TIDMOPM
RNS Number : 5757C
1PM PLC
20 January 2015
For Immediate Release
20(th) January 2015
1pm plc
("1pm", the "Group" or the "Company")
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2014
Strong trading momentum maintained
1pm, the AIM quoted independent provider of finance to the SME
sector, announces its Interim Results for the six month period
ended 30 November 2014.
Commenting on the results, Chairman, Ian Smith, said:
"I am very pleased to report that the Group has again recorded
excellent results for the first half of the current financial year,
maintaining the profitable growth experienced over recent years.
These results firmly underpin the Board's decision to invest in
additional resources during the second half of the financial year
which will provide a platform for continued growth".
Financial Highlights
-- Revenue for the period increased 31% to GBP2.56m (H1 2014: GBP1.95m);
-- Profit before taxation increased 25% to GBP0.76m (H1 2014: GBP0.61m);
-- Earnings per share increased 18% to 1.91p (H1 2014: 1.61p);
-- Net receivables increased 36% to GBP20.42m (H1 2014: GBP15.07m)
Operational Highlights
-- Record monthly sales in October of over GBP1.5m;
-- New business written during the period up 36% compared to same period last year;
-- Total portfolio increased to GBP24.3m (H1 2014: GBP17.7m);
-- Relationships now established with over 100 finance brokers
nationwide, an increase of over 30 in the period
On current trading and prospects, CEO, Maria Lewis added:
"As previously reported, the current financial year will be a
transitional one for the Company as we invest in additional
resources and significantly increase business capacity. A key
milestone in this process was reached in December when the Group
relocated to larger offices to help facilitate the delivery of its
strategic aims over the next 3 to 4 years. We plan to recruit up to
20 additional staff over the next 12 months and there will also be
investment in new IT systems and business development
resources."
For further information, please contact:
1pm plc www.1pm.co.uk
Ian Smith, Chairman 0844 967 0944
Maria Lewis, CEO 0844 967 0944
WH Ireland (NOMAD) www.wh-ireland.co.uk
Mike Coe, Ed Allsopp 0117 945 3470
Winningtons Financial PR 0117 985 8989
Paul Vann 07768 807631
paul.vann@winningtons.co.uk
About 1pm:
The Company was admitted to AIM in August 2006.
1pm plc is an established independent 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 provides asset finance from GBP1,000 to GBP50,000
for a period of between 12 and 60 months and GBP1,000 to GBP26,000
for business loans (repaid over 3-36 months).
Mission Statement - 'Helping the UK economy grow by providing
finance to businesses'
You can find more information on the Company website
www.1pm.co.uk
CHIEF EXECUTIVE'S STATEMENT
Financial Results
I am pleased to report that the Group has continued to make good
progress during the first half of the current financial year and
the trading results achieved provide confidence for the outcome of
the year as a whole.
Total revenue for the first six months of the current year rose
by 31% to GBP2.56m compared with the same period last year (H1
2014: GBP1.95m) with profit before tax increasing by 25% to
GBP0.76m (H1 2014: GBP0.61m). Earnings per share increased 18% to
1.91p (H1 2014: 1.61p). 1pm has now been consistently profitable on
a monthly basis since July 2010.
The Group's balance sheet has also been further strengthened
during the period with GBP3.8m (before costs) of new equity capital
raised through a share placing and open offer. As at 30 November
2014, net assets stood at GBP11.66m (H1 2014: GBP6.43m), an 81%
increase compared with the same period last year.
Operations and strategy
The Group wrote GBP6.8m of new business during the first six
months of the trading year, a 36% increase compared with the
corresponding period last year (H1 2014: GBP5.0m) and included
record sales of over GBP1.5m written during the month of October
2014.
Whilst Asset Leasing remains the core business, the Group has
continued to develop and expand its portfolio of financial products
aimed specifically at the servicing UK's SME (Small and
Medium-sized Enterprises) market, and in August 2014 introduced
Hire Purchase lending for the first time. To date this has
generated approximately GBP50,000 of new business and is starting
to gain traction in the marketplace. Business Loans were introduced
in September 2013 and due to demand the maximum loan facility has
been increased from GBP15,000 to GBP26,000.
The Lease portfolio now stands at GBP23m (H1 2014: GBP17.5m),
which is an increase of 31%; the Loan portfolio stands at GBP1.3m
(H1 2014: GBP0.14m), which is an 800% increase since the same
period last year.
At the period end, the combined Lease, Loan and HP portfolio has
increased to GBP24.3m, a 38% increase over the same period last
year (H1 2014: GBP17.60m) and a 19% increase since the year end
last May (FY2014: GBP20.4m). The portfolio has an average loan
value of GBP9.8k (H1 2014: GBP8.5k) with no single customer
representing more than 0.51% of the total portfolio value (H1 2013:
0.53%).
In addition, the Board is actively seeking suitable acquisition
opportunities to augment its continued strong organic growth.
