TIDMOPM
RNS Number : 6500H
1PM PLC
13 July 2012
For Immediate Release 16 July 2012
1PM PLC
("1pm" or the "Company")
FINAL RESULTS FOR THE YEAR ENDED 31 MAY 2012 AND NOTICE OF
AGM
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 2012.
Mike Johnson, Non-executive Chairman commented: "Against a
challenging UK economic backdrop, I am pleased to report that 1pm
has produced record results for the year, achieving its highest
ever levels of revenues and profits. This is a demonstration of the
growing success of its business model and the appetite amongst SMEs
for equipment leasing from specialist providers. The Board believes
that the Group is in a strong position for further profitable
growth in the current year and beyond."
Financial Highlights:
-- Revenues up 21% to GBP2.31m (FY11: GBP1.91m)
-- Profit before tax of GBP436k (FY11: GBP202k)
-- Bad Debts and Provisions down to GBP0.18m (FY11: GBP0.19m)
-- Lease portfolio up 8.9% to GBP11.0m (FY11: GBP10.1m)
-- EPS up 108% to 0.0104p (FY11: 0.0048p)
Operations Highlights:
-- Number of customers increased by 25% to 1,881 (FY11: 1,503)
-- Legal recovery costs down 26.6% to GBP69k (FY11: GBP94k)
-- Increased number of partnerships formed with leasing brokers
-- Increased lend from GBP30,000 to GBP50,000 since January 2012
-- Range of assets financed widened to include commercial vehicles
-- GBP4.1m of new funding raised (FY11: GBP2.2m)
Chief Executive, Maria Hampton added: "This is the fourth
consecutive set of published Interim and Full Year results to show
profit. The Group's financial stability and significantly
strengthened Balance Sheet should also help to facilitate the
agreement of additional funding lines and controlled but
significant expansion of the business.
"The Board also believes that 1pm is in an excellent position to
take full advantage of the commercial lending constraints currently
placed on the UK banking industry."
Contacts:
1pm plc
Mike Johnson, Non-executive Chairman 0844 967 0944
Maria Hampton, Chief Executive Officer 0844 967 0944
WH Ireland (NOMAD)
Mike Coe
Marc Davies 0117 945 3470
Winningtons Financial PR
Paul Vann/Tom Cooper 0117 985 8989
07768 807 631
About 1pm:
1pm plc is an established independent asset finance company
focused on providing SMEs with accessible funding to add value to
their businesses. All customers must have good credit histories and
proven ability to repay their finance commitments. 1pm currently
lends from GBP1,000 to- GBP50,000 for a period of between 12 and 60
months. The Company was admitted to AIM in August 2006.
CHIEF EXECUTIVE REVIEW
Financial Results
I am pleased to report that the Group has produced record
results for the year ended 31 May 2012, achieving its highest ever
levels of revenue and profit. The Group has continued to focus on
controlling costs and maximising efficiencies and has delivered
these results despite another challenging year for the global
economy in general and also the financial markets.
Total revenue for the year rose 21 per cent to GBP2.31m (FY11:
GBP1.91m) with profit before tax more than doubling to GBP436,000
(FY11: GBP202,000). 1pm has now made profit month-on-month since
July 2010. Earnings per share also increased by more than double to
0.0104p (FY11: 0.0048p).
The Group has again been able to fund a proportion of its new
lending from its own receivables, which has helped to further
strengthen the balance sheet with net assets at the year-end up to
GBP3.96m (FY11: GBP3.53m), which is an increase of 233 per cent
since the initial flotation in 2006.
The current lease portfolio which has increased by 8.9 per cent
to GBP11.0m (FY11: GBP10.1m) has an average loan value of GBP6.9k
(FY11: GBP7.3k) with no single customer representing more than 0.5
per cent of the total portfolio value.
