Final Results: A Record Financial Performance

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 £3.1m (FY12: £2.31m)

·       Profit before tax up 77.8% to £775k (FY12: £436k)

·       EPS up 70 per cent to 0.0178p (FY12: 0.0104p)

·       Lease portfolio up 34.6 per cent. to £14.8m (FY12: £11.0m)

·       Net assets increased by 15.2 per cent. to £4.56m (FY12: £3.96m) as at 31 May 2013 

·       £1.5m 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 £7.8m (FY12: £4.96m)

·       £4.14m of new funding raised (FY12: £4.1m)

·       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 Maria Hampton, Chief Executive Officer	0844 967 0944 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 £1,000 to- £50,000 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 £3.1m (FY12: £2.31m), with profit before tax increasing by 77.8 per cent. to £0.775m (FY12: £0.436m). 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 £4.56m (FY12: £3.96m).

The lease portfolio has also grown significantly during the year, increasing by 34.5 per cent to £14.8m (FY12: £11.0m). 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 £840k of new business and most recently, in the final month of the financial year, in May 2013 where record sales of £920k were achieved.  

New business written during the year amounted to £7.8m (FY12: £4.96m), 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 £4.14m 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 £1.5m 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

FOR THE YEAR ENDED 31 MAY 2013

	Notes	2013 £	2012 £
CONTINUING OPERATIONS
Revenue	2	3,106,612	2,310,571
Cost of Sales		(1,651,194)	(1,275,253)
GROSS PROFIT		1,455,418	1,035,318
Administrative expenses		(663,179)	(576,542)
OPERATING PROFIT		792,239	458,776
Finance costs		(17,100)	(22,749)
Finance income		148	-
PROFIT BEFORE INCOME TAX	3	775,287	436,027
Income tax		(172,219)	(87,602)
PROFIT FOR THE YEAR		603,068	348,425
Profit attributable to:
Owners of the parent		603,068	348,425
Earnings per share expressed
In pence per share:	4
Basic		0.017760	0.010447
Diluted		0.017760	0.010447

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 MAY 2013

	2013	2012
	£	£
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	40,761	38,621
Deferred tax	-	24,278
	40,761	62,899
CURRENT ASSETS
Trade and other receivables	12,899,718	10,111,880
Cash and cash equivalents	12,894	5,187
	12,912,612	10,117,067
TOTAL ASSETS	12,953,373	10,179,966
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital	2,315,132	2,315,132
Share premium	1,569,340	1,569,340
Retained earnings	679,357	76,289
TOTAL EQUITY	4,563,829	3,960,761
LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables	3,112,199	3,125,473
Financial liabilities - borrowings
Interest bearing loans and borrowings	100,000	100,000
	3,212,199	3,225,473
CURRENT LIABILITIES
Trade and other payables	4,109,327	2,927,418
Financial liabilities - borrowings
Bank overdrafts	520,077	66,314
Interest bearing loans and borrowings	400,000	-
Tax Payable	147,941
		-
	5,177,345	2,993,732
TOTAL LIABILITIES	8,389,544	6,219,205
TOTAL EQUITY AND LIABILITIES	12,953,373	10,179,966

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MAY 2013

	Called up	Retained	Share	Total
	Share	earnings	premium	equity
	capital
	£	£	£	£
Balance at 1 June 2011	2,236,735	(272,136)	1,567,249	3,531,838
Changes in equity
Issue of share capital	78,407	-	2,091	80,498
Total comprehensive income	-	348,425	-	348,425
Balance at 31 May 2012	2,315,132	76,289	1,569,340	3,960,761
Changes in equity
Issue of share capital	-	-	-	-
Total comprehensive income	-	603,068	-	603,068
Balance at 31 May 2013	2,315,132	679,357	1,569,340	4,563,829

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2013

	2013	2012
	£	£
Cash flows from operating activities
Cash generated from operations	(812,142)	3,308
Interest paid	(17,100)	(22,749)
Net cash from operating activities	(829,242)	(19,441)
Cash flows from investing activities
Purchase of tangible fixed assets	(16,962)	(28,289)
Interest received	148	-
Net cash from investing activities	(16,814)	(28,289)
Cash flows from financing activities
New loans in year	400,000	-
Share issue	-	80,498
Net cash from financing activities	400,000	80,498
Increase/(decrease) in cash and cash equivalents	(446,056)	33,768
Cash and cash equivalents at beginning of year	(61,127)	(93,895)
Cash and cash equivalents at end of year	(507,183)	(61,127)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 20132

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.            PROFIT BEFORE INCOME TAX

                The profit before income tax is stated after charging:

	2013	2012
	£	£
Other operating leases	16,020	20,924
Depreciation - owned assets	14,822	19,921
Auditors' remuneration	10,050	9,000
Non audit services	3,450	3,450

4.            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.

	2013	2012
Profit/(Loss) attributable to equity shareholders	£603,068	£348,425
Weighted average number of shares	3,395,618,769	3,335,162,802
Basic and diluted earnings per share	0.017760p	0.010447p

5.            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 2013 or 31 May 2012.

The financial information has been extracted from the statutory accounts of the Company for the years ended 31 May 2013 and 31 May 2012. 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 2012 have been delivered to the Registrar of Companies, whereas those for the year ended 31 May 2013 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

6.            ANNUAL REPORT AND ANNUAL GENERAL MEETING

The Annual Report will be available from the Company's website www.1pm.co.uk from 9th July 2013 and will be posted to shareholders on or before 19 July 2013. The Annual Report contains notice of the Annual General Meeting of the Company which will be held at the Bailbrook House Hotel, Eveleigh Avenue, London Road West Bath BA1 7JD on 16 August 2013 at  12.30p.m.

 

END

 

 

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