh-ireland.co.uk
Mike Coe / Marc Davies +44 (0) 117 945 3470
CHAIRMAN'S STATEMENT
I am pleased to report the results for the six months to 30
November 2010. The last six months and, indeed, the whole of 2010
has been an exciting time for 1pm.
As announced in recent trading updates, the Company has made
significant progress and I am delighted to confirm a return to
profitability. This is primarily due to a measured increase in new
business levels and, as a result, the lease portfolio has grown 43%
from the start of the period and now stands at GBP9.19 million.
Furthermore, the Company has agreed additional funding lines of up
to GBP1.3 million, which have supported the growth in new
business.
Results
Turnover for the period was 30% higher at GBP880,000 (H1 2009:
GBP676 000)
Operating profit before bad debt write-offs and provisioning was
GBP197 000 (H1 2009: GBP5,000)
Bad debt write-offs in the period were GBP87,000 (H1 2009:
GBP182,000)
The profit before taxation for the period was GBP63,000 (H1
2009: Loss GBP226,000)
As at 30 November 2010 the total lease portfolio amounted to
GBP9.19 million (H12009: GBP6.41 million)
Operating review
During the six-month period the Company wrote GBP3,546,000 of
new leases compared to GBP976,000 in the corresponding period last
year. This is a very positive improvement in trading and reflects a
concerted drive to enhance levels of new business during this
period and the hard work and commitment from our experienced
staff.
We continue to build our relationships with brokers and their
increased understanding of our requirements has improved the
conversion rate of proposals submitted by them. Bank borrowing
still remains difficult to obtain for many SME businesses and the
implications for 1pm continue to be that there is strong demand for
our leasing facilities from brokers.
The business model of 1pm is such that the financial benefit of
new business is felt over the length of the leases provided. With
an average lease length of approximately three years the recent
improvement in trading will have a positive effect on revenue and
profitability for this financial year and subsequent years.
Despite the significant increase in new business we have not
compromised our prudent approach and all new leases are subject to
a consistent underwriting policy.
I am pleased to confirm that we have not seen a repeat of the
unusually high levels of bad debts experienced last year. Bad debt
write-offs in the period were 52.2 per cent. lower and overall bad
debt provisions are also lower than the equivalent period.
Financing
In October we agreed a funding line with Ron Russell,
non-executive director, which provides for the draw down of up to
two tranches of GBP400,000, giving a maximum funding line of
GBP800,000. This funding line is exclusively for the purpose of
writing new lease contracts. As at 30 November 2010, the Company
had drawn down GBP400,000.
In November we agreed a new block discounting line of
GBP500,000.
We remain in discussions regarding additional funding and are
confident that further funding lines will be available if
required.
In broad terms, the greater the size of the lease portfolio the
greater the monthly cash it will generate. It is the directors'
chosen strategy that, where appropriate, the operating cash flow
generated will be reinvested back into the business and used to
write further new business.
Outlook
The board of 1pm are committed to delivering increased
shareholder value. Having returned to profitability in the first
half the directors are confident that this can be built on during
the second half. Enquiry levels for new lease agreements remains
strong and further growth in the portfolio is anticipated.
1pm remains a relatively small business in the overall UK
leasing market but the board believes it has excellent growth
prospects. The directors have identified a strategy to expand
through entering new geographic markets for which we already have
the systems in place to accommodate this aim.
The board of 1pm remain very optimistic for the future. We would
like to thank all of our clients and our brokers for their support
to 1pm in 2010.
