12 Jan 2012 07:00
1pm plc
("1pm" or the "Company")
INTERIM CONSOLIDATED RESULTS
FOR THE 6 MONTHS ENDED 30 NOVEMBER 2011
The Board of 1pm, the AIM quoted independent provider of asset finance facilities to the SME sector, announces today its independently reviewed interim results for the six month period to 30 November 2011.
Financial Highlights
·; Revenue for the period increased 31% to £1,151,331 (H1 2011: £880,175)
·; Profit before taxation increased 238% to £214,293 (H1 2011: £63,440) (FY 2011: £202,330)
·; Earnings per share up 172% to 0.005p (H1 2011: 0.002p) (FY 2011: 0.005p)
·; Net receivables increased 14.6% to £9,856,426 (H1 2011: £8,599,435)
·; Total lease portfolio increased to £10.85 million (H1 2011: £9.19 million)
Operational Highlights
·; Bad debt provisions and write-offs as a percentage of the total lease portfolio has decreased further and now well below management expectations
·; Moved to new premises with enough capacity for medium-term growth expectations
·; New website launched disclosing preferred financial terms
For further information, please contact:
1pm plc | www.1pm.co.uk |
Mike Johnson, Chairman Maria Hampton, Managing Director | 0844 967 0944 0844 967 0944 |
WH Ireland (NOMAD) | |
Mike Coe Marc Davies | 0117 945 3470 |
Walbrook PR Ltd | 020 7933 8780 |
Helen Westaway | helen.westaway@walbrookpr.com |
Paul Cornelius | paul.cornelius@walbrookpr.com |
About 1pm plc
1pm plc is an established small ticket leasing company focused on providing SMEs with an accessible funding pool. Customers must have clear credit histories and an ability to pay their commitments. Assets leased are business critical. 1pm typically lends between £1,000 - £40,000 for between 12 and 60 months.
CHAIRMAN'S STATEMENT
I am pleased to report the results for the six months to 30 November 2011 and am delighted to confirm that the lease portfolio and Company balance sheet are still growing. As a result of the continued increase in profitability the profit before tax for the first six months trading has exceeded the full year's results to 31 May 2011.
Operating review
During the six-month period the Company wrote £2.59 million of new leases and the total lease portfolio increased to £10.85 million. The bad debt provisions and writes-offs as a percentage of the lease portfolio have decreased and are well below management's expectations.
Bank borrowing still remains difficult to obtain for many SME businesses and the implication for 1pm is continued demand for its leasing facilities. The market in general has seen a slight downturn over the last four months; however the Company has seen improvement during December and January.
During October the Company re-launched its website in order to improve its service to its customers and leasing brokers. The Company hopes you find the new design easy to navigate and the content informative. www.1pm.co.uk
The management team regularly reviews its lending procedures and policies. Two new changes are about to be implemented. First, the Company is to increase its maximum lending amount for established businesses from £30,000 to £40,000. Secondly it is expanding its lending to cover Northern Ireland having received numerous enquiries from leasing brokers. The Board will continue to assess market demand and adjust its operations accordingly.
Financing
During the trading period, the Company agreed an increase in an existing funding facility of £1 million , which will support the continued growth of the lease portfolio.
New business continues to be partially funded internally using surplus cash generated by the business. In broad terms as the 1pm lease portfolio grows, so does the amount of cash available to reinvest in the business.
To be included in the Investor Section of the 1pm website, from the afternoon of the 12 January 2012, will be details of the terms on which 1pm is typically prepared to deal with individual debt funders or SIPP funds, who approach 1pm and express an interest in providing funding to 1pm. A highly competitive fixed rate of return of up to 9.25%, depending on the amount borrowed, on the basis of individually negotiated secured loan terms, will typically be available. Please see the 1pm website for more details.
The Company has sufficient cash for its current requirements and is confident that further funding lines will be available if required. Cash is 1pm's raw material, the more it has available the more it can lend on to customers, thus increasing profits and earnings per share.
Outlook
During December the Company relocated to larger premises in Bath. 1pm has sole occupancy of the office which has sufficient capacity to facilitate continued growth.