Bad and written off debt fell again during the year and is down
to GBP0.18m (FY11: GBP0.19m) or less than 1.7 per cent of the lease
portfolio value at the year-end. 1pm now handles most of the
recovery aspects of these defaulted debts in-house and this has
reduced recovery costs by 26.6 per cent to GBP69k (FY11: GBP94k)
over the past 12 months. The underwriting of customers and the
collection of defaulted debt continues to be monitored very closely
and is reviewed and amended where necessary on a regular basis.
Operations and Business Development
New business written during the year amounted to GBP4.96m (FY11:
GBP6.1m). This reduction in new business compared to the previous
year was in large part caused by a marked slowdown in the market
between January and March of this year, coinciding as it did with
increased uncertainty over the future of the Eurozone and concerns
over the content of the March Budget. However, sales recovered
strongly in the last two months of the year culminating in record
new business in May of GBP700k.
This upturn in sales was helped by a number of new marketing
initiatives introduced during the second half of the year. These
included an increase in our maximum individual lend advance from
GBP30,000 to GBP50,000, expanding the range of assets we are
willing to finance and the promotion of the business to new leasing
brokers in Northern Ireland. The Board believes that the positive
trading momentum experienced in the last quarter can be maintained
in the current year.
We continue to market to the whole of Great Britain and Northern
Ireland and specifically target areas where our customer base is
low. To this end, the Group has formed relationships with a further
15 new leasing brokers during the year. 1pm is now in partnership
with over 50 leasing brokers and sees the development of these
relationships as a key driver for growth. However, whilst the Board
is seeking to accelerate sales over the next 12 months, it will not
compromise the quality of the lease portfolio by taking on undue
risk.
During the financial year, the Group moved to larger premises
[in Bath] and should have sufficient capacity to manage its
targeted growth. 1pm has also upgraded its website during the year
(www.1pm.co.uk).
Staff
The Board would like to put on record their appreciation of the
hard work and commitment exhibited by staff during the year.
Financing
Last year, the Board stated that one of its principal objectives
for the coming year was to build a financially secure platform to
enable the business to grow. I am pleased to report that this has
been achieved with the Group having raised a further GBP4.1m of new
funding (FY11: GBP2.2m).
Shareholders
The Board are very grateful to its shareholders for their
on-going support and we will continue to strive to increase
shareholder value.
Outlook
In 2011, Project Merlin was launched by the Government in an
attempt to stimulate UK banks into lending to SMEs, but to date the
banks have failed to meet the targets set. Now, more than ever, 1pm
has an important role in helping SMEs expand and grow, by offering
access to funding which currently is not being provided by the
mainstream banking sector.
The asset and leasing industry has stepped up to the plate and
is starting to fill the funding gap that has evolved. We see this
as a major opportunity for our business and we intend to take full
advantage of all such opportunities as they occur.
The progress of the business this year has been unprecedented
and the Board and staff look forward to another year of further
significant growth.
