Trading Update: Strong Growth in Revenue & Profits
8 July 2016
1pm plc
(the "Group" or "the Company")
Trading Update
"Strong trading momentum maintained; profitable organic and strategic growth"
1pm plc (AIM: OPM), the AIM listed independent specialist provider of finance facilities to the SME sector, is pleased to announce the following trading update ahead of the publication of its final results for the year ended 31 May 2016, which are scheduled to be announced during the week commencing 5 September 2016.
The trading results for the year ended 31 May 2016 will show strong growth in revenue and profits compared with the prior year. Revenue for the Group will be in line with current market expectations and adjusted profit before tax for the Group will be materially above current market expectations.
The trading results reflect strong organic growth at 1pm (UK) Limited ("1pm") plus strong strategic growth from the acquisitions of Academy Leasing Limited ("Academy"), acquired on 25 August 2015 and Bradgate Business Finance Limited ("Bradgate"), acquired on 22 March 2016.
Each of the Group's trading subsidiaries, 1pm, Academy and Bradgate, continued to experience high levels of demand for finance from the SME 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. The total value of asset finance and loan deals originated and funded by the Group in the year to 31 May 2016 amounted to £31.0m. In addition, since their respective dates of acquisition Academy and Bradgate generated commission income from broking-on a further £7.8m of asset finance deals.
As at 31 May 2016, the Group's combined asset finance and business loans portfolio stood at £66.5m. This comprised £41.8m (2015: £30.0m) at 1pm, an increase of 39 per cent.; £21.0m at Academy and £3.7m at Bradgate.
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.
Ian Smith, CEO, commented:
"We are delighted that the Group's results for the financial year continued the trend of profitable organic growth over recent years at 1pm and delivered the anticipated benefits of strategic growth through selective acquisitions. Investment in resources at 1pm early in 2015 to enable organic growth, together with the Academy and Bradgate acquisitions completed during the financial year mark the first successful steps towards achieving our stated strategic aims.
The Board is committed to delivering sustainable growth and building value for its shareholders. In spite of recent economic uncertainties the Board remains cautiously optimistic in its pursuit of further organic and strategic growth in the current financial year."
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For further information, please contact: |
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1pm plc |
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Ian Smith, CEO |
01225 474230 |
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Helen Walker, Chief Financial Officer |
01225 474230 |
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WH Ireland (NOMAD) |
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Mike Coe / Ed Allsopp |
0117 945 3470 |
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Walbrook PR |
0117 985 8989 |
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Paul Vann |
07768 807631 |
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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
This information is provided by RNS
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