1pm is continuing to expand its leasing broker network across the UK and the Company is looking forward to lending in Northern Ireland.
The Company has now been profitable for 18 consecutive months and with funding in place for 2012 the directors are confident that this will continue. The board believes that 1pm has excellent growth prospects for 2012, even in these uncertain economic times, and is constantly exploring new ways to deliver this.
M R Johnson
Chairman, 1pm plc
Independent Review Report to 1 pm plc
Introduction
We have been instructed by the company to review the financial information set out on pages 4 to 8 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the rules of the London Stock Exchange for companies trading securities on AIM, a market operated by the London Stock Exchange plc. The Disclosure and Transparency Rules require that the accounting policies and presentation applied to the half yearly figures must be consistent with those applied in the latest published annual accounts except where the accounting policies and presentation are to be changed in the subsequent annual financial statements, in which case the new accounting policies and presentation should be followed, and the change and the reasons for the changes should be disclosed in the half yearly financial report. The condensed set of financial statements included in this half yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting".
Our responsibility
Our responsibility is to express a conclusion on the condensed set of financial statements in the half yearly financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information performed by the Independent Auditor of the Entity," issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group management and applying analytical and other review procedures to the financial information. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half yearly financial report for the six months ended 30 November 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34.
Moore StephensRegistered AuditorsChartered Accountants30 Gay Street Bath BA1 2PA
12th January 2012
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months to 30 November 2011
Independently Reviewed 6 months to 30 November 2011 | Independently Reviewed 6 months to 30 November 2010 | Audited 12 months to 31 May
2011 | |
Note | £ | £ | £ |
REVENUE | 1,151,331 | 880,175 | 1,906,262 |
Cost of sales | (639,133) | (523,596) | (1,122,283) | |
GROSS PROFIT |
| 512,198 | 356,579 | 783,979 |
Administrative expenses | (285,885) | (278,928) | (555,357) | |
OPERATING PROFIT/(LOSS) | 226,313 | 77,651 | 228,622 |
Finance income | - | 152 | 152 | |
Finance expense | (12,020) | (14,363) | (26,444) | |
PROFIT / (LOSS) BEFORE TAXATION |
214,293 |
63,440 |
202,330 |
Tax expense | (42,829) |
(12,688) |
(48,083) | |
PROFIT / (LOSS) ON AFTER TAXATION | 171,464
| 50,752 | 154,247 |
Attributable to equity holders of the company | 171,464 | 50,752 | 154,247 | |
Profit per share attributable to the equity holders of the company during the Period | ||||
- basic and diluted | 5 | 0.005227p | 0.001924p | 0.0048p |
All of the above amounts are in respect of continuing operations.
CONSOLIDATED INTERIM CASH FLOW STATEMENT
for the six months to 30 November 2011
Independently Reviewed as at 30 November 2011 | Independently Reviewed as at 30 November 2010 |
Audited 12 months as at 31 May 2011 | ||
£ | £ | £ | ||
| ASSETS | ||||
| NON CURRENT ASSETS |
Deferred income taxes Property, plant and equipment | 111,881 | 147,276 | 111,881 | |
36,701 | 25,741 | 30,253 | ||
148,582 | 173,017 | 142,134 | ||
CURRENT ASSETS | ||||
Cash at bank and in hand | 15,638 | 8,465 | 353 | |
Trade and other receivables | 9,856,426 | 8,599,435 | 9,289,129 | |
TOTAL CURRENT ASSETS | 9,872,064 | 8,607,900 | 9,289,482 | |
TOTAL ASSETS | 10,020,646 | 8,780,917 | 9,431,616 | |
EQUITY
Share capital | 2,236,725 | 2,153,791 | 2,236,725 | |
Share premium account | 1,567,249 | 1,565,035 | 1,567,249 | |
Retained earnings | (100,672) | (375,631) | (272,136) | |
TOTAL EQUITY | 3,703,302 | 3,343,195 | 3,531,838 | |
LIABILITIES | ||||
CURRENT LIABILITIES | ||||
Trade and other payables | 3,250,026 | 3,023,065 | 3,010,304 | |
NON CURRENT LIABILITIES | ||||
Trade and other payables |
| 3,067,318 | 2,414,657 | 2,889,474 |
