1PM PLC Pre-close trading update (4848J)
December 18 2015 - 2:00AM
UK Regulatory
TIDMOPM
RNS Number : 4848J
1PM PLC
18 December 2015
18 December 2015
1pm plc
("1pm", the "Group" or "the Company")
Pre-close trading update
"Strong trading momentum maintained;
Further profitable growth at both 1pm and Academy Leasing"
1pm plc (AIM: OPM), the AIM listed independent specialist
provider of finance facilities to the SME sector, is pleased to
announce the following trading update ahead of the publication of
its interim results for the six months ended 30(th) November 2015,
which are scheduled to be released during the week commencing
25(th) January 2016.
The trading results for the half year ended 30(th) November 2015
will show further growth in revenue and profits compared with the
corresponding period last year and are ahead of management
expectations. The results include a first contribution from Academy
Leasing Limited ("Academy") for the period from 25(th) August 2015
to 30(th) November 2015. Academy, a provider of equipment finance
and an equipment and vehicles broker to the SME market, is the only
trading company within the MH Holdings (UK) Limited group of
companies ("MH Holdings"), which was acquired by 1pm plc on 25(th)
August 2015 (the "Acquisition"). The trading results of Academy are
also ahead of management expectations.
1pm and Academy (together the "Group") continue to experience
high levels of demand for finance from the SME sector across the
range of products offered, being asset finance (finance lease and
hire purchase), business loans and vehicles broking.
During the period, the Group originated GBP9.7m of new lease and
hire purchase contracts (H1 2015: GBP5.8m) and GBP6.1m of business
loans (H1 2015: GBP1.0m), a six-fold increase over the
corresponding period last year. Since the Acquisition of Academy,
the Group also earned GBP0.2m of commission from broked-on lease
and hire purchase contracts (H1 2015: GBPnil) and GBP0.3m of
commission from broked-on vehicle leases (H1 2015: GBPnil), both
new revenue streams for 1pm.
As at 30th November 2015, the Group's combined asset finance and
business loans portfolio stood at GBP57.0m. This comprised GBP39.4m
at 1pm (H1 2015: GBP24.3m), an increase of 62 per cent. since
November 2014 and an increase of 30 per cent. since the year end on
31 May 2015; and GBP17.6m at Academy.
To fund this organic growth in the half year to 30(th) November
2015, the Group increased its use of the headroom in its existing
block funding facilities, raised additional debt funding of GBP2.5m
(H1 2015: GBP5.7m) and reinvested GBP4.5m of cash flow generated
from operations (2015: GBP0.8m).
To fund the cash element of the Academy Acquisition
consideration, 1pm raised GBP6.9m of equity finance (net of
expenses) by means of an oversubscribed share placing and open
offer at 60 pence per share.
The Group is also pleased to report that operational progress
since the Acquisition is in line with management's expectations and
consistent with its stated strategic and commercial objectives. As
announced on 26(th) November 2015, with effect from 1(st) February
2016, Ian Smith, currently Chairman, will become Chief Executive
Officer to lead the further strategic and operational development
of the Group and John Newman will succeed him as non-executive
Chairman.
Ian Smith, Chairman of 1pm, commented:
"1pm's results for the first six months of the current financial
year continue the trend of profitable growth delivered over recent
years and, although only three months since its Acquisition, the
equally strong results of Academy clearly justify the decision to
expand the Group. Investment in resources at 1pm earlier in 2015
together with the Academy Acquisition completed in August mark the
first successful steps towards achieving our strategic aims. The
Board is committed to delivering sustainable growth and building
value for its shareholders and we look forward to the second half
of the financial year with optimism and confidence".
For further information,
please contact:
1pm plc
Ian Smith, Chairman 01225 474230
Maria Lewis, Chief Operating
Officer 01225 474230
Mike Nolan, Chief Strategic
Officer 01942 408520
WH Ireland (NOMAD)
Mike Coe / Ed Allsopp 0117 945 3470
Walbrook PR 0117 985 8989
Paul Vann 07768 807631
paul.vann@walbrook.com
About 1pm:
The Company was admitted to AIM in August 2006.
1pm plc is an established group of independent finance companies
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.
Mission Statement - 'Helping the UK economy grow by supporting
SMEs'
More information is available on the Company website
www.1pm.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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