TIDMOPM
RNS Number : 6953K
1PM PLC
20 July 2011
20 July 2011 AIM: OPM
1PM PLC
("1pm" or the "Company")
FINAL RESULTS FOR THE YEAR ENDED 31 MAY 2011
1pm plc (AIM: OPM), the AIM listed independent provider of asset
finance facilities to the SME sector, announces final results for
the year ended 31 May 2011.
Financial Highlights:
-- Revenues up 43% to GBP1.91m (FY10: GBP1.33m)
-- Profit before tax of GBP0.20m (FY10: GBP0.40m loss)
-- Bad Debts and Provisions down 46% to GBP0.19m (FY10:
GBP0.35m)
-- Lease portfolio up 66% to GBP10.10m from GBP6.10m
Operations Highlights:
-- 64% of lease portfolio now under GBP10,000
-- Number of unique customers up 79%
-- Robust lending and collection criteria
-- Improved relationships with broking partners
-- Reduced exposure to individual bad debts
Regarding outlook, Michael Johnson, Chairman, said:
"The board believes that an increasing amount of good quality
business is available to be written, especially as larger banks
continue to restrict lending to our customer base. This is evident
from the quantity of business the company is processing month on
month.
"We have strong relationships with our existing funders and will
continue to look for new and alternative funding options. The more
resources available to the Company the more it can lend on to
customers. The Directors believe that the Company's return to
profitability should facilitate the agreement of additional funding
lines.
"In summary, the Company is in a great position to take full
advantage of the constraints currently placed on the UK banking
industry and is confident that, with the right support, it will
continue to gain strength."
Contacts:
1pm plc
Mike Johnson, Chairman 0844 967 0944
Maria Hampton, Managing Director 0844 967 0944
WH Ireland (NOMAD)
Mike Coe
Marc Davies 0117 945 3470
Walbrook PR Ltd 020 7933 8780
Paul McManus/Helen Westaway (Media
Enquiries)
Paul Cornelius (Investor Enquiries)
CHAIRMAN'S STATEMENT
The last few years has seen one of the most challenging trading
environments for many years Weak consumer confidence, combined with
constrained bank lending has made for an uncertain business
climate. However, I am pleased to report that this year your
Company has delivered a resilient, consistent and much improved
performance.
1pm has returned to an annual profit of GBP202k (FY2010: GBP402k
loss) and revenue is 43% up on FY2010. The level of new business
written during the year was GBP6.1m (FY2010: GBP2.4m) and the lease
portfolio has risen to GBP10.1m (FY2010: GBP6.1m). As a result of
the increased portfolio the Company is now able to fund a
proportion of its new lending from its own receivables.
Business
The Company lends between GBP1,000 and GBP30,000 over an average
term of three years. The Company's average lease agreement is
GBP7,500 and around 64% of the lease portfolio consists of lends
under GBP10,000. In recent years the Directors have made a decision
to reduce the average lease value as this reduces the Company's
exposure to significant, individual bad debts.
The number of unique customers has increased by 79% and the
Company hopes to continue this trend by improving its relationships
with its lease broking partners and customers, and by continuing to
improve its incentives and services available, whilst maximising
margins.
All customers must meet our very strict underwriting criteria
which is reviewed regularly. Our collection procedures are also
continually assessed and I'm pleased to report that since 2007 the
Company has collected GBP1.8m of the bad debts that had previously
been written off.
The strength of the business model ensures that we are able to
continue our organic growth without over-stretching our resources.
The reputation we have formed has proved instrumental in the
success of the business. We are delighted with the progress of the
business this year and look forward to the future.
Staff
As always the enthusiasm from 1pm staff has been constant and
their passion for, and belief in, 1pm is admirable. The Board is
grateful for their continued commitment.
Shareholders
Our focus towards shareholders remains fixed on building a
financially secure platform, which will enable the business to grow
further in the coming years. Tight financial controls are in place
and lessons have been learned from the recent economic down
turn.
Looking ahead, you can be sure that the Board will continue both
to support and challenge the Company, ensuring that the long-term
interests of the Company and its shareholders are looked after.
Outlook
The board believes that an increasing amount of good quality
business is available to be written, especially as larger banks
continue to restrict lending to our customer base. This is evident
from the quantity of business the company is processing month on
month We have strong relationships with our existing funders and
will continue to look for new and alternative funding options. The
more resources available to the Company the more it can lend on to
customers. The Directors believe that the Company's return to
profitability should facilitate the agreement of additional funding
lines.
