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1pm Regulatory News (OPM)



Regulatory News for 1pm (OPM)


Share Price: 71.50Bid: 70.00Ask: 73.00Change: 0.00 (0.00%)No Movement on 1pm
Spread: 3.00Spread as %: 4.29%Open: 72.50High: 72.50Low: 71.50Yesterday’s Close: 71.50





1PM PLC Final Results

Mon, 16th Jul 2012 07:00

RNS Number : 6500H
1PM PLC
13 July 2012
 

?

 

 

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:  

1pm plc


Mike Johnson, Non-executive Chairman

Maria Hampton, Chief Executive Officer

0844 967 0944

0844 967 0944



WH Ireland (NOMAD)


Mike Coe

Marc Davies

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.

 

 

 

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

 


 


Notes

2012

£

2011

£

CONTINUING OPERATIONS




Revenue

2

2,310,571

1,906,262





Cost of Sales


(1,275,253)

(1,122,283)





GROSS PROFIT


1,035,318

783,979





Administrative expenses


   (576,542)

   (555,357)





OPERATING PROFIT


458,776

228,622


4



Finance costs


(22,749)

(26,444)





Finance income

4

                 -

             52





PROFIT BEFORE INCOME TAX

5

436,027

202,330





Income tax

6

      (87,602)

     48,083)





PROFIT FOR THE YEAR


  348,425

  154,247





Profit attributable to:




Owners of the parent


  348,425

  154,247









Earnings per share expressed




In pence per share:

8



Basic


0.010447

0.00483

Diluted


 0.010447

  0.00483



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 MAY 2012

 


                                                                                                                                         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





                                                                                                                                         62,899                                          142,134





CURRENT ASSETS

Trade and other receivables                              11                                            10,111,880                                       9,289,129

Cash and cash equivalents                                12                                                      5,187                                                  353





                                                                                                                                 10,117,067                                       9,289,482





TOTAL ASSETS                                                                                                        10,179,966                                       9,431,616





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)





TOTAL EQUITY                                                                                                          3,960,761                                       3,531,838





LIABILITIES

NON-CURRENT LIABILITIES

Trade and other payables                                  15                                              3,125,473                                       2,889,474

Financial liabilities - borrowings


Interest bearing loans and borrowings

16

                                                100,000

                                                    -





 

                                                                                                                                    3,225,473                                       2,889,474





CURRENT LIABILITIES

Trade and other payables                                  15                                              2,927,418                                       2,786,056

Financial liabilities - borrowings

   Bank overdrafts                                                 16                                                    66,314                                            94,248


Interest bearing loans and borrowings

16

-

                                     130,000





 

                                                                                                                                    2,993,732                                       3,010,304





TOTAL LIABILITIES                                                                                                    6,219,205                                       5,899,778





TOTAL EQUITY AND LIABILITIES                                                                          10,179,966                                       9,431,616





1 PM PLC

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MAY 2012

 


 

                                                                                                         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









Balance at 31 May 2011                                                         2,236,725             (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









 



CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2012

 


                                                                                                                                         2012                                                  2011

                                                                              Notes                                                     £                                                        £

Cash flows from operating activities

Cash generated from operations                      21                                                      3,308                                        (242,227)

Interest paid                                                                                                                (22,749)                                         (26,444)




Net cash from operating activities                                                                          (19,441)                                       (268,671)




 

Cash flows from investing activities

Purchase of tangible fixed assets                                                                            (28,289)                                         (15,411)

Interest received                                                                                                                      -                                                  152




Net cash from investing activities                                                                           (28,289)                                         (15,259)




 

Cash flows from financing activities

Loan repayments in year                                                                                                        -                                        (120,000)

Share issue                                                                                                                    80,498                                            85,148




Net cash from financing activities                                                                            80,498                                          (34,852)




 

 




 

Increase/(decrease) in cash and cash equivalents

           32,768

                                   (318,782)

Cash and cash equivalents at beginning of year


22


                                                  (93,895)


                                    224,887

 




 

Cash and cash equivalents at end of year

22

                                                  (61,127)

                                   (93,895)

 




 

 



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2012

 


 

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




                                                                                                                                                                    357,589             360,019




 

The average monthly number of employees during the year was as follows:

                                                                                                                                                                       2012                    2011

 

             Management                                                                                                                                         1                           1

             Administrative                                                                                                                                      7                           7




                                                                                                                                                                              8                           8




 

                                                                                                                                                                       2012                    2011

                                                                                                                                                                          £                           £

             Directors' remuneration                                                                                                           187,374             206,143


Directors' pension contributions to money purchase schemes 

              1,050

            1,050

 




 

 

