1PM PLC Final Results
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 £2.31m (FY11: £1.91m)
· Profit before tax of £436k (FY11: £202k)
· Bad Debts and Provisions down to £0.18m (FY11: £0.19m)
· Lease portfolio up 8.9% to £11.0m (FY11: £10.1m)
· 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 £69k (FY11: £94k)
· Increased number of partnerships formed with leasing brokers
· Increased lend from £30,000 to £50,000 since January 2012
· Range of assets financed widened to include commercial vehicles
· £4.1m of new funding raised (FY11: £2.2m)
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:
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1pm plc |
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Mike Johnson, Non-executive Chairman Maria Hampton, Chief Executive Officer |
0844 967 0944 0844 967 0944 |
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WH Ireland (NOMAD) |
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Mike Coe Marc Davies |
0117 945 3470 |
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Winningtons Financial PR |
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Paul Vann/Tom Cooper |
0117 985 8989 |
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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 £1,000 to- £50,000 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 £2.31m (FY11: £1.91m) with profit before tax more than doubling to £436,000 (FY11: £202,000). 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 £3.96m (FY11: £3.53m), 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 £11.0m (FY11: £10.1m) has an average loan value of £6.9k (FY11: £7.3k) 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 £0.18m (FY11: £0.19m) 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 £69k (FY11: £94k) 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 £4.96m (FY11: £6.1m). 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 £700k.
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 £30,000 to £50,000, 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 £4.1m of new funding (FY11: £2.2m).
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
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Notes |
2012 £ |
2011 £ |
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CONTINUING OPERATIONS |
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|
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Revenue |
2 |
2,310,571 |
1,906,262 |
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|
|
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Cost of Sales |
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(1,275,253) |
(1,122,283) |
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GROSS PROFIT |
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1,035,318 |
783,979 |
|
|
|
|
|
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Administrative expenses |
|
(576,542) |
(555,357) |
|
|
|
|
|
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OPERATING PROFIT |
|
458,776 |
228,622 |
|
|
4 |
|
|
|
Finance costs |
|
(22,749) |
(26,444) |
|
|
|
|
|
|
Finance income |
4 |
- |
52 |
|
|
|
|
|
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PROFIT BEFORE INCOME TAX |
5 |
436,027 |
202,330 |
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|
|
|
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Income tax |
6 |
(87,602) |
48,083) |
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|
|
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PROFIT FOR THE YEAR |
|
348,425 |
154,247 |
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|
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Profit attributable to: |
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Owners of the parent |
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348,425 |
154,247 |
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|
|
|
|
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Earnings per share expressed |
|
|
|
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In pence per share: |
8 |
|
|
|
Basic |
|
0.010447 |
0.00483 |
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Diluted |
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0.010447 |
0.00483 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 MAY 2012
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2012 2011
Notes £ £
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 9 38,621 30,253
Investments 10 - -
Deferred tax 18 24,278 111,881
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62,899 142,134
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CURRENT ASSETS
Trade and other receivables 11 10,111,880 9,289,129
Cash and cash equivalents 12 5,187 353
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10,117,067 9,289,482
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TOTAL ASSETS 10,179,966 9,431,616
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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)
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TOTAL EQUITY 3,960,761 3,531,838
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LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables 15 3,125,473 2,889,474
Financial liabilities - borrowings
|
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Interest bearing loans and borrowings |
16 |
100,000 |
- |
||||
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|
|
|
|
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3,225,473 2,889,474
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|
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CURRENT LIABILITIES
Trade and other payables 15 2,927,418 2,786,056
Financial liabilities - borrowings
Bank overdrafts 16 66,314 94,248
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Interest bearing loans and borrowings |
16 |
- |
130,000 |
||||
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2,993,732 3,010,304
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TOTAL LIABILITIES 6,219,205 5,899,778
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TOTAL EQUITY AND LIABILITIES 10,179,966 9,431,616
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1 PM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2012
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Called up Profit
share and loss Share Total
capital account premium equity
£ £ £ £
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
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Balance at 31 May 2011 2,236,725 (272,136) 1,567,249 3,531,838
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Changes in equity
Issue of share capital 78,407 - 2,091 80,498
Total comprehensive income - 348,425 - 348,425
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Balance at 31 May 2012 2,315,132 76,289 1,569,340 3,960,761
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2012
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2012 2011
Notes £ £
Cash flows from operating activities
Cash generated from operations 21 3,308 (242,227)
Interest paid (22,749) (26,444)
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Net cash from operating activities (19,441) (268,671)
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Cash flows from investing activities
Purchase of tangible fixed assets (28,289) (15,411)
Interest received - 152
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Net cash from investing activities (28,289) (15,259)
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Cash flows from financing activities
Loan repayments in year - (120,000)
Share issue 80,498 85,148
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Net cash from financing activities 80,498 (34,852)
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Increase/(decrease) in cash and cash equivalents |
32,768 |
(318,782) |
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Cash and cash equivalents at beginning of year |
|
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Cash and cash equivalents at end of year |
22 |
(61,127) |
(93,895) |
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2012