Maria Hampton
Chief Executive Officer
16 July 2012
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2012
Notes 2012 2011
GBP GBP
CONTINUING OPERATIONS
Revenue 2 2,310,571 1,906,262
Cost of Sales (1,275,253) (1,122,283)
GROSS PROFIT 1,035,318 783,979
Administrative expenses (576,542) (555,357)
OPERATING PROFIT 458,776 228,622
4
Finance costs (22,749) (26,444)
Finance income 4 - 52
PROFIT BEFORE INCOME
TAX 5 436,027 202,330
Income tax 6 (87,602) 48,083)
PROFIT FOR THE YEAR 348,425 154,247
Profit attributable
to:
Owners of the parent 348,425 154,247
Earnings per share expressed
In pence per share: 8
Basic 0.010447 0.00483
Diluted 0.010447 0.00483
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 MAY 2012
2012 2011
Notes GBP GBP
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 9 38,621 30,253
Investments 10 - -
Deferred tax 18 24,278 111,881
62,899 142,134
CURRENT ASSETS
Trade and other receivables 11 10,111,880 9,289,129
Cash and cash equivalents 12 5,187 353
10,117,067 9,289,482
TOTAL ASSETS 10,179,966 9,431,616
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 13 2,315,132 2,236,725
Share premium 14 1,569,340 1,567,249
Retained earnings 14 76,289 (272,136)
TOTAL EQUITY 3,960,761 3,531,838
LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables 15 3,125,473 2,889,474
Financial liabilities - borrowings
Interest bearing loans
and borrowings 16 100,000 -
3,225,473 2,889,474
CURRENT LIABILITIES
Trade and other payables 15 2,927,418 2,786,056
Financial liabilities - borrowings
Bank overdrafts 16 66,314 94,248
Interest bearing loans
and borrowings 16 - 130,000
2,993,732 3,010,304
TOTAL LIABILITIES 6,219,205 5,899,778
TOTAL EQUITY AND LIABILITIES 10,179,966 9,431,616
1 PM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2012
Called up Profit
share and loss Share Total
capital account premium equity
GBP GBP GBP GBP
Balance at 1 June 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
Changes in equity
Issue of share capital 78,407 - 2,091 80,498
Total comprehensive income - 348,425 - 348,425
Balance at 31 May 2012 2,315,132 76,289 1,569,340 3,960,761
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2012
2012 2011
Notes GBP GBP
Cash flows from operating activities
Cash generated from operations 21 3,308 (242,227)
Interest paid (22,749) (26,444)
Net cash from operating activities (19,441) (268,671)
Cash flows from investing activities
Purchase of tangible fixed assets (28,289) (15,411)
Interest received - 152
Net cash from investing activities (28,289) (15,259)
Cash flows from financing activities
Loan repayments in year - (120,000)
Share issue 80,498 85,148
Net cash from financing activities 80,498 (34,852)
Increase/(decrease) in cash and cash
equivalents 32,768 (318,782)
Cash and cash equivalents
at beginning of year 22 (93,895) 224,887
Cash and cash equivalents
at end of year 22 (61,127) (93,895)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2012
1. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards (as adopted by the
European Union) and IFRIC interpretations and with those parts of
the Companies Act 2006 applicable to companies reporting under
IFRS. The financial statements have been prepared under the
historical cost convention.
2. SEGMENTAL REPORTING
The company has one business segment to which all revenue,
expenditure, assets and liabilities relate.
3. EMPLOYEES AND DIRECTORS
2012 2011
GBP GBP
Wages and salaries 335,584 338,866
Social security costs 20,297 20,103
Other pension costs 1,708 1,050
357,589 360,019
The average monthly number of employees during the year was as
follows:
2012 2011
Management 1 1
Administrative 7 7
8 8
2012 2011
GBP GBP
Directors' remuneration 187,374 206,143
Directors' pension contributions to money
purchase schemes 1,050 1,050
The number of directors to whom retirement benefits were
accruing was as follows:
Money purchase schemes 1 1
The directors' aggregate emoluments in respect of qualifying
services were:
2012 2011
GBP GBP
M Johnson 43,742 65,000
M Hampton 70,000 70,000
H Walker 47,087 46,143
R Channon 16,168 15,000
R Russell 10,377 10,000
187,374 206,143
4. NET FINANCE COSTS
2012 2011
GBP GBP
Finance income:
Bank account interest - 152
Finance costs:
Bank interest 11,535 7,540
Bank loan interest 11,214 18,904
22,749 26,444
Net finance costs 22,749 26,292
5. PROFIT BEFORE INCOME TAX
The profit before income tax is stated after charging:
2012 2011
GBP GBP
Other operating leases 20,924 19,800
Depreciation - owned assets 19,921 21,636
Auditors' remuneration 9,000 9,000
Non audit services 3,450 3,450
6. INCOME TAX
Analysis of tax expense
2012 2011
GBP GBP
Deferred tax 87,602 48,083
Total tax expense in consolidated income
statement 87,602 48,083
Factors affecting the tax expense
The tax assessed for the year is higher than the standard rate
of corporation tax in the UK. The difference is explained
below:
2012 2011
GBP GBP
Profit on ordinary activities before income
tax 436,027 202,330
Profit on ordinary activities
multiplied by the standard rate of corporation tax
in the UK of 20% (2011 - 21%) 87,205 42,489
Effects of:
Capital allowances in excess of depreciation (2,545) (144)
Unused trading losses 2,942 5,738
Tax expense 87,602 48,083
Corporation tax is calculated at 20% (2011: 21%) of estimated
assessable profit for the year. The tax expense of GBP87,602 is
then reduced to nil through the utilisation of the tax losses
brought forward, the income statement charge being the utilisation
of the tax loss (via the deferred tax).
