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1PM plc (OPM)

  Print      Mail a friend       Annual reports

Monday 10 September, 2007

1PM plc

Final Results

                                     1PM PLC
                            ("1PM" or the "Company")

       CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MAY 2007

Dated: 10 September 2007




CHAIRMAN'S STATEMENT

It is a pleasure to present my first report as Chairman of 1pm Group.

I was appointed Chairman on 9 February 2007.

Overview

Whilst it is disappointing to report a loss for the period to 31 May 2007 I  can
categorically state that your board looks forward to the future with optimism as
a result of the decisive action taken to restructure the group.

The  focus of the business from inception in 1998 through to February  2007  was
directed  predominantly  at the sub prime market, i.e. customers  with  historic
credit difficulties.

Following  the  AIM  flotation  during  August  2006  the  group  found   itself
experiencing  escalating  levels  of delinquencies  which  demanded  a  detailed
evaluation  of  the  underwriting  and  collection  process  together  with  the
provisioning policy and recovery potential.

Through  this  process it became clear that the underwriting  criteria  and  the
credit  control procedures required an extensive revision if the performance  of
the Company was to improve.

The board has conducted a comprehensive case by case review.

The  results  of this review are reflected in a bad debt write off of  £482,518,
which  contributed  to  the posted loss for the period ending  31  May  2007  of
£330,907.

After careful consideration the decision was taken to withdraw from offering Sub
prime  finance  and reposition into the traditional small ticket leasing  market
specialising in providing funding for small and emerging businesses that have  a
proven  payment  history and are professionally controlled by experienced  owner
managers who have a vested interest in success of the business.

It  is  essential  that the company is an "open book" and we  are  not  carrying
forward year upon year aged delinquencies that will continue to adversely impact
on the balance sheet.

Current trading and future prospects

We have created a "clean" and operationally slick vehicle expertly positioned in
a  thriving £5bn market that the new management team have successfully performed
in for many years.

The key factors that are fundamental to maximising this opportunity are:

  ·    Structured withdrawal from the Sub Prime market

  ·    Definitive new underwriting policy implemented and designed specifically to
       exclude any form of adverse credit.

  ·    All Sub Prime brokers terminated.

  ·    Thirty new brokers all known personally by the new management team
       appointed.

  ·    Two new funding lines now in place.

  ·    New finance director appointed with proven leasing background

  ·    Robust consistent collection policy implemented including the appointment
       of two proven specialist legal collections firm of lawyers.

  ·    Recoveries February to June of £145,000

  ·    Recoveries June to October anticipated to achieve £170,000

  ·    Provisioning policy of 3% "across the board " immediately implemented


I  am  delighted to report that there is now the opportunity for a  "new  start"
based  on  the sound foundations we have established that are now commencing  to
generate strong income margins in their own right and the added advantage of the
recent  restructuring already beginning to contribute positively to  the  bottom
line.

The group is also now able to aggressively promote our "Simple Finance for Smart
Business"  philosophy  based  exclusively on the success  of  the  repositioning
programme  and  comfortable in the knowledge we are  operating  from  a  proven,
consistent   and  most  importantly  a  secure  administrative  and  operational
platform.

Board and Employees

On  behalf of the board, I would like to express my sincere thanks to our  loyal
and  brilliant staff for their amazing support, confidence and dedication during
the recent difficult months for the group.

The  appointment of Rod Channon as Finance Director of the group is an important
factor  in  strengthening a key area of the board as a result of his significant
experience in the leasing industry.

Finally  I  have  agreed to continue as Chairman to spearhead the  restructuring
programme  the  new  Board has put in place and I am sure  that  my  many  years
experience  in  this  market  will have an ongoing  positive  impact  on  future
performance and most importantly the financial success of the group.