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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
£ £
Wages and salaries 335,584 338,866
Social security costs 20,297 20,103
Other pension costs 1,708 1,050
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357,589 360,019
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The average monthly number of employees during the year was as follows:
2012 2011
Management 1 1
Administrative 7 7
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8 8
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2012 2011
£ £
Directors' remuneration 187,374 206,143
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Directors' pension contributions to money purchase schemes |
1,050 |
1,050 |
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The number of directors to whom retirement benefits were accruing was as follows:
Money purchase schemes 1 1
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The directors' aggregate emoluments in respect of qualifying services were:
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2012 |
2011 |
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£ |
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£ |
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M Johnson |
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43,742 |
65,000 |
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M Hampton |
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70,000 |
70,000 |
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H Walker |
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47,087 |
46,143 |
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R Channon |
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16,168 |
15,000 |
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R Russell |
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10,377 |
10,000 |
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187,374 206,143
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4. NET FINANCE COSTS
2012 2011
£ £
Finance income:
Bank account interest - 152
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Finance costs:
Bank interest 11,535 7,540
Bank loan interest 11,214 18,904
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22,749 26,444
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Net finance costs 22,749 26,292
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5. PROFIT BEFORE INCOME TAX
The profit before income tax is stated after charging:
2012 2011
£ £
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
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6. INCOME TAX
Analysis of tax expense
2012 2011
£ £
Deferred tax 87,602 48,083
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Total tax expense in consolidated income statement |
87,602 |
48,083 |
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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
£ £
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Profit on ordinary activities before income tax |
436,027 |
202,330 |
||||
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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:
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Capital allowances in excess of depreciation |
(2,545) |
(144) |
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Unused trading losses |
2,942 |
5,738 |
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Tax expense 87,602 48,083
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Corporation tax is calculated at 20% (2011: 21%) of estimated assessable profit for the year. The tax expense of £87,602 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 £0 (2011 - £0).
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.
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2012 |
2011 |
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Profit/(Loss) attributable to equity shareholders |
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£348,425 |
£154,247 |
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Weighted average number of shares |
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3,335,162,802 |
3,195,491,908 |
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Basic and diluted earnings per share |
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0.010447p |
0.004827p |
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9. PROPERTY, PLANT AND EQUIPMENT
Group
Computer
equipment
£
COST
At 1 June 2011 147,302
Additions 28,289
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At 31 May 2012 175,591
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DEPRECIATION
At 1 June 2011 117,049
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Charge for year |
19,921 |
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At 31 May 2012 136,970
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NET BOOK VALUE
At 31 May 2012 38,621
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At 31 May 2011 30,253
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Group
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Computer equipment |
£
COST
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At 1 June 2010 |
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131,891 |
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Additions |
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15,411 |
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At 31 May 2011 |
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147,302 |
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DEPRECIATION
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At 1 June 2010 |
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95,413 |
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Charge for year |
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21,636 |
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At 31 May 2011 |
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117,049 |
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NET BOOK VALUE
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At 31 May 2011 |
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30,253 |
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Equipment held under finance leases and hire purchase contracts, included in the relevant heading in the above table are:
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2012 |
2011 |
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£ |
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£ |
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Cost at 1 June 2011 and 31 May 2012 |
|
10,142 |
10,142 |
||
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Depreciation at 1 June |
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9,158 |
6,622 |
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Charge |
|
984 |
2,536 |
||
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At 31 May |
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10,142 |
9,158 |
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Net book value |
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0 |
984 |
||
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10. INVESTMENTS
Company
Shares in
group
undertakings
£
COST
At 1 June 2011
and 31 May 2012 50,000
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NET BOOK VALUE
At 31 May 2012 50,000
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At 31 May 2011 50,000
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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
£ £
Aggregate capital and reserves 126,289 (222,136)
Profit for the year 348,425 154,247
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11. TRADE AND OTHER RECEIVABLES
Group Company
2012 2011 2012 2011
£ £ £ £
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 - -
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10,111,880 9,289,129 3,829,285 3,883,621
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Trade receivables wholly represent finance lease receivables.