7. PROFIT OF PARENT COMPANY
As permitted by Section 408 of the Companies Act 2006, the
income statement and statement of comprehensive income of the
parent company is not presented as part of these financial
statements. The parent company's profit for the financial year was
GBP0 (2011 - GBP0).
8. 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.
2012 2011
Profit/(Loss) attributable to equity shareholders GBP348,425 GBP154,247
Weighted average number of shares 3,335,162,802 3,195,491,908
Basic and diluted earnings per share 0.010447p 0.004827p
9. PROPERTY, PLANT AND EQUIPMENT
Group
Computer
equipment
GBP
COST
At 1 June 2011 147,302
Additions 28,289
At 31 May 2012 175,591
DEPRECIATION
At 1 June 2011 117,049
Charge for year 19,921
At 31 May 2012 136,970
NET BOOK VALUE
At 31 May 2012 38,621
At 31 May 2011 30,253
Group
Computer
equipment
GBP
COST
At 1 June 2010 131,891
Additions 15,411
At 31 May 2011 147,302
DEPRECIATION
At 1 June 2010 95,413
Charge for year 21,636
At 31 May 2011 117,049
NET BOOK VALUE
At 31 May 2011 30,253
Equipment held under finance leases and hire purchase contracts,
included in the relevant heading in the above table are:
2012 2011
GBP GBP
Cost at 1 June 2011 and 31 May 2012 10,142 10,142
Depreciation at 1 June 9,158 6,622
Charge 984 2,536
At 31 May 10,142 9,158
Net book value 0 984
10. INVESTMENTS
Company
Shares in
group
undertakings
GBP
COST
At 1 June 2011
and 31 May 2012 50,000
NET BOOK VALUE
At 31 May 2012 50,000
At 31 May 2011 50,000
The group or the company's investments at the statement of
financial position date in the share capital of companies include
the following:
Subsidiary
1 PM (UK) Limited
Nature of business: Leasing
%
Class of shares: holding
Ordinary 100.00
2012 2011
GBP GBP
Aggregate capital and reserves 126,289 (222,136)
Profit for the year 348,425 154,247
11. TRADE AND OTHER RECEIVABLES
Group Company
2012 2011 2012 2011
GBP GBP GBP GBP
Current:
Trade receivables 9,519,278 8,752,542 - -
Amounts owed by group undertakings - - 3,829,285 3,883,621
Other receivables 498,697 478,936 - -
VAT 57,475 25,807 - -
Prepayments and accrued income 36,430 31,844 - -
10,111,880 9,289,129 3,829,285 3,883,621
Trade receivables wholly represent finance lease
receivables.
2012 2011
Gross receivables from finance leases: GBP GBP
No later than 1 year 4,766,707 4,411,197
Later than 1 year and no later than 5 years 7,360,275 6,885,757
Later than 5 years 0 0
Unearned future finance income on finance
leases (2,607,704) (2,544,412)
Net investment in finance leases 9,519,278 8,752,542
The net investment in finance leases are receivable as
follows:
No later than 1 year 3,284,029 2,927,584
Later than 1 year and no later than 5 years 6,235,249 5,824,958
Later than 5 years 0 0
Total 9,519,278 8,752,542
The cost of assets acquired for the purpose of letting under
finance leases was GBP4,958,694 (2011: GBP6,105,899).