The number of directors to whom retirement benefits were accruing was as follows:

 

             Money purchase schemes                                                                                                                     1                         1




The directors' aggregate emoluments in respect of qualifying services were:


        2012

        2011

 

£


£


 

M Johnson


     43,742

      65,000

M Hampton


     70,000

     70,000

H Walker


      47,087

      46,143

R Channon


      16,168

      15,000

R Russell


      10,377

      10,000





 

                                                                                                                                                       187,374             206,143





 

4.          NET FINANCE COSTS

                                                                                                                                                                       2012                    2011

                                                                                                                                                                          £                           £

             Finance income:

             Bank account interest                                                                                                                             -                     152




             Finance costs:

             Bank interest                                                                                                                                 11,535                 7,540

             Bank loan interest                                                                                                                        11,214               18,904




                                                                                                                                                                       22,749               26,444




 

             Net finance costs                                                                                                                          22,749               26,292




 

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




 

6.          INCOME TAX

 

             Analysis of tax expense

                                                                                                                                                                       2012                    2011

                                                                                                                                                                          £                           £

             Deferred tax                                                                                                                                   87,602               48,083

 




 


Total tax expense in consolidated income statement

            87,602

         48,083

 




 

 

             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

                                                                                                                                                                          £                           £


Profit on ordinary activities before income tax

        436,027

       202,330

 




 

             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:


Capital allowances in excess of depreciation 

                   (2,545)

              (144)


Unused trading losses  

                    2,942

            5,738

 




 

             Tax expense                                                                                                                                   87,602               48,083




 

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.

 


2012

2011

 

Profit/(Loss) attributable to equity shareholders


        £348,425

           £154,247





 

 

Weighted average number of shares


 3,335,162,802

3,195,491,908





 

 

Basic and diluted earnings per share


0.010447p

0.004827p





 

 

9.          PROPERTY, PLANT AND EQUIPMENT

 

             Group

                                                                                                                                                                                             Computer

                                                                                                                                                                                           equipment

                                                                                                                                                                                                        £

             COST

             At 1 June 2011                                                                                                                                                        147,302

             Additions                                                                                                                                                                   28,289



             At 31 May 2012                                                                                                                                                      175,591



             DEPRECIATION

             At 1 June 2011                                                                                                                                                        117,049


Charge for year

         19,921

 

 



             At 31 May 2012                                                                                                                                                      136,970



             NET BOOK VALUE

             At 31 May 2012                                                                                                                                                        38,621



             At 31 May 2011                                                                                                                                                        30,253



 

            

 

 

 

 

 

 

 

Group

 



Computer equipment

             £

COST

At 1 June 2010



        131,891

Additions



           15,411



 

At 31 May 2011



       147,302



 

 

DEPRECIATION

At 1 June 2010



         95,413

Charge for year



         21,636



 

At 31 May 2011



      117,049



 

NET BOOK VALUE

At 31 May 2011



        30,253



 

 

 

Equipment held under finance leases and hire purchase contracts, included in the relevant heading in the above table are:

 


2012

2011

 

£


£


 

Cost at 1 June 2011 and 31 May 2012


          10,142

          10,142





 

 

Depreciation at 1 June


              9,158

           6,622

Charge


                 984

           2,536





 

At 31 May


           10,142

            9,158





 

 

Net book value


                   0

              984





 

 

10.        INVESTMENTS

 

             Company

                                                                                                                                                                                               Shares in

                                                                                                                                                                                                     group

                                                                                                                                                                                        undertakings

                                                                                                                                                                                                        £

             COST

             At 1 June 2011

             and 31 May 2012                                                                                                                                                     50,000



             NET BOOK VALUE

             At 31 May 2012                                                                                                                                                        50,000



             At 31 May 2011                                                                                                                                                        50,000



 



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




 

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                            -                          -









                                                                                                   10,111,880           9,289,129           3,829,285         3,883,621









 

Trade receivables wholly represent finance lease receivables.

 


2012

2011

Gross receivables from finance leases:


£


£


No later than 1 year


       4,766,707

      4,411,197

Later than 1 year and no later than 5 years


      7,360,275

     6,885,757

Later than 5 years


                     0

                    0

Unearned future finance income on finance leases


    (2,607,704)

   (2,544,412)





 

Net investment in finance leases


     9,519,278

   8,752,542





 

 

The net investment in finance leases are receivable as follows:

No later than 1 year


     3,284,029

    2,927,584

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








 

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:




No. of shares

Ordinary shares

Share Premium


Total


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:




No. of shares

Nominal Value


Total


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
The company news service from the London Stock Exchange
 
END
 
 
FR GGUGAMUPPGPW


Related Shares: 1pm (OPM).




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