|
|
2012 |
2011 |
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Gross receivables from finance leases: |
|
£ |
|
£ |
|
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No later than 1 year |
|
4,766,707 |
4,411,197 |
||
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Later than 1 year and no later than 5 years |
|
7,360,275 |
6,885,757 |
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Later than 5 years |
|
0 |
0 |
||
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Unearned future finance income on finance leases |
|
(2,607,704) |
(2,544,412) |
||
|
|
|
|
|
|
|
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Net investment in finance leases |
|
9,519,278 |
8,752,542 |
||
|
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|
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The net investment in finance leases are receivable as follows:
|
No later than 1 year |
|
3,284,029 |
2,927,584 |
||
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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 £4,958,694 (2011: £6,105,899).
Included within Trade receivables are the following receivables that are past due but not impaired as they are considered recoverable:
|
|
2012 |
2011 |
|||
|
|
£ |
|
£ |
|
|
|
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 £181,833 (2011: £188,131).
12. CASH AND CASH EQUIVALENTS
Group Company
2012 2011 2012 2011
£ £ £ £
Bank accounts 5,187 353 5,187 353
|
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|
|
|
|
|
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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 shares |
Share Premium |
|
|||
|
|
No. |
£ |
|
£ |
|
£ |
|
|
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 Value |
|
|||
|
|
No. |
£ |
|
£ |
|
|
|
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 £0.0006818 at £0.0007 per share.
The funds raised were used in 1 PM (UK) Limited to finance continuing operations.
14. RESERVES
Group
Retained Share
earnings premium Totals
£ £ £
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
£ £ £
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
£ £
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
£ £ £ £
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
£ £ £
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 |
||
|
|
£ |
|
£ |
|
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 £50,000.
17. LEASING AGREEMENTS
Group
Non-cancellable
operating leases
2012 2011
£ £
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 |
||
|
|
|
£ |
|
£ |
Minimum lease payments:
|
No later than one year |
|
0 |
643 |
||
|
Later than one year and no later than five years |
|
0 |
0 |
||
|
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
£ £
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 |
||
|
|
£ |
|
£ |
|
|
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 £100,000 (2011: £350,000), Hitachi Capital Limited of £1,000,000, Venture Finance of £500,000, and Close Asset Finance Limited of £750,000. 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 |
||
|
|
£ |
|
£ |
|
|
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 |
||
|
|
£ |
|
£ |
|
|
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 £800,000, interest is charged at 11%. The gross amount of £992,467 is repayable in forty eight monthly payments. The amount repayable in the year was £248,117 (net £174,509). The total amount outstanding at the year end was £661,645. Interest in the sum of £73,608 (2011: £31,546) accrued in the year. No amounts were written off during the year.
S Russell (R Russell's spouse) loaned the company £300,000, on which interest in the sum of £20,967 accrued in the year.
H Walker and J Bower (H Walker's partner) each loaned the company £50,000, on which interest in the sum of £2,479 and £2,125 respectively accrued in the year.
20. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Group
2012 2011
£ £
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
£ £
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
£ £
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
£ £
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
£ £ £ £
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
£ £ £ £
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 £350,000 (2011: £350,000).
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
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