LONDON (Alliance News) - 1pm PLC, which finances smaller companies, on Friday praised the contribution of Academy Leading Ltd since it was bought in August, and said both the group and the newly acquired business have performed ahead of management expectations.
Academy, a provider of equipment finance and an equipment and vehicles broker to smaller companies, has, together with 1pm, seen strong demand for finance from customers, across asset finance, business loans and vehicles broking.
Trading results for the six months ended November 30 will show growth in revenue and profit compared with the corresponding half the prior year, 1pm said.
"1pm's results for the first six months of the current financial year continue the trend of profitable growth delivered over recent years and, although only three months since its acquisition, the equally strong results of Academy clearly justify the decision to expand the group," Chairman Ian Smith said in a statement. Smith is due to become the chief executive of 1pm, with non-executive director John Newman to succeed him as chairman.
The group originated GBP9.7 million of new lease and hire purchase contracts during the six months, versus GBP5.8 million the corresponding period the prior year, while business loan originations rose to GBP6.1 million from GBP1.0 million.
Since the acquisition of Academy, the group also earned about GBP200,000 in commission from broked-on lease and hire purchase contracts and GBP300,000 from broked-on vehicle leases, both of which are new revenue streams for 1pm.
As of November 30, the group's combined asset finance and business loans portfolio stood at GBP57.0 million, with GBP39.4 million of that from 1pm and GBP17.6 million at Academy.
1pm funded the growth of its existing operations by increasing its use of the headroom on block funding facilities already in place, raised additional debt funding of GBP2.5 million and reinvested GBP4.5 million of cash flow generated from operations.
Shares in 1pm were up 11% at 71.89 pence on Friday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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