6 Dec 2017 07:00
6 December 2017
1pm plc
(the "Group" or the "Company")
Trading Update
Strong trading momentum maintained: revenue and profit up by more than 70% in the first half.
1pm plc, the AIM listed independent specialist provider of finance facilities to the SME sector, is pleased to provide the following trading update ahead of its interim results for the six-month period ended on 30 November 2017 (the "Interim Results"), which will be announced during the week commencing 15th January 2018.
The Interim Results will demonstrate the success of the Group's buy-and-build strategy that has been a cornerstone of its development during the last two years and will, for the first time, consolidate the results of all the entities acquired in 2017, namely Gener8 Finance, Positive Cashflow Finance, Intelligent Financing and Bell Finance.
The Interim Results will:
· record revenue of approximately £13.8m, an increase of 73% compared with £8.0m in the comparable prior year period
· show profit before tax and exceptional items of approximately £3.5m, an increase of 75% when compared with £2.0m in the comparable prior year period
· present net write-offs in the period as continuing to be less than 1% of the gross portfolio
Both revenue and profit before tax and exceptional items are consistent with market expectations for the full year ending 31 May 2018. They reflect both organic growth at each of the businesses included in the comparable prior period results, namely Onepm Finance, Academy Leasing and Bradgate Business Finance, and strategic growth from the more recently acquired entities.
Each of the Group's three divisions are trading in line with managements' plans, reflecting continuing strong demand from SMEs for the Group's expanding range of finance products, namely plant, equipment and vehicles through the Asset Finance division, working capital and property-backed loans through the Loans division and invoice financing through the Commercial Finance division.
With the strong demand experienced in the first half of the year, and to fund further growth, the Group has negotiated new funding facilities at competitive rates with existing funding partners. These new facilities in aggregate total £53.3m, an increase of £12.8m on previous facilities.
The Group is also making significant progress in respect of its core integration projects for the current financial year, which include improving its net interest margin through reducing the cost of borrowings; improving digital capability through the harmonisation of systems and use of FinTech; and capitalising on multiple cross-selling opportunities from the range of SME financing products now offered.
Ian Smith, Chief Executive Officer, commented:
"The recent rapid expansion of the Group reflects our chosen strategy of being a multi-product provider of finance to a wide-range of SME sectors, achieving significant growth whilst simultaneously maintaining price, controlling credit and spreading risk. The Interim Results will demonstrate the successful implementation of that strategy and we are delighted with the strategic and operational progress to date."
For further information, please contact: |
|
|
|
1pm plc |
|
Ian Smith, Chief Executive Officer | 01225 474230 |
James Roberts, Chief Financial Officer | 01225 474230 |
|
|
Cenkos (NOMAD) |
|
Max Hartley (NOMAD), Julian Morse (Sales) | 0207 397 8900 |
|
|
Walbrook PR | 0117 985 8989 |
Paul Vann | 07768 807631 |
| paul.vann@walbrookpr.com |
About 1pm:
The Company was admitted to AIM in August 2006.
1pm plc is a group of established independent finance companies focused on providing SMEs with accessible funding to add value to their businesses. All customers must have good credit histories and proven ability to repay their finance commitments.
Mission Statement - 'Helping the UK economy grow by supporting SMEs'
More information is available on the Company website www.1pm.co.uk