Included within Trade receivables are the following receivables
that are past due but not impaired as they are considered
recoverable:
2012 2011
GBP GBP
Less than 3 months old 43,547 67,984
More than 3 months old 80,739 56,545
All amounts are secured on the asset to which they relate. No
other assets are past due or impaired.
Included within Cost of Sales are impairment losses in the sum
of GBP181,833 (2011: GBP188,131).
12. CASH AND CASH EQUIVALENTS
Group Company
2012 2011 2012 2011
GBP GBP GBP GBP
Bank accounts 5,187 353 5,187 353
13. CALLED UP SHARE CAPITAL
The Articles of Association of the company state that there is
an unlimited authorised share capital. Each share carries the
entitlement to one vote.
The issued share capital of the company is as follows:
Ordinary Share Premium
No. of shares Total
shares
No. GBP GBP GBP
At 1 June 2011 3,280,618,771 2,236,725 1,567,249 3,803,974
Movement 114,999,998 78,407 2,091 80,498
At 31 May 2012 3,395,618,769 2,315,132 1,569,340 3,884,472
Allotted and fully paid:
Nominal
No. of Value Total
shares
No. GBP GBP
Ordinary shares 3,395,618,769 0.0006818 2,315,132
During the year the company issued 114,999,998 ordinary shares
with a nominal value of GBP0.0006818 at GBP0.0007 per share.
The funds raised were used in 1 PM (UK) Limited to finance
continuing operations.
14. RESERVES
Group
Retained Share
earnings premium Totals
GBP GBP GBP
At 1 June 2011 (272,136) 1,567,249 1,295,113
Profit for the year 348,425 348,425
Issue of shares - 2,091 2,091
At 31 May 2012 76,289 1,569,340 1,645,629
Company
Retained Share
earnings premium Totals
GBP GBP GBP
At 1 June 2011 - 1,567,249 1,567,249
Profit for the year - -
Issue of shares - 2,091 2,091
At 31 May 2012 - 1,569,340 1,569,340
15. TRADE AND OTHER PAYABLES
Group
2012 2011
GBP GBP
Current:
Trade payables 2,778,978 2,669,208
Social security and other taxes 5,895 7,170
Other payables 142,545 109,678
2,927,418 2,786,056
Non-current:
Trade payables 3,125,473 2,865,474
Accruals and deferred income - 24,000
3,125,473 2,889,474
Aggregate amounts 6,052,891 5,675,530
Trade payables wholly represent funding payables, which are
secured on the value of the 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 at inception varies from 24 to 48 months and interest rates
from 6.99% 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.
16. FINANCIAL LIABILITIES - BORROWINGS
Group Company
2012 2011 2012 2011
GBP GBP GBP GBP
Current:
Bank overdrafts 66,314 94,248 - -
Other loans - 130,000 - 130,000
66,314 224,248 - 130,000
Non-current:
Other loans - 1-2 years 100,000 - - -
Terms and debt repayment schedule
Group
1 year or
less 1-2 years Totals
GBP GBP GBP
Bank overdrafts 66,314 - 66,314
Other loans - 100,000 100,000
66,314 100,000 166,314
Trade payables are secured as noted above, with the same
repayment and interest rates.
The following analysis shows the contractual undiscounted cash
flows (which differ from the discounted cash flow totals shown in
Current and Non-current payables above):
2012 2011
GBP GBP
Trade payables:
On demand or within one year 3,132,064 3,029,901
More than one year but less than two years 2,402,670 2,012,699
More than two years but less than five years 917,007 1,067,111
6,451,741 6,109,711
Other loans constitute loans from H Walker and J Bower (H
Walker's partner) who each loaned the company GBP50,000.