Mike Johnson
Chairman




For further information, Contact:

1pm plc                          Mike Johnson        08707 397 397
                                 Chairman

ARM Corporate Finance Limited    Nick Harriss        020 7512 0191




CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 MAY 2007


                                                        2007
                                          Note            £

TURNOVER                                               871,965
Cost of sales                                          792,711
                                                       _______
GROSS PROFIT                                            79,254

Administrative expenses                                403,760
                                                       _______
OPERATING LOSS                              2         (324,506)

Interest payable and similar charges                   (12,372)
Interest receivable                                      5,971
                                                       _______

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION           (330,907)


Tax on profit on ordinary activities        5           83,238
                                                       _______
LOSS FOR THE FINANCIAL PERIOD                         (247,669)
                                                       =======

Earnings per share - Basic                  7           (0.19p)
                                                       =======
                   - Diluted                7           (0.19p)
                                                       =======


All of the activities of the company are classed as continuing.

The  company  has no recognised gains or losses other than the results  for  the
period as set out above.

No profit or loss has been recognised in the individual accounts of 1pm plc


CONSOLIDATED BALANCE SHEET
31 MAY 2007

                                          Note                2007
                                                        £            £
FIXED ASSETS
Tangible assets                             8                      42,512
Intangible assets                           9                    (107,200)
                                                                  _______
                                                                  (64,688)

CURRENT ASSETS
Debtors                                    10       2,826,951
Cash at bank and in hand                                6,104
                                                    _________
                                                    2,833,055

CREDITORS: Amounts falling due             11      (1,382,366)
within one year                                     _________

NET CURRENT ASSETS                                              1,450,689
                                                                _________

TOTAL ASSETS LESS CURRENT LIABILITIES                           1,386,001


CREDITORS: Amounts falling due             12                    (662,376)
after more than one year                                        _________

                                                                  723,625

PROVISIONS FOR LIABILITIES
Deferred taxation                          13                           -
                                                                _________
                                                                  723,625
                                                                =========

CAPITAL AND RESERVES
Called-up equity share capital             16                      99,925
Share premium account                      16                     871,369
Profit and loss account                    17                    (247,669)
                                                                _________

SHAREHOLDERS' FUNDS                        18                     723,625
                                                                =========




CONSOLIDATED CASH FLOW STATEMENT
PERIOD ENDED 31 MAY 2007

                                          Note                       2007
                                                                      £

Net cash inflow / (outflow) from           21                    (430,653)
operating activities

Returns on investments and                 21                      (6,401)
servicing of finance

Taxation                                   21                     (54,783)

Capital expenditure and                    21                     (34,756)
financial investment

Equality dividends paid                                                 -
                                                                 ________

Cash inflow before financing                                     (526,593)

Financing                                  21                     689,925
                                                                 ________
Increase/(decrease) in cash                21                     163,332
                                                                 ========



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PERIOD ENDED 31 MAY 2007


1. ACCOUNTING POLICIES

   Basis of accounting

   The  financial  statements  have  been prepared  under  the  historical  cost
   convention and in accordance with applicable accounting policies.
   The   consolidated  financial  statements  comprise  the  audited   financial
   statements of the company and its subsidiary undertakings made up to  31  May
   2007.
   The  separate  net assets of subsidiary undertakings acquired  and  accounted
   for  under  acquisition  accounting  are  included  in  the  group  financial
   statements at their fair values to the group at the date of acquisition.
   A  separate  profit  and loss account for the parent  company  has  not  been
   prepared as permitted in Section 230(2) of the Companies Act 1985.

   Leased assets and turnover

   Assets  leased  to customers on finance leases are excluded  from  the  fixed
   assets  of  the  company, and are reported as a debtor in the Balance  Sheet.
   Receipts  from  finance  lease  contracts contain  a  capital  element  which
   reduces the debtor and an interest charge which is credited to revenue  using
   the  "rule  of 78". In addition 5% of total interest charges are credited  to
   revenue   in   the  year  of  inception  of  each  lease  to  cover   initial
   administration costs.
   All turnover arose within the UK.

   Funding creditors and cost of sales - interest

   Finance  received  from funding providers is classified as creditors  in  the
   Balance  Sheet.  Payments to the funding providers contain a capital  element
   which  reduces the creditor and an interest charge is debited to the cost  of
   sales using the "rule of 78".

   Fixed assets

   All fixed assets are recorded at cost on acquisition.

