1PM PLC Covid-19 Update (7514H)
March 26 2020 - 10:15AM
UK Regulatory
TIDMOPM
RNS Number : 7514H
1PM PLC
26 March 2020
26 March 2020
1pm plc
("1pm", the "Group" or the "Company")
COVID-19 update
Open for business and supporting UK SMEs
Business impact being proactively managed
1pm plc (AIM: OPM), the AIM listed independent specialist
provider of finance facilities to UK SMEs, provides shareholders
with the following update on measures taken by the Company in
response to COVID-19 and on the current business impact of the
pandemic.
The principles by which the Group is operating in these
unprecedented times are these:
-- a dedicated focus on the health and safety of the Group's employees and their families
-- an uninterrupted seamless service for customer and client transactions
-- unwavering support to viable businesses for which finance solutions have been provided
-- remaining open for new business to support credit-worthy, robust SMEs
The Group is pleased to report that operations are being
effectively and successfully carried out in respect of all four of
these principles, with 190 employees all operating remotely, and
with meaningful support being given to SME borrowers on a daily
basis, providing a "business as usual" service, whilst strictly
following guidelines and advice from Public Health England and the
World Health Organisation. This is a credit to the entire
workforce, whose wellbeing remains of critical importance to the
Group.
Current business impact
As with most businesses operating in the non-bank, specialist
lending sector, the immediate impact of adherence to the
Government's advice is that multiple borrowers are requesting
payment delays, holidays, or similar forbearance as they adjust to
substantially no footfall or sales revenue in their own businesses.
1pm has always dealt with borrowers on a case-by-case basis and is
adhering to this operational principle as the Group handles a large
volume of in-bound requests for support. Payment holidays and the
rescheduling of lease and loan agreements, as well as further
advances within existing facilities to invoice finance clients, are
being agreed on a case by case basis where justified. Such new
arrangements include circumstances where the Company's own lenders,
such as British Business Bank, have agreed to corresponding
forbearance on the Company's own facilities. 1pm intends to
continue to support credit-worthy customers and businesses to
ensure they have the opportunity to resume normal trading at a
future date.
1pm reiterates that it remains open for new business and will
continue to lend, albeit on temporarily tightened and restricted
credit criteria.
Balance sheet strength
Whilst supporting UK SMEs with such forbearance is the right and
proper policy, the risk to 1pm is that its widespread application,
if justified and agreed by the Group, would result in a substantial
constriction of its short term cash inflows from receivables.
However, 1pm has a strong balance sheet, with ample operational
liquidity and covenant headroom, with committed facilities at least
through to the end of this calendar year, and in most cases for
longer, from a number of large UK banks. The Company's lenders are
unanimously supportive of the Group and continue to provide funding
for new business. The Company expects this to continue.
Actions
The Government business and bank funding initiatives announced
to date, whilst extensive and welcomed, do not specifically provide
direct financial support for non-bank specialist lenders like 1pm,
nor do they channel funds to SMEs through non-bank lenders such as
1pm. With non-bank lenders providing one-third of all UK consumer
credit and one-third of UK funding to businesses for investment in
plant, machinery, equipment and software, the Company believes that
this is currently a sector which should be addressed as part of the
Government's business and bank funding initiatives to support UK
SMEs in what are unprecedented times.
1pm, together with other companies in the sector, is actively
lobbying through relevant industry bodies to request changes and
extensions to the Government's funding initiatives in order to
include the non-bank lending sector within them, enabling 1pm, and
the sector as a whole, to provide additional support to UK SMEs
throughout this period of economic uncertainty.
Financial position
1pm has been trading in line with market expectations for the
current financial year through to the end of the third quarter, 29
February 2020. Given the rapidly evolving nature of the pandemic
and the current "lock-down" of the UK, it is not possible to
quantify the impact that COVID-19 may have on the Company's
financial performance in the final quarter of the current financial
year. Furthermore, given the uncertainty over how long these
conditions will prevail, the Company is no longer in a position to
provide guidance on expectations for its financial performance in
the next financial year.
As a consequence of such general and widespread uncertainty,
together with the short-term need to conserve cash resources to
maintain service and in order to give continuing support to UK
SMEs, the Board will defer a decision on the amount and timing of
any final dividend for the current financial year until the market
situation and the effect of COVID-19 have become clearer.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
For further information,
please contact:
1pm plc
Ian Smith, Chief Executive
Officer 01225 474230
James Roberts, Chief Financial
Officer 01225 474230
Cenkos (NOMAD)
Max Hartley / Ben Jeynes
(Nomad)
Julian Morse (Sales) 0207 397 8900
Walbrook PR 0207 933 8780
Paul Vann 07768 807631
paul.vann@walbrookpr.com
About 1pm:
1pm's strategy is to focus on providing or arranging the finance
UK SMEs require to fund their businesses and arranging vehicle and
property-backed finance for consumers. The multi-product range for
SMEs includes asset, vehicle, loan and invoice finance facilities.
The Group operates a "hybrid" lending and broking model enabling it
to optimize business levels through market and economic cycles.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDSEAFLMESSESD
(END) Dow Jones Newswires
March 26, 2020 10:15 ET (14:15 GMT)
Time Finance (LSE:TIME)
Historical Stock Chart
From Jun 2024 to Jul 2024
Time Finance (LSE:TIME)
Historical Stock Chart
From Jul 2023 to Jul 2024