17. LEASING AGREEMENTS
Group
Non-cancellable
operating leases
2012 2011
GBP GBP
Within one year 87,000 83,550
Between one and five years 69,250 90,000
156,250 173,550
The company leases offices under non-cancellable operating lease
agreements. The lease term is five years with a break clause after
three years and is renewable at the end of the lease period at
market rate.
Operating lease expenditure is disclosed in Note 5.
The future aggregate minimum lease payments under
non-cancellable finance leases are as follows:
2012 2011
GBP GBP
Minimum lease payments:
No later than one year 0 643
Later than one year and no later than five 0 0
years
Less: future finance charges 0 (113)
Present value of minimum lease payments 0 530
Included in the financial statements as:
Other payables < 1 year 0 530
Trade payables > 1 year 0 0
0 530
18. DEFERRED TAX
(Asset)/Liability:
Group
2012 2011
GBP GBP
Balance at 1 June (111,881) (159,964)
Trading losses utilised 87,603 48,308
Fixed asset timing differences - (225)
Balance at 31 May (24,278) (111,881)
There are no deductible temporary difference, unused tax losses
and unused tax credits for which no deferred tax asset has been
recognised.
The deferred tax asset arising from un-used tax losses has been
recognised on the forecast future profits of the subsidiary.
The deferred tax included within the statement of financial
position is as follows:
2012 2011
GBP GBP
Fixed asset timing differences 0 (1,621)
Unused trading losses 24,278 113,502
Included in non-current assets 24,278 111,881
19. TRANSACTIONS WITH DIRECTORS
Mr M R Johnson (Director) has given personal guarantees to:
Svenska Handelsbanken Plc of GBP100,000 (2011: GBP350,000), Hitachi
Capital Limited of GBP1,000,000, Venture Finance of GBP500,000, and
Close Asset Finance Limited of GBP750,000. Hitachi Capital Limited
will not require a personal guarantee for any future block funding
drawn down after June 12, the guarantee held on the existing loans
will amortise over the life of the loans.
During the year the following transactions occurred:
2012 2011
GBP GBP
M R Johnson (Director) - services rendered 42,928 65,000
M R Johnson (Director) - expenses reimbursed 814 1,511
R Channon (Director) - services rendered 15,000 15,000
R Channon (Director) - expenses reimbursed 1,168 1,283
H Walker (Director) - services rendered 47,087 46,143
R Russell (Director) - services rendered 10,000 10,000
R Russell (Director) - expenses reimbursed 377 1,298
At the year end, included within liabilities are balances due
to:
2012 2011
GBP GBP
M R Johnson (Director) 3,395 4,038
H Walker (Director) 4,712 3,703
R Channon (Director) 1,152 31
R Russell (Director) 0 17,638
R Russell loaned the company GBP800,000, interest is charged at
11%. The gross amount of GBP992,467 is repayable in forty eight
monthly payments. The amount repayable in the year was GBP248,117
(net GBP174,509). The total amount outstanding at the year end was
GBP661,645. Interest in the sum of GBP73,608 (2011: GBP31,546)
accrued in the year. No amounts were written off during the
year.
S Russell (R Russell's spouse) loaned the company GBP300,000, on
which interest in the sum of GBP20,967 accrued in the year.
H Walker and J Bower (H Walker's partner) each loaned the
company GBP50,000, on which interest in the sum of GBP2,479 and
GBP2,125 respectively accrued in the year.
20. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Group
2012 2011
GBP GBP
Profit for the financial year 348,425 154,247
Proceeds from share issue 80,498 85,148
Net addition to shareholders' funds 428,923 239,395
Opening shareholders' funds 3,531,838 3,292,443
Closing shareholders' funds 3,960,761 3,531,838
Company
2012 2011
GBP GBP
Profit for the financial year - -
Proceeds from share issue 80,498 85,148
Net addition to shareholders' funds 80,498 85,148
Opening shareholders' funds 3,803,974 3,718,826
Closing shareholders' funds 3,884,472 3,803,974
21. RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED
FROM OPERATIONS
Group
2012 2011
GBP GBP
Profit before income tax 436,027 202,330
Depreciation charges 19,922 21,635
Finance costs 22,749 26,444
Finance income - (152)
478,698 250,257
Increase in trade and other receivables (822,751)
(2,740,356)
Increase in trade and other payables 347,361 2,247,872
Cash generated from operations 3,308 (242,227)
Company
2012 2011
GBP GBP
Profit before income tax - -
Increase in trade and other receivables (75,664) (270,006)
Cash generated from operations (75,664) (270,006)
22. CASH AND CASH EQUIVALENTS
The amounts disclosed on the statements of cash flow in respect
of cash and cash equivalents are in respect of these statement of
financial position amounts:
Group Company
Year ended 31 May 2012
31.5.12 1.6.11 31.5.12 1.6.11
GBP GBP GBP GBP
Cash and cash equivalents 5,187 353 5,187 353
Bank overdrafts (66,314) (94,248) - -
(61,127) (93,895) 5,187 353
Year ended 31 May 2011
31.5.11 1.6.10 31.5.11 1.6.10
GBP GBP GBP GBP
Cash and cash equivalents 353 305,211 353 305,211
Bank overdrafts (94,248) (80,324) - -
(93,895) 224,887 353 305,211
23. FINANCIAL INSTRUMENTS
The group's financial instruments comprise cash and liquid
resources, including receivables and payables that are also
financial instruments that arise directly from operations. The main
purpose of the financial instruments is to fund the group's
operations. As a matter of policy the group does not trade in
financial instruments, nor does it enter into any derivative
transactions.
The operations of the group have principally been financed to
date through the funds raised on the placing of shares on the
Alternative Investment Market and block funding payables. The group
has an overdraft facility in place with the group's bankers and an
overdraft facility totalling GBP350,000 (2011: GBP350,000).
The group's main objectives for the management of capital are;
to ensure there is sufficient cash available to be able to provide
finance to customers, and to be able to pay debts as they fall due.
The forms of capital managed by the group are the block funding and
bank overdraft facilities. The group is not subject to any
externally imposed capital requirements from these finance
providers.
Working capital requirements are constantly monitored including
the interest rates from the key providers of block funding
finance.
The main risks to the group, and the policies adopted by the
directors to minimise the efforts on the group are as follows:
Credit Risk - The directors believe that credit risk is limited
due to debts being spread over a large number of receivables. No
individual receivable poses a significant risk. In recent years the
group has reduced the average lease value as this reduces the
group's exposure to significant, individual receivables and group
debt collection procedures are continually assessed.
Interest rate and liquidity risk - All of the group's cash
balances and short term deposits are held in such a way that
enables the correct balance of access to working capital and a
competitive rate of interest is achieved.
24. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information set out in this announcement does not
comprise the Group's statutory accounts for the years ended 31 May
2012 or 31 May 2011.
The financial information has been extracted from the statutory
accounts of the Company for the years ended 31 May 2012 and 31 May
2011. The auditors' opinion on those accounts was unmodified and
did not contain a statement under section 498 (2) or section 498
(3) Companies Act 2006 and did not include references to any
matters to which the auditor drew attention by the way of
emphasis.
The statutory accounts for the year ended 31 May 2011 have been
delivered to the Registrar of Companies, whereas those for the year
ended 31 May 2012 will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.
25. ANNUAL REPORT AND ANNUAL GENERAL MEETING
The Annual Report will be available from the Company's website
www.1pm.co.uk from 16 July 2012 and will be posted to shareholders
on or around 20 July 2012. The Annual Report contains notice of the
Annual General Meeting of the Company which will be held at the
Francis Hotel, Queen Square, Bath BA1 2HH on 13 August
2012 at 12.30p.m.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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