The Group continues to engage with finance brokers across the UK
and is committed to maintaining, developing and expanding this
vital source of new business. Helped by its growing reputation
within the finance industry, the Group has successfully formed
relationships with over 30 additional finance brokers during the
period to 30 November 2014. It is now in partnership with over 100
finance brokers nationwide.
The management team continue to review and develop policies,
procedures and new products whilst maintaining a strict
underwriting approach and strong credit management policy. Together
these have helped to deliver profitable growth and minimise bad
debt write offs, which at 30 November 2014 stood at GBP111k
representing just 0.46% of the portfolio (H1 2014: 0.64%)
The Group is pleased to announce the appointment of Steve Grey
as a non PLC Operations Director. Steve has thirty years experience
within the industry and has held various senior positions including
appointments with Aldermore Bank, GE Capital and Abbey Business;
the Company is also in the process of recruiting additional members
of staff in all areas in the expectation of continued growth. On
behalf of the Board, I would like to take this opportunity to thank
the Group's dedicated staff for their hard work and commitment.
Financing
The Group has raised GBP9.5m (H1 2014: 4.9m) of new funding
since 31 May 2014, of which GBP3.8m (before costs) was new equity
capital raised via a share placing and open offer at 61 pence per
share in October 2014.
These and other funding lines provide 1pm with the raw material
to continue its growth strategy.
More information regarding how individuals or organisations may
provide funding to 1pm is available on the Group's website
http://www.1pm.co.uk/Funding.
Board Change
During the period, Rodney Channon stepped down as a
non-executive director. The Board would like to thank him for his
service and wish him well for the future.
Outlook
The current financial year will be a transitional one for the
Company as we invest in additional resources across the Group to
significantly increase business capacity. The Group relocated to
larger offices in December 2014 to help facilitate the delivery of
its strategic aims over the next 3 to 4 years. Over the next 12
months we also plan to recruit up to 20 additional staff across all
disciplines and to invest in new IT systems and additional business
development resources.
Notwithstanding the additional costs which will be incurred in
the second half of the financial year as the planned investment in
additional resources is made, the Board remains very optimistic
that the trading success experienced by the Group over recent years
will continue and that 1pm is well placed to take advantage of the
continuing strong demand within the UK SME market for its products
and services.
I would like to thank our staff, shareholders, advisors,
clients, finance brokers and funding partners for their continued
support.
M Lewis
CEO, 1pm plc
Independent Review Report to 1 pm plc
Introduction
We have been instructed by the company to review the financial
information set out on pages 6 to 10 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 2014 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
19 January 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 NOVEMBER
2014
Independently Independently Audited
Reviewed Reviewed 12 months
6 months 6 months to
to to 31 May
30 November 30 November
2014 2013 2014
Note GBP GBP GBP
REVENUE 2,560,943 1,953,303 4,211,569
Cost of sales (1,161,718) (922,510) (1,994,239)
-------------- --------------- -------------
GROSS PROFIT 1,399,225 1,030,793 2,217,330
Administrative expenses (625,977) (409,887) (844,978)
-------------- --------------- -------------
OPERATING PROFIT 773,248 620,906 1,372,352
Finance income 1,165 554 558
Finance expense (12,209) (12,258) (26,386)
-------------- --------------- -------------
PROFIT BEFORE TAXATION 762,204 609,202 1,346,524
Taxation (160,055) (137,610) (297,326)
-------------- --------------- -------------
PROFIT AFTER TAXATION 602,149 471,592 1,049,198
============== =============== =============
Attributable to equity holders
of the company 602,149 471,592 1,049,198
============== =============== =============
Profit per share attributable
to the equity holders of the
company during the Period
Pence per Pence per Pence per
share share share
- basic and diluted 5 1.91 1.61 3.54
============== =============== =============
All of the above amounts are in respect of continuing
operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 NOVEMBER
2014
Independently Independently Audited
Reviewed Reviewed 12 months
6 months 6 months to
to to 31 May
30 November 30 November
2014 2013 2014
GBP GBP GBP
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 224,378 47,641 72,873
-------------- --------------- -------------
CURRENT ASSETS
Cash at bank and in hand 2,957,442 17,441 2,713
Trade and other receivables 20,415,351 15,065,338 17,324,246
-------------- --------------- -------------
TOTAL CURRENT ASSETS 23,372,793 15,082,779 17,326,959
-------------- --------------- -------------
TOTAL ASSETS 23,597,171 15,130,420 17,399,832
============== =============== =============
EQUITY
Called up share capital 3,692,260 2,996,933 2,996,933
Share premium account 5,645,387 2,287,540 2,287,540