In summary, the Company is in a great position to take full
advantage of the constraints currently placed on the UK banking
industry and is confident that, with the right support, it will
continue to gain strength.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2011
Note 2011 2010
GBP GBP
REVENUE 1,906,262 1,331,922
Cost of sales (1,122,283) (1,184,547)
GROSS PROFIT 783,979 147,375
Administrative expenses (555,357) (516,978)
OPERATING (LOSS) / PROFIT 2 228,622 (369,603)
Finance income 152 303
Finance costs (26,444) (33,116)
(LOSS) / PROFIT BEFORE TAX 202,330 (402,416)
Income tax expense 5 (48,083) 64,656
(LOSS) / PROFIT AND COMPREHENSIVE
INCOME FOR THE YEAR 154,247 (337,760)
Attributable to equity holders
of the company 154,247 (337,760)
Profit per share attributable
to the equity
holders of the company during
the year
- basic and diluted 6 0.00483p (0.017678)p
All of the activities of the company are classed as
continuing.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 MAY 2011
Notes 2011 2010
GBP GBP
ASSETS
NON CURRENT ASSETS
Deferred income taxes 111,881 159,964
Property, plant and equipment 30,253 36,478
142,134 196,442
CURRENT ASSETS
Trade and other receivables 7 9,289,129 6,548,773
Cash and cash equivalents 353 305,211
TOTAL CURRENT ASSETS 9,289,482 6,853,984
TOTAL ASSETS 9,431,616 7,050,426
EQUITY
Share capital 10 2,236,725 2,153,791
Share premium account 10 1,567,249 1,565,035
Retained earnings 11 (272,136) (426,383)
TOTAL EQUITY 3,531,838 3,292,443
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 8 2,786,056 1,917,510
Bank overdrafts 94,248 80,324
Interest bearing loans and borrowings 130,000 250,000
3,010,304 2,247,834
NON CURRENT LIABILITIES
Trade and other payables 9 2,889,474 1,510,149
TOTAL LIABILITIES 5,899,778 3,757,983
TOTAL EQUITY AND LIABILITIES 9,431,616 7,050,426
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2011
Notes 2011 2010
GBP GBP
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations (242,227) (528,845)
Interest Paid (26,444) (33,116)
Net cash from operating activities (268,671) (561,961)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible fixed assets (15,411) (6,059)
Interest received 152 303
Net cash generated from investing
activities (15,259) (5,756)
CASH FLOWS FROM FINANCING ACTIVITIES
New loans in year - 250,000
Loan repayments in year (120,000) -
Share Issue 85,148 1,042,320
NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS (318,782) 724,603
CASH AND CASH EQUIVALENTS AT
THE
BEGINNING OF THE YEAR 224,887 (499,716)
CASH AND CASH EQUIVALENTS AT
THE
END OF THE YEAR 12 (93,895) 224,887
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2011
CONSOLIDATED GROUP
Share Retained Share Total
Capital Earnings Premium Equity
GBP GBP GBP GBP
Balance at 1 June 2009 1,035,639 (88,623) 1,640,867 2,587,883
Changes in equity
Issue of share capital 1,118,152 - (75,832) 1,042,320
Total comprehensive income - (337,760) - (337,760)
Balance at 31 May 2010 2,153,791 (426,383) 1,565,035 3,292,443
Changes in equity
Issue of share capital 82,934 - 2,214 85,148
Total comprehensive income - 154,247 - 154,247
Balance at 31 May 2011 2,236,725 (272,136) 1,567,249 3,531,838
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 31 MAY 2011
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 2011 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 2011 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:
2011 2010
GBP GBP
Depreciation of property, plant
and equipment 21,636 24,232
Auditors remuneration (see below) 12,200 11,900
Staff costs (see note 3) 360,019 334,174
Operating lease costs:
Rent 19,800 29,911
Auditors' remuneration:
2011 2010
GBP GBP
Audit services
Statutory audit 8,750 8,500
Non audit services
Other services pursuant to legislation 3,450 3,400
Total 12,200 11,900
3. STAFF COSTS
2011 2010
GBP GBP
Wages and salaries 338,866 317,786
Social security costs 20,103 15,338
Other pension costs 1,050 1,050
360,019 334,174
The average number of staff employed by the company during the
financial period amounted to:
2011 2010
No No
Administrative 6 6
Management 1 1
7 7
4. DIRECTORS' REMUNERATION
The directors' aggregate emoluments in respect of qualifying
services were:
2011 2010
Aggregate Emoluments GBP GBP
M Johnson 65,000 85,547
M Hampton 70,000 70,000
H Walker 46,143 37,240
R Channon 15,000 17,816
R Russell 10,000 10,776
P O'Connell - resigned 29.05.09 0 3,000
206,143 224,379
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:
2011 2010
No No
Money purchase schemes 1 1
5. INCOME TAX EXPENSE
(a) 2011 2010
Current tax GBP GBP
UK corporation tax charge - -
Movement in deferred taxation 48,083 (81,103)
Under provision in prior years - 16,447
Current tax 48,083 (64,656)
Corporation tax is calculated at 21% (2010: 21%) of the
estimated assessable profit for the year.
