LONDON (Alliance News) - 1pm PLC Friday said it expects to revenue in the recently-ended financial year to meet targets but said its adjusted pretax profit will be "materially ahead" of market expectations.
The commercial finance provider said both revenue and profit will be higher in the financial year to the end of May compared to a year earlier after experiencing strong organic growth alongside strategic growth through its acquisition of Academy Leasing Ltd and Bradgate Business Finance Ltd during the year.
Whilst adjusted pretax profit will beat expectations, revenue will be in line with what the market is anticipating, 1pm said.
"Each of the group's trading subsidiaries, 1pm, Academy and Bradgate, continued to experience high levels of demand for finance from the small and medium sized enterprise sector across the range of products offered, being asset finance (finance lease and hire purchase) for 'hard' and 'soft' assets, business loans and vehicles broking," said the company.
In the previous financial year, 1PM reported revenue of GBP5.5 million and a pretax profit, which is not adjusted, of GBP1.6 million. They were both up compared to the year before.
1pm said the total value of asset finance and loan deals during the recently-ended financial year was GBP31.0 million. In addition, Academy and Bradgate have generated commission income to add another GBP7.8 million of asset finance deals.
At the end of May, 1pm's combined asset finance and business loan portfolio stood at GBP66.5 million. Of that total, GBP41.8 million is booked in 1pm, a 39% year-on-year rise, whilst Academy holds GBP21.0 million and Bradgate GBP3.7 million.
"The group is also pleased to report that operational progress at each of the Group's subsidiaries since the acquisitions is in line with management's expectations and consistent with its objectives," said 1pm.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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