   Depreciation

   Depreciation is calculated so as to write off the cost of an asset, less  its
   estimated  residual value, over the useful economic life  of  that  asset  as
   follows:

   Fixtures & fittings   -    25% on cost

   Assets held under finance leases and hire purchase contracts

   Fixed  assets  held  under  hire purchase contracts,  and  those  financed  by
   leasing  agreements which give rights approximating to ownership (i.e. finance
   leases)  are  treated  in  accordance with Statement  of  Standard  Accounting
   Practice  No  21 as if purchased outright.  The corresponding obligations  are
   included in creditors.

   Depreciation is provided, depending on the type of fixed asset , by the  rates
   and methods set out above.

   Operating lease agreements

   Rentals  applicable  to  operating leases  where  substantially  all  of  the
   benefits  and  risks of ownership remain with the lessor are charged  against
   profits on a straight line basis over the period of the lease.

   Pension costs

   The  company  operates a defined contribution pension scheme  for  employees.
   The  assets of the scheme are held separately from those of the company.  The
   annual contributions payable are charged to the profit and loss account.

   Deferred taxation

   Deferred  tax  is recognised in respect of all timing differences  that  have
   originated  but not reversed at the balance sheet date where transactions  or
   events  have occurred at that date that will result in an obligation  to  pay
   more, or a right to pay less or to receive more tax:

   Deferred  tax  assets  are recognised only to the extent  that  the  directors
   consider  that it is more likely than not that there will be suitable  taxable
   profits  from  which the future reversal of the underlying timing  differences
   can be deducted.

   Deferred  tax is measured on an undiscounted basis at the tax rates that  are
   expected  to apply in the periods in which timing differences reverse,  based
   on  tax rates and laws enacted or substantively enacted at the balance  sheet
   date.

   Financial instruments

   Financial  instruments  are classified and accounted for,  according  to  the
   substance  of  the  contractual  arrangement,  as  either  financial  assets,
   financial  liabilities  or equity instruments. An equity  instrument  is  any
   contract  that  evidences a residual interest in the assets  of  the  company
   after deducting all of its liabilities.

   Provision for doubtful debts

   Provision  is  made  for  contracts  in arrears  after  taking  into  account
   expected  recovery proceeds. All outstanding amounts on contracts  passed  to
   collection agents are written off in full, less expected subsequent  recovery
   proceeds.  During  the  period  the  company's  provisioning  policies   were
   reconsidered and additional provisions made as required.

   Intangible Assets - Goodwill

   Goodwill   arising   on  the  acquisition  of  subsidiary  undertakings   and
   businesses  representing any excess of the fair value  of  the  consideration
   given  over  the  fair  value  of  the identifiable  assets  and  liabilities
   acquired  is  capitalised and written off on a straight line basis  over  its
   useful economic life.
   Negative  Goodwill is similarly included in the balance sheet and is credited
   to  the profit and loss account in the periods in which it is acquired.  Non-
   monetary assets are recovered through depreciation or sale.
   Negative  goodwill  in excess of the fair values of the  non-monetary  assets
   acquired  is  credited to the profit and loss account in the period  expected
   to benefit.

   Investments

   Fixed asset investments are shown at cost less impairment.

   For investments in subsidiaries acquired for consideration by the issue  of
   shares and where the requirements of 131 of the Companies Act 1985 have  been
   satisfied, the group has utilised the merger relief provisions available  and
   the  issue  of shares have been recorded at the nominal value, any difference
   being taken to a merger reserve.

2. OPERATING (LOSS)

   Operating (loss) is stated after charging:

                                                          2007
                                                           £

   Amortisation of negative goodwill                    (107,200)
   Depreciation of owned fixed assets                     10,644
   Auditor's fees                                          9,087
   Operating lease costs:
   Other                                                  15,000
                                                         =======

3. PARTICULARS OF EMPLOYEES

   The  average  number  of staff employed by the company during  the  financial
   period amounted to:

                                                           2007
                                                            No

   Number of administrative staff                            5
   Number of management staff                                4
                                                            __
                                                             9
                                                            ==

   The aggregate payroll costs of the above were:

                                                           2007
                                                             £

   Wages and salaries                                    313,869
   Social security costs                                  24,755
   Other pension costs                                    31,792
                                                         _______
                                                         370,416
                                                         =======

4. DIRECTORS' EMOLUMENTS

   The directors' aggregate emoluments in respect of qualifying services
   were:
                                                          2007
                                                           £