Factors affecting the tax charge:
The tax assessed for the year is lower (2010 higher) than the
standard rate of corporation tax in the UK. The difference is
explained below:
(b) 2011 2010
GBP GBP
(Loss) / profit on ordinary activities
before tax 202,330 (402,416)
Profit on ordinary activities by rate
of tax 42,489 (84,507)
Capital allowances for the period in
excess of depreciation (144) 2,363
Unused tax losses (42,345) 82,144
Under provision of current tax - 16,447
Total current tax (note 5(a)) - 16,447
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.
2011 2010
GBP GBP
Profit / (loss) attributable
to equity shareholders 154,247 (337,760)
Weighted average number of shares 3,195,491,908 1,910,595,524
Basic & Diluted Earnings per
Share 0.004827p (0.017678)p
7. TRADE AND OTHER RECEIVABLES
2011 2010
GBP GBP
Trade receivables 8,752,542 6,174,025
VAT recoverable 25,807 33,233
Other receivables 478,936 301,255
Prepayments and accrued income 31,844 40,260
Corporation tax - -
9,289,129 6,548,773
Trade receivables wholly represent finance lease debtors.
2011 2010
Gross receivables from finance
leases GBP GBP
No later than 1 year 4,411,197 3,319,001
Later than 1 year and no later
then 5 years 6,885,757 4,382,015
Later then 5 years - -
Unearned future finance income
on finance lease (2,544,412) (1,526,991)
Net investment in finance leases 8,752,542 6,174,025
The net investment in finance
leases may be analysed as follows:
No later than 1 year 2,927,584 2,392,623
Later than 1 year and no later
then 5 years 5,824,958 3,781,402
Later then 5 years - -
8,752,542 6,174,025
The cost of assets acquired for the purpose of letting under
finance leases were as follows; 2011: GBP6,105,899 (2010:
GBP2,484,952).
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 GBP67,984 (2010:
GBP67,917), more than three months old GBP56,545 (2010: GBP51,801),
all amounts are secured on the asset to which they relate. No other
assets are past due or impaired.
8. CURRENT LIABILITIES
2011 2010
GBP GBP
Trade payables 2,669,208 1,787,867
Other taxation and social securities 7,170 5,613
Other payables 109,678 124,030
2,786,056 1,917,510
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 11%.
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
2011 2010
GBP GBP
Accruals and deferred income 24,000 36,300
Trade payables 2,865,474 1,473,849
2,889,474 -1,510,149
Other loans are GBP130,000 from UK Private Healthcare Ltd, which
is repayable in June 2012, 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).
2011 2010
GBP GBP
Trade payables:
On demand or within one year 3,029,901 1,996,111
More than one year but less than
two years 2,012,699 1,264,900
More than two years but less
than five years 1,067,111 284,554
Total 6,109,711 3,545,565
10. SHARE CAPITAL AND PREMIUM
Authorised:
The Articles of Association of the company say that there is an
unlimited authorised share capital.
Issued:
Ordinary
No of Shares Shares Share Premium Total
GBP GBP GBP
At 1 June 2010 3,158,979,085 2,153,791 1,565,035 3,718,826
Movement 121,639,686 82,934 2,214 85,148
At 31 May 2011 3,280,618,771 2,236,725 1,567,249 3,803,974
Allotted and fully paid:
Nominal
No of Shares Value Total
GBP GBP
Ordinary Shares 3,280,618,771 0.0006818 2,236,725
Issue of shares
During the year the company issued 121,639,686 ordinary shares
with a nominal value of 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 2010 (426,383) -
Profit for the year 154,247 -
Equity dividends - -
At 31 May 2011 (272,136) -
12. CASH AND CASH EQUIVALENTS
2011 2010
GBP GBP
Cash at bank and in hand 353 305,211
Bank overdrafts (94,248) (80,324)
Cash and cash equivalents (93,895) 224,887
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 GBP42,844
M R Johnson invoiced the company for GBP66,511
R Channon invoiced the company for GBP16,283
H Walker invoiced the company for GBP46,143
At the year end, included within Current liabilities are;
GBP4,038 due to H Walker, GBP3,703 due to M R Johnson, GBP31 due to
R Channon and GBP17,638 due to R Russell.
R Russell is a director and 25% shareholder of UK Private
Healthcare Ltd, a company which has an outstanding loan balance of
GBP130,000 (2010 GBP250,000), included within financial
liabilities.
R Russell (Director loaned the company GBP600,000, interest is
charged at 11%. The gross amount of GBP744,350 is repayable in
forty eight monthly payments.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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