LONDON (Alliance News) - 1pm PLC, which provides financing to smaller companies, on Tuesday said competition is increasing as the lender reported that first-half pretax profit and revenue more than doubled.
"Notwithstanding some recent uncertainty over the global economic outlook, demand within the UK SME sector for our products and services remains strong. Competition is increasing, but we continue to expand our broker network and equipment supplier-base, which has contributed to the significant increase in new lease and hire purchase contracts written in the period," Chairman Ian Smith said in a statement.
Meanwhile, Chief Operating Officer Maria Lewis, who joined 1pm in 2003, will be leaving the group on January 31, the company said.
Pretax profit rose to GBP1.7 million in the six months ended November 30 from GBP762,204 in the corresponding half the prior year, as revenue doubled to GBP5.3 million from GBP2.6 million. Administrative expenses were up to GBP1.6 million from GBP625,977.
Net receivables increased to GBP47.9 million in the half, versus GBP20.4 million in the corresponding period the prior year.
Results included a first contribution from the Academy Leasing business acquired in August 2015. Excluding Academy, which provides equipment finance and acts as an equipment and vehicles broker, 1pm increased its revenue by 48% and its pretax profit by 52% in the period compared with the equivalent period in the previous financial year.
"The results of Academy clearly justify the first step in the planned strategic expansion of the group and give confidence in relation to further expansion plans. The board is committed to delivering sustainable growth and building value for shareholders. Accordingly, the board looks forward to the second half of the financial year with optimism and confidence," Smith said.
1pm paid a maiden dividend of 0.35 pence per share for the financial year ended May 31, 2015, and intends to continue that once-a-year policy.
Shares in 1pm were up 2.2% at 70.00 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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