   Aggregate emoluments                                186,559
   Value of company pension contributions to
   money purchase schemes                               31,792
                                                       _______
                                                       218,351
                                                       =======

   The  number  of directors who accrued benefits under company pension  schemes
   was as follows:

                                                          2007
                                                           No

   Money purchase schemes                                   2
                                                           ==


  Emoluments disclosed above include the following amounts paid to the
   highest paid director:
                                                             £
   Emoluments for qualifying services                     77,754
   Company pension contributions to money
   purchase schemes                                            -
                                                          ======


5. TAXATION ON ORDINARY ACTIVITIES

   (a) Analysis of charge in the period
                                                          2007
                                                             £
   Current tax:
   In respect of the period:
   UK Corporation tax based on the results
   for the period at 19% (2006 - 19%)                    (3,683)
                                                         ______
   Total current tax                                     (3,683)

   Deferred tax:
   Origination and reversal of timing
   differences (note 12)
   Other                                                (79,555)
                                                         ______
   Tax on profit on ordinary activities                 (83,238)
                                                         ======

   (b) Factors affecting current tax charge

   The  tax  assessed  on the profit on ordinary activities for  the  period  is
   lower  than  the standard rate of corporation tax in the UK of  19%  (2006  -
   19%).

                                                          2007
                                                             £
   Loss on ordinary activities before
   taxation                                             (330,907)
                                                         =======
   Loss on ordinary activities by rate of                (62,872)
   tax
   Capital allowances for period in excess                (1,864)
   of depreciation
   Operating income non-taxable                          (20,366)
   Unrelieved losses                                      61,499
   Other short term timing differences                    19,920
                                                         _______
   Total current tax (note 5(a))                          (3,683)
                                                         =======

6. DIVIDENDS

   Dividends on equity shares
                                                           2007
                                                             £
   Paid
   Equity dividends paid on ordinary shares                  -
                                                           ===



7. EARNING PER SHARE

   The  calculations  of  earning  per share  are  calculated  by  dividing  the
   earnings  attributable to ordinary shares by the weighted average  number  of
   shares  in  issue  during  the period. For diluted earnings  per  share,  the
   weighted  average number of ordinary shares is adjusted to assume  conversion
   of all dilutive potential ordinary shares.

                                                          2007
                                                             £
   Loss for the period
                                                        (247,669)
                                                         =======
   Weighted average number of shares                 133,082,373
                                                     ===========


8. TANGIBLE FIXED ASSETS (Group only)


                                                    Fixtures &
                                                      fittings
                                                           £
   COST
   At acquisition of subsidiary                        31,873
   Additions                                           34,756
                                                       ______
   At 31 May 2007                                      66,629
                                                       ======

   DEPRECIATION
   At acquisition of subsidiary                        13,473
   Charge for the period                               10,644
                                                       ______
   At 31 May 2007                                      24,117
                                                       ======
   NET BOOK VALUE
   At 31 May 2007                                      42,512
                                                       ======


  Assets held under finance leases and hire purchase contracts, included in  the
  relevant heading in the above table are;

                                   Cost        Accumulated       Charge for
                                               Depreciation      the Period



   At 31 May 2007                 5,475             570               570
                                  =====           =====             =====


9. INTANGIBLE FIXED ASSETS (Group only)

                                                      Goodwill
                                                           £
   COST
   Additions                                          (214,400)
                                                       _______
   At 31 May 2007                                     (214,400)
                                                       =======

   AMORTISATION
   Credited during the period                          107,200
                                                       _______
   At 31 May 2007                                      107,200
                                                       =======

   NET BOOK VALUE
   At 31 May 2007                                     (107,200)
                                                       =======


10.  DEBTORS (Group only)
                                                          2007
                                                             £

   Trade debtors                                     2,625,960
   VAT recoverable                                      36,580
   Other debtors                                        68,983
   Prepayments and accrued income                       16,567
   Deferred tax                                         78,861
                                                     _________
                                                     2,826,951
                                                     =========

   Included  in  trade debtors is an amount of £1,787,923, which  is  due  after
   more than one year (2006 - £1,401,771).

   Trade debtors wholly represent finance lease debtors.

   The cost of assets acquired for the purpose of letting under finance leases
   were as follows; 2007: £1,886,398 (2006: £2,101,420).

