(Alliance News) - 1PM PLC on Tuesday said it expects to have delivered mid-single-digit revenue and profit growth in its recently ended financial year despite "uncertain business conditions".
The stock was down 16% on Tuesday at 35.20 pence.
The AIM-listed finance provider said it expects to report year-on-year revenue and pretax profit growth of 6% to GBP31.8 million and 4% to GBP8.2 million, respectively, for the year that ended on May 31. In its financial 2018, 1PM recorded pretax profit of GBP7.9 million on revenue of GBP30.0 million.
Aggregate borrowing facilities as at May 31 were GBP167 million, 1PM said, an increase of 2% over the prior year. Net interest margin was maintained at 12% for the year.
The lending portfolio as at the end of May was GBP134 million, compared with GBP142 million in the prior year, with the decrease reflecting the increased proportion of origination brokered-on for commission income.
In January, the company announced strategic and operating growth plans in order to build a lending portfolio of GBP350 million by the end of 2024 financial year. These actions will result in additional costs being incurred in financial year 2020, some of which are non-recurring, 1PM noted.
"In current uncertain business conditions, we are delighted to be reporting year-on-year growth in revenue and underlying profit," said Chief Executive Ian Smith.
"We are determined to deliver our planned further strategic growth in order to increase shareholder value over the next five years and now is the time to lay the foundations for that further growth," added Smith.
1PM will announce its financial results for the year to the end of May on September 24.