Retained earnings 2,325,703 1,145,949 1,723,555
-------------- --------------- -------------
TOTAL EQUITY 11,663,350 6,430,422 7,008,028
-------------- --------------- -------------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 6,043,939 5,010,247 5,886,930
NON CURRENT LIABILITIES
Trade and other payables 5,889,882 3,689,751 4,504,874
-------------- --------------- -------------
TOTAL LIABILITIES 11,933,821 8,699,998 10,391,804
-------------- --------------- -------------
TOTAL EQUITY AND LIABILITIES 23,597,171 15,130,420 17,399,832
============== =============== =============
CONSOLIDATED INTERIM CASH FLOW STATEMENT
FOR THE SIX MONTHS TO 30 NOVEMBER
2014
Independently Independently Audited
Reviewed Reviewed 12 months
6 months 6 months to
to to 31 May
30 November 30 November
2014 2013 2014
GBP GBP GBP
Cash flows from operating activities
Cash generated from operations (95,873) (1,301,227) (1,039,033)
Interest Paid (12,209) (12,258) (26,386)
Tax paid - - (147,941)
-------------- --------------- -------------
Net cash generated from operating
activities (108,082) (1,313,485) (1,213,360)
-------------- --------------- -------------
Cash flows from investing activities
Interest received 1,165 554 558
Purchase of tangible fixed assets (173,744) (16,445) (55,388)
-------------- --------------- -------------
Net cash generated from investing
activities (172,579) (15,891) (54,830)
-------------- --------------- -------------
Cash flows from financing activities
Repayment of loans (380,000) (20,000) (20,000)
Issue of shares net of costs 4,018,475 1,400,001 1,400,001
Share consolidation - - (5,000)
-------------- --------------- -------------
Net cash generated from financing
activities 3,638,475 1,380,001 1,375,001
-------------- --------------- -------------
Increase in cash and cash
equivalents 3,357,814 50,625 106,811
Cash and cash equivalents at
the beginning of the year (400,372) (507,183) (507,183)
-------------- --------------- -------------
Cash and cash equivalents at
the end of the year 2,957,442 (456,558) (400,372)
============== =============== =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 30 NOVEMBER 2014
Share Capital Share Premium Retained Total Equity
Earnings
Balance at 31 May 2014 2,996,933 2,287,540 1,723,555 7,008,028
Movement in share capital 695,327 3,357,846 - 4,053,173
Profit for period - - 602,149 602,149
-------------- -------------- ---------- -------------
Balance at 30 November 2014 3,692,260 5,645,386 2,325,704 11,663,350
============== ============== ========== =============
Balance at 30 November 2013 2,996,933 2,287,540 1,145,949 6,430,422
Movement in share capital - - - -
Profit for the period - - 577,606 577,606
-------------- -------------- ---------- -------------
Balance at 31 May 2014 2,996,933 2,287,540 1,723,555 7,008,028
============== ============== ========== =============
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 2014 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 2014. The financial information for the
six months ended 30 November 2013 and the six month period 30 November
2014 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 2014 is calculated
by applying the directors' best estimate of the annual tax rate to
the result for the period.
4 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.
On 20 October 2014 the company issued shares to the value of GBP4.016
million (before expenses) by way of:
* A Placing of 4,918,032 ordinary shares of nominal
value 0.10p at 0.61p per share; and
* An Open Offer of 1,344,259 ordinary shares of 0.10p
at 0.61p per share;
* Repayment of a loan from UK Private Healthcare
Limited (a company of which Ronald Russell is a
director and with which he is connected by virtue of
a 25% shareholding) with an outstanding balance of
GBP380,000, with the proceeds applied in subscribing
for 622,950 ordinary shares of 0.10p at 0.61p per
share.
Share Option Incentives.
During the 6 months to 30 November 2014, an amount of GBP41,504 representing
68,040 shares of nominal value 0.10p at a price of 0.61p per share
has been accrued in relation to employee and director share schemes,
(40,986 for employees and 27,054 for directors).
At 30 November 2014 the share capital of the company is 36,922,610
ordinary shares, including 68,040 to be issued relating to the share
schemes, with a nominal value of 10p each.
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 and accrued during the period as follows:
6 months 6 months
to to
30-Nov-14 30-Nov-13
GBP GBP
Profit for the period after
taxation 602,149 471,592
Number Number
31,586,768 29,228,242
Basic weighted average of
ordinary shares post consolidation
Pps Pps
Basic earnings (pence per
share) 1.906333 1.613481
The basic earnings per share is calculated on the weighted average
number of shares in issue and accrued during the period.
6 RELATED PARTY TRANSACTIONS
An amount of GBP15,000 has been accrued and agreed to be paid in connection
with Mr Rodney Channon stepping down as a non-executive director of
the Company.
7 COPIES OF THE INTERIM REPORT
Copies of the Interim Report are available from www.1pm.co.uk and
the Company Secretary at the registered office: 2(nd) Floor, St James
House, The Square, Lower Bristol Road, Bath BA2 3BH
This information is provided by RNS
The company news service from the London Stock Exchange
END
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