TOTAL LIABILITIES | 6,317,344 | 5,437,722 | 5,899,778 | |
TOTAL EQUITY AND LIABILITIES | 10,020,646 | 8,780,917 | 9,431,616 |
CONSOLIDATED INTERIM CASH FLOW STATEMENT
for the six months to 30 November 2011
|
Independently Reviewed 6 months to 30 November 2011 | Independently Reviewed 6 months to 30 November 2010 |
Audited 12 months to 31 May 2011 | ||
£ | £ | £ | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Consumed by operations | (87,718) | (457,053) | (242,227) | ||
Taxation | - | - | - | ||
Net cash generated from operating activities | (87,718) | (457,053) | (242,227) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Interest received | - | 152 | 152 | ||
Finance expense | (12,020) | (14,363) | (26,444) | ||
Purchase of property, plant and equipment | (17,139) | (1,820) | (15,411) | ||
Net cash generated from investing activities | (29,159) | (16,031) | (41,703) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Term loans Issue of shares net of costs | 50,000 - | (60,000) - | (120,000) 85,148 | ||
Net cash generated from financing activities | 50,000 | (60,000) | (34,852) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS |
(66,877) |
(533,084) |
(318,782) | |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD |
(93,895) |
224,887 |
224,887 | |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
(160,772) |
(308,197) |
(93,895) | |
STATEMENTS OF CHANGES IN EQUITY
Share Capital | Share Premium | Retained Earnings | Total Equity |
| |
| |||||
| |||||
Balance at 31 May 2011 | 2,236,725 | 1,567,249 | (272,136) | 3,531,838
|
|
Movement in share capital | - | - | - | - |
|
Profit for period | - | - | 171,464 | 171,464 |
|
| |||||
Balance at 30 November 2011 | 2,236,725 | 1,567,249 | (100,672) 3,703,302 | ||
| |||||
| |||||
Balance at 30 November 2010 | 2,153,791 | 1,565,035 | (375,631) | 3,343,195 |
|
Movement in share capital | 82,934 | 2,214 | - | 85,148 |
|
Profit /(loss) for the period | - | - | 103,495 | 103,495 |
|
| |||||
Balance at 31 May 2011 | 2,236,725 | 1,567,249 | (272,136) 3,531,838 | ||
| |||||
| |||||
1 BASIS OF PREPARATION
The financial information set out in the interim report does not constitute statutory accounts as defined in section 434(3) and 435(3) of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 May 2011 prepared in accordance with IFRS as adopted by the European Union and with the Companies Act 2006 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006.
These interim financial statements have been prepared under the historical cost convention.
These interim financial statements have been prepared in accordance with the accounting policies set out in the most recently available public information, which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 31 May 2011 or are expected to be adopted and effective at 31 May 2012, The financial information for the six months ended 30 November 2010 and the six month period 30 November 2011 are unaudited and do not constitute the groups statutory financial statements for these periods. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.
2 BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (it's subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefit from its activities.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
3 TAXATION
Taxation charged for the period ended 30 November 2011 is calculated by applying the directors' best estimate of the annual tax rate to the result for the period.
4 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.
As at 30 November 2011, the company had an issued and fully paid share capital of 3,280,618,771.
5 EARNINGS PER ORDINARY SHARE
The earnings per ordinary share has been calculated using the profit for the period and the weighted average number of ordinary shares in issue during the period as follows:
| Six months to 30 November 2011 | |||
£ | ||||
Profit/(loss) for the period after taxation | 171,464 | |||
Number | ||||
Basic weighted average of ordinary shares | 3,280,618,771 | |||
Pps | ||||
Basic earnings (pence per share) |
| 0.005227 |
The basic earnings per share is calculated on the weighted average number of shares in issue during the period.
6 COPIES OF THE INTERIM REPORT
Copies of the interim report are available from www.1pm.co.uk and the company secretary at the company's registered office: 15 St James's Parade, Bath, BA1 1UL.