M R Johnson
Chairman, 1pm plc
Independent Review Report to 1pm plc
Introduction
We have been instructed by the company to review the financial
information set out on pages 4 to 8 and we have read the other
information contained in the interim report and considered whether
it contains any apparent misstatements or material inconsistencies
with the financial information.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of, and has been approved
by the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the rules of the
London Stock Exchange for companies trading securities on AIM, a
market operated by the London Stock Exchange plc. The Disclosure
and Transparency Rules require that the accounting policies and
presentation applied to the half yearly figures must be consistent
with those applied in the latest published annual accounts except
where the accounting policies and presentation are to be changed in
the subsequent annual financial statements, in which case the new
accounting policies and presentation should be followed, and the
change and the reasons for the changes should be disclosed in the
half yearly financial report. The condensed set of financial
statements included in this half yearly financial report has been
prepared in accordance with International Accounting Standard 34,
"Interim Financial Reporting".
Our responsibility
Our responsibility is to express a conclusion on the condensed
set of financial statements in the half yearly financial report
based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410. "Review of
Interim Financial Information performed by the Independent Auditor
of the Entity," issued by the Auditing Practices Board for use in
the United Kingdom. A review consists principally of making
enquiries of group management and applying analytical and other
review procedures to the financial information. A review excludes
audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in
scope than an audit performed in accordance with Auditing Standards
and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial
information.
Review conclusion
On the basis of our review, nothing has come to our attention
that causes us to believe that the condensed set of financial
statements in the half yearly financial report for the six months
ended 30 November 2010 is not prepared, in all material respects,
in accordance with International Accounting Standard 34.
Moore Stephens Registered Auditors Chartered Accountants 30 Gay
Street
Bath BA1 2PA
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months to 30 November 2010
Independently Independently Audited
Reviewed Reviewed 12 months
6 months 6 months to
to to 31 May
30 November 30 November 2010
2010 2009
Note GBP GBP GBP
REVENUE 880,175 675,620 1,331,922
Cost of sales (523,596) (623,776) (1,184,547)
GROSS PROFIT 356,579 51,844 147,375
Administrative expenses (278,928) (261,671) (516,978)
OPERATING PROFIT/(LOSS) 77,651 (209,827) (369,603)
Finance income 152 - 303
Finance expense (14,363) (16,276) (33,116)
PROFIT / (LOSS) BEFORE
TAXATION 63,440 (226,103) (402,416)
Tax expense (12,688) - 64,656
PROFIT / (LOSS) ON AFTER
TAXATION 50,752 (226,103) (337,760)
Attributable to equity
holders of the company 50,752 (226,103) (337,760)
Profit per share attributable
to the equity holders of
the company during the
period
- basic and diluted 50.001924p (0.00014885p) (0.017678)p
All of the above amounts are in respect of continuing
operations.
CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
for the six months to 30 November 2010
Independently Independently Audited
Reviewed Reviewed 12 months
as at as at as at
30 November 30 November 31 May
2010 2009 2010
GBP GBP GBP
ASSETS
NON CURRENT ASSETS
Deferred income taxes 147,276 - 159,964
Property, plant and equipment 25,741 45,012 36,478
173,017 45,012 196,442
CURRENT ASSETS
Cash at bank and in hand 8,465 26,967 305,211
Trade and other receivables 8,599,435 6,440,650 6,548,773
TOTAL CURRENT ASSETS 8,607,900 6,467,617 6,853,984
TOTAL ASSETS 8,780,917 6,512,629 7,050,426
EQUITY
Share capital 2,153,791 1,035,640 2,153,791
Share premium account 1,565,035 1,615,323 1,565,035
Retained earnings (375,631) (314,727) (426,383)
TOTAL EQUITY 3,343,195 2,336,236 3,292,443
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 3,023,065 2,142,151 1,997,834
NON CURRENT LIABILITIES
Trade and other payables 2,414,657 2,034,242 1,760,149
