TIDMOPM
RNS Number : 9035I
1PM PLC
09 July 2013
The 'Final Results: A Record Financial Performance' announcement
released on 9 July at 07.00 under RNS No 8614I has been
reformatted.
All material details remain unchanged.
The full text is shown below.
For Immediate Release 9 July 2013
1PM PLC
("1pm" or the "Company" or the "Group")
FINAL RESULTS FOR THE YEAR ENDED 31 MAY 2013
Strong trading momentum maintained to produce another record
financial performance
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 2013.
Commenting on the results, Non-executive Chairman, Mike Johnson,
said: "Against a challenging UK economic backdrop, I am very
pleased to report that 1pm has produced another set of record
results, achieving its highest ever levels of revenues and profits.
This is proof positive of the success of its business model, its
growing reputation within the industry and the appetite amongst
SMEs for equipment leasing from specialist independent
providers".
Financial Highlights:
-- Revenues up 34.5 per cent. to GBP3.1m (FY12: GBP2.31m)
-- Profit before tax up 77.8% to GBP775k (FY12: GBP436k)
-- EPS up 70 per cent to 0.0178p (FY12: 0.0104p)
-- Lease portfolio up 34.6 per cent. to GBP14.8m (FY12: GBP11.0m)
-- Net assets increased by 15.2 per cent. to GBP4.56m (FY12: GBP3.96m) as at 31 May 2013
-- GBP1.5m of new equity capital raised (before costs) through
share placing with Henderson Global Investors after year-end
Operational Highlights:
-- New business written during year up 57 per cent, to GBP7.8m (FY12: GBP4.96m)
-- GBP4.14m of new funding raised (FY12: GBP4.1m)
-- Customer numbers increased by 26.5 per cent to 2,380 (FY12: 1,881)
-- UK-wide network of finance brokers increased significantly during the year
-- Continued strict underwriting and credit management controls;
bad debts and provisions at an all-time low of 1.4 per cent of
Lease Portfolio
On current trading and prospects, Chief Executive, Maria Hampton
added: "This is the sixth consecutive set of published results to
show profit and revenue increases, and I am pleased to report that
trading since the year end has remained buoyant. The Group is very
well placed both strategically and financially to take further
advantage of the significant growth opportunities which exist
within the SME lease finance market. The Board anticipates further
profitable growth in the current year".
Contacts:
1pm plc
Mike Johnson, Non-executive Chairman 0844 967 0944
Maria Hampton, Chief Executive Officer 0844 967 0944
WH Ireland (NOMAD)
Mike Coe 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.
Mission Statement - 'Helping the UK economy grow by supporting
SMEs'
You can find more information on the Company website
www.1pm.co.uk
CHIEF EXECUTIVE REVIEW
Financial Results
I am very pleased to report to shareholders that the financial
year ended 31 May 2013 was the third consecutive year of increased
profit and revenue; moreover, the Group out-performed revised
market expectations and produced another set of record results,
culminating in its highest ever monthly sales and profits in May
2013. The Group has delivered these results by continuing to focus
on its core strengths. It combines a high quality customer service
with a flexible approach to lending whilst maintaining strict
underwriting and credit management controls to a market it knows
well - the UK's SME market.
Total revenue for the year rose 34.5 per cent. to GBP3.1m (FY12:
GBP2.31m), with profit before tax increasing by 77.8 per cent. to
GBP0.775m (FY12: GBP0.436m). Earnings per share increased by 70 per
cent. to 0.0178p (FY12: 0.0104p).
The Group's balance sheet has continued to strengthen during the
year with net assets as at 31 May 2013 standing at GBP4.56m (FY12:
GBP3.96m).
The lease portfolio has also grown significantly during the
year, increasing by 34.5 per cent to GBP14.8m (FY12: GBP11.0m).
However, no single customer accounts for more than 0.53 per cent.
of the total portfolio value. Notwithstanding the current economic
climate, defaults are at an all-time low of less than 1.4 per cent.
of the portfolio balance and bad debts and provisions as a
percentage of the portfolio have decreased by 18.7 per cent. We
believe these figures reflect our continued focus on credit
management.
Strategic review
The Board has identified a number of significant growth
opportunities which will complement the Group's current activities
and business model. These include the provision of small business
loans to the SME market which continues to experience its own
"credit crunch" as a result of the mainstream banking sector's
reluctance to provide sufficient funds to small businesses despite
Government intervention.
Our unwavering commitment and focus on this much neglected
sector of the UK economy will continue.
Operations and Business Development
During the year the Group enjoyed two record sales months;
firstly during October 2012 which saw the Group write GBP840k of
new business and most recently, in the final month of the financial
year, in May 2013 where record sales of GBP920k were achieved.
New business written during the year amounted to GBP7.8m (FY12:
GBP4.96m), an increase of 57 per cent., another record for the
Group.
The management team continue to build upon the strong
foundations which have been laid and have achieved consistent,
continually improving results over the past three years. The
policies and procedures in place are regularly reviewed and a
responsible and prudent approach to lending has helped to deliver a
robust portfolio.
The systems in place are also reviewed regularly to ensure 1pm
is working as efficiently as possible. We have made improvements to
our bespoke Customer Relationship Management system during the year
to further improve production and reduce administration.
The Group's relationship with its network of over 70 finance
brokers continues to be a priority. Management places great
emphasis on building communication and trust within this network,
developing existing relationships whilst growing the network to
further improve the Group's geographical coverage of the UK SME
market.
Staff
The results are a reflection of the quality and hard work of the
people employed by the Group.
Investment within the business has continued and during the year
1pm recruited four additional members of staff; including two
apprentices from the local college.
On behalf of the Board and Shareholders, I would like to thank
all staff for their continued contribution and commitment to the
Group.
Financing
I am pleased to report that the Group raised GBP4.14m of new
funding (FY12: 4.1m) during the financial year from a variety of
sources including commercial banking institutions and high net
worth individuals. This funding is used solely for the purpose of
writing new business. The Board will continue to seek additional
funding sources in order to continue to support and satisfy growing
demand from the UK SME market.
Shareholders
In June 2013, following the financial year end, the Group raised
GBP1.5m before costs from Henderson Global Investors Ltd,
("Henderson") by way of a placing of new ordinary shares. The Board
is very pleased to have an institution such as Henderson supporting
the Group.
The Group is very grateful to all of its shareholders for their
on-going support and the Board will continue its focus on
increasing returns and building shareholder value.
Outlook
Over the past three years the Group has established a strong,
stable platform upon which to continue to build its core business.
This remains our priority; however the Board is aware of other
opportunities that will complement its existing strategy, such as
acquisitions and new product offerings.
The withdrawal from the leasing market of one of the UK's
largest lenders, ING Lease last November, combined with the
constraints placed on the UK mainstream banking sector has resulted
in a dramatic increase in business levels, which triggered the need
to increase staff numbers. 1pm will continue to monitor new
business volumes and will recruit new staff accordingly.
Over the past three years the Group has established a strong,
stable platform upon which to continue to further build its
business.
The Board remains very positive about the opportunities to
increase its market share and enhance further its reputation within
the marketplace as a leading independent provider of finance to the
SME market. The Group is well positioned to take advantage of the
significant growth potential and anticipates further profitable
growth in in the current financial year.
Maria Hampton
Chief Executive Officer
8 July 2013
CONSOLIDATED INCOME STATEMENT
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