2 August 2006
("1pm" or the "Company")
ADMISSION TO AIM
· 1pm plc is a specialist asset finance provider within the high growth Sub-
· Dealings on AIM commence today
· £1.3 million (before expenses) raised via a Placing of approximately 44% of
the Company's issued share capital. This represents all new money as none of the
directors is selling shares
· 1pm began trading in 2001 and was founded by Tony Williams and John
Stickley, who between them have 50 years' experience in asset finance and
· The Company has shown rapid organic growth and by the year ended 31 May
2006 delivered a record pre-tax profit of £240,248, up 87.7% on the previous
year, with its leased asset turnover up to £2.1 million
· The proceeds of the funding will provide the Company with additional
working capital, which it will use to address the significant growth
opportunities that exist in its target markets
· The Company's Nominated Adviser is ARM Corporate Finance, with SVS
Securities acting as Broker
John Stickley, joint Managing Director of 1pm commented:
"We believe that there are significant opportunities to develop our business,
which is well positioned to benefit from the rapid growth in asset finance.
Such strong growth in our core market, underpinned by our successful network of
brokers and increased funding facilities, creates the foundations for strong and
sustainable growth ahead."
1pm plc John Stickley, 08707 397 397
Biddicks Shane Dolan 020 7448 1000
1pm provides asset finance to the UK's Sub-Prime and SME markets, which are
primarily made up of small owner managed businesses eager to purchase business
assets but lacking sufficient cash flow to do so independently. Typically, the
assets funded are items essential to the running of these businesses, such as
vans, trucks and machinery.
In 2005, the company's average transaction size was just over £11,000. Growth
has continued into 2006, with both deal size, now up to an average of £15,000,
and the number of deals increasing.
The Sub-Prime market refers to businesses that may not be automatically approved
by traditional finance companies for a variety of reasons, such as time in
business or an adverse credit history. As a result, finance providers that
service this market are able to charge higher rates, and subsequently enjoy
1pm mitigates the risk from lending in the Sub-Prime sector by performing
extensive financial due diligence before agreeing to a transaction; the Company
also secures the loan against assets and primarily leases to businesses where it
can take additional security such as a homeowner guarantee. By implementing
these stringent procedures, the Company is able to reduce its exposure to bad
Efficient business model / strong financial performance
1pm is a unique finance company founded by brokers for brokers. Over the last
five years, the Company has built upon its management's significant sector
experience to develop a strong network of broker contacts within the UK from
which to generate business. This provides a low cost route to market, which in
addition to the company's low overhead business, has delivered high margin
revenues and consistent year-on-year profit.
The Company's success is underpinned by its high level of broker loyalty, which
the Company generates through its flexible approach to funding, along with its
proactive approach to closing transaction leads.
Significant growth opportunities
The Board believes that an AIM listing will heighten 1pm's profile, allowing the
Company access to a broader range of lending providers. The delivery of the
growth strategy will be supported by an enhanced marketing drive, as the Company
looks to position itself as a leading asset finance provider to small businesses
while increasing its receivables from £3.5 million to £12 million within the
next three years.
The scale of 1pm's opportunity has been emphasised by recent research findings,
which indicate that over two thirds of SMEs in the UK plan to make capital
investments within the next 12 months, with businesses spending between £25,000
and £100,000 favouring asset finance over other types of finance. As a lender
of between £5,000 and £50,000, 1pm is in a prime position to service the largest
segment of this expanding market.
In addition to this, the Finance and Leasing Association (FLA) recently valued
the UK market for the finance leasing of commercial vehicles, plant, machinery
and equipment at over £11 billion; as this figure refers to business
underwritten by FLA members only, the figure for the market as a whole could be
as high as £20 billion.
Board of Directors
Stephen Grey, Non Executive Chairman aged 52
Stephen brings with him 25 years of board level experience and has worked abroad
extensively, in Europe, the USA and India. His career has predominantly been in
business-to-business finance and banking, developing and delivering strategies
for operations functions such as application processing, credit and risk, key
account management, arrears collections and customer service. Most recently
(2001-2005), Stephen was with Abbey Business, the business finance division of
Abbey National plc, where he was employed as the Operations and Customer Service
Director and was responsible for providing a range of services to SMEs,
including: business banking, small and medium ticket asset finance, commercial
mortgages and factoring. Between 1986 and 2001, Stephen held a number of
positions with GE Capital European Equipment financing, with roles including
European Outsourcing Leader, European Operations Manager and UK Operations
Director. The Company is actively searching for a suitable candidate to fill
the position of Chairman. Until such time as a permanent Chairman is recruited,
Stephen will act in this capacity.
John Stickley, Managing Director aged 54
In 1998, John commenced development of the business that became 1pm, alongside
Tony Williams. John has been involved in the leasing market for over 23 years
and is highly adept at growing profitable businesses.
John began trading as a finance broker in 1983 after a successful sales career
at Anglo Leasing, a leading sales aid leasing company. In 1984 John established
his own business, Armour Leasing and Finance Ltd, which provided sales aid
leasing facilities for computer suppliers. Armour Leasing's specialisation in
the small ticket end of the market filled a gap in the market place. The boom
in demand for computer leasing saw John expand the operation from three staff
and an annual turnover of £300,000 in 1983, to 30 staff and an annual turnover
of £5 million just six years later. With his strong background in operational
and human resource management and system implementation, John helped set up the
operational and system structures for several companies, including the leasing
broker Information Technology Rentals Ltd in 1995. In 1998 John pioneered one
of the first online leasing facilities in the UK with Leasing Network, including
Transaction Tracker and a Lease Quote Generator.
Anthony Williams, Managing Director aged 49
Tony has worked in leasing for 24 years, having trained initially with Lombard
In 1985 he joined the Corporate Finance department of the Forward Trust Group,
and as Assistant Manager moved to the Supplier Sales Aid Schemes department. He
worked on the development of schemes such as Yale Forklift Trucks, which
produced leasing to the value of £10 million per year.
Tony joined Concord Leasing in Brentford in 1987 as Manager in the Credit
department, making credit decisions on leasing deals up to £250,000. He was
involved in lending to the printing and graphic arts sector and was also
involved in large (£1 million plus) deals where an operating lease structure was
required in order to classify the deals as `off balance sheet' in the customers'
In 1989, Tony formed Logilease Asset Finance South Ltd which traded as Asset
Finance Professional, a finance brokerage. He was involved in sourcing print
finance deals in the £50,000 to £5 million range and negotiated the finance deal
with the printing company and bank. In the period between 1991 and 1994, Tony
wrote his own book of leases for equipment and machinery deals ranging between
£5,000 and £20,000, developed using bank facilities.
Tony continued broking until 1998, when he commenced development of the business
that became 1pm, alongside John Stickley.
James Benson, Finance Director aged 54
James is a highly experienced finance director with over 35 years in finance.
He is commercially orientated with strong management, financial and strategic
James qualified with Ernst and Young and since then has held senior financial
positions with a number of public companies including: Inchcape plc, Allied
Domecq plc, and more recently as Finance Director with Rolfe & Nolan plc, Hardie
Amies plc and FishWorks plc.