TOTAL LIABILITIES 5,437,722 4,176,393 3,757,983
TOTAL EQUITY AND LIABILITIES 8,780,917 6,512,629 7,050,426
CONSOLIDATED INTERIM CASH FLOW STATEMENT
for the six months to 30 November 2010
Independently Independently Audited 12
Reviewed Reviewed months to
6 months to 6 months 31 May
30 November to 2010
2010 30 November
2009
Note GBP GBP GBP
CASH FLOWS FROM OPERATING ACTIVITIES
Consumed by operations (457,053) (464,902) (262,399)
Taxation - - (16,447)
Net cash generated from operating
activities (457,053) (464,902) (278,846)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 152 - 303
Finance expense (14,363) (16,276) (33,116)
Purchase of property, plant and
equipment (1,820) (2,273) (6,058)
Net cash generated from investing
activities (16,031) (18,549) (38,871)
CASH FLOWS FROM FINANCING ACTIVITIES
Term loan (60,000) 250,000 -
Issue of shares net of costs - 477,980 1,042,320
Net cash generated from financing
activities (60,000) 727,980 1,042,320
NET INCREASE IN CASH AND CASH
EQUIVALENTS (533,084) 244,529 724,603
CASH AND CASH EQUIVALENTS AT
THE BEGINNING OF THE PERIOD 255,187 (499,716) (499,716)
CASH AND CASH EQUIVALENTS AT
THE END OF THE PERIOD (308,197) (255,187) 224,887
STATEMENTS OF CHANGES IN EQUITY
Share Share Retained Total
Capital Premium Earnings Equity
Balance at 31 May 2010 2,153,791 1,565,035 (426,383) 3,292,443
Movement in share capital - - - -
Profit for period - - 50,752 50,752
Balance at 30 November 2010 2,153,791 1,565,035 (375,631) 3,343,195
Balance at 30 November 2009 1,035,640 1,615,323 (314,727) 2,336,236
Movement in share capital 1,118,151 (50,288) - 1,067,863
Profit /(loss) for the period - - (111,656) (111,656)
Balance at 31 May 2010 2,153,791 1,565,035 (426,383) 3,292,443
1 BASIS OF PREPARATION
The financial information set out in the interim report does not
constitute statutory accounts as defined in section 434(3) and
435(3) of the Companies Act 2006. The Group's statutory financial
statements for the year ended 31 May 2010 prepared in accordance
with IFRS as adopted by the European Union and with the Companies
Act 2006 have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and
did not contain a statement under Section 498(2) of the Companies
Act 2006.
These interim financial statements have been prepared under the
historical cost convention.
These interim financial statements have been prepared in
accordance with the accounting policies set out in the most
recently available public information, which are based on the
recognition and measurement principles of IFRS in issue as adopted
by the European Union (EU) and are effective at 31 May 2010 or are
expected to be adopted and effective at 31 May 2011, The financial
information for the six months ended 30 November 2009 and the six
month period 30 November 2010 are unaudited and do not constitute
the groups statutory financial statements for these periods. The
accounting policies have been applied consistently throughout the
Group for the purposes of preparation of these interim financial
statements.
2 BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(it's subsidiaries). 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.
3 TAXATION
Taxation charged for the period ended 30 November 2010 is
calculated by applying the directors' best estimate of the annual
tax rate to the result for the period.
4 SHARE CAPITAL
As at 30 November 2010, the company had an authorised share
capital of 3 158,979,085 ordinary shares of GBP0.0006818p each, of
which 2,637,247 579 had been issued and were fully paid.
5 EARNINGS PER ORDINARY SHARE
The earnings per ordinary share has been calculated using the
profit for the period and the weighted average number of ordinary
shares in issue during the period as follows:
Six months
to
30 November
2010
GBP
Profit/(loss) for the period
after taxation 50,752
Number
Basic weighted average of ordinary
shares 2,637,358,579
Pps
Basic earnings (pence per share) 0.001924
The basic earnings per share is calculated on the weighted
average number of shares in issue during the period.
6 COPIES OF THE INTERIM REPORT
Copies of the interim report will be sent to shareholders and
are available from www.1pm.co.uk and the company secretary at the
company's registered office: 27 Gay Street, Bath, BA1 2PD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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