11. CREDITORS: Amounts falling due within one year (Group only)

                                                          2007
                                                             £

   Bank loans and overdrafts                           106,731
   Trade creditors                                   1,184,607
   Corporation tax                                       3,542
   Other taxation and social security                    9,086
   Other creditors                                       7,330
   Accruals and deferred income                         71,070
                                                     _________
                                                     1,382,366
                                                     =========

   Trade creditors wholly represent funding creditors, which are secured on the
   value of finance leases written during the financial period.

   The trade creditors figure is made up of numerous funding blocks that are
   repaid by monthly instalments. The length of the repayment term varies from
   24 to 36 months and interest rates from 6.1% to 10.66%.


12. CREDITORS: Amounts falling due after more than one year (Group only)

                                                           2007
                                                              £

   Bank loans and overdrafts                                  -
   Trade creditors                                      662,376
                                                        _______
                                                        662,376
                                                        =======

   Trade  creditors  are  secured as noted above, with the  same  repayment  and
   interest rates (note 11).


13. DEFERRED TAXATION (Group only)

   The deferred tax included in the Balance sheet is as follows:

                                                          2007
                                                             £

   Included in debtors (note 10)                        78,861
   Included in provisions                                    -
                                                        ======

   The movement in the deferred taxation account during the period was:

                                                          2007
                                                             £

   At acquisition of subsidiary                            694
   Profit and loss account movement arising            (79,555)
   during the period                                    ______

   Balance carried forward                             (78,861)
                                                        ======

   The  balance of the deferred taxation account consists of the tax  effect  of
   timing differences in respect of:

                                                          2007
                                                             £

   Other timing differences                            (78,861)
                                                        ======

14. COMMITMENTS UNDER OPERATING LEASES (Group only)

   At  31  May  2007  the  company had annual commitments under  non-cancellable
   operating leases as set out below.

                                              Land & Buildings
                                                          2007
                                                           £
   Operating leases which expire:
   After more than 5 years                              15,000
                                                        ======


15.  RELATED PARTY TRANSACTIONS

  A  director Mr A F Williams and a former director Mr J D G Stickley have given
  personal  guarantees  of  £160,000  each  to  Barclays  Bank  plc,  which  are
  supported  by  second charges over their personal domestic properties  limited
  to  £160,000 each. Also Mr J D G Stickley and Mr A F Williams have each  given
  personal guarantees of £70,000 to Barclays Bank plc, which are unsupported.

  Mr  J  D  G  Stickley  is  a director of and shareholder  in  Online  Leasing
  Limited.  During  the  period  1  pm  (UK)  Limited  incurred  the  following
  commission  charges; 2007: £415 (2006: £1,743).  There were no  balances  due
  at the year ends.

  Included  within  other  creditors (Note 9) are  amounts  owed  to  directors
  being,  Mr  J  Stickley of £nil (2006: £29,788) and Mr  A  Williams  of  £Nil
  (2006: £29,788).

  During the period the following directors invoiced the company for services
  rendered:

  J Benson invoiced the company for £25,233.
  S Grey invoiced the company for £2,250.
  M Johnson invoiced the company for £20,779.
  R Channon invoiced the company for £4,278.


16. CALLED UP SHARE CAPITAL
                                                          2007
                                                             £
   AUTHORISED:                      NOMINAL
   NUMBER:           CLASS:         VALUE:


   440,011,734      ORDINARY        0.0006818            300,000
                                                         =======


                                                                          2007
   ALLOTTED AND FULLY PAID:                      NOMINAL                     £
   NUMBER:                         CLASS:        VALUE:

   146,561,469                    ORDINARY        0.0006818P             99,925

   The Company was incorporated on 14 June 2006 with an authorised share
   capital of £300,000 divided into 1,000,000,000 ordinary shares of £0.0003p
   each of which 6,664 shares were issued.

   On 3 July 2006 ordinary shares of £0.0003p were consolidated into ordinary
   £1 shares, and the authorised share capital was increased to £300,000
   ordinary £1 shares.

   On 3 July 2006 49,998 ordinary £1 shares were issued to acquire the entire
   share capital of 1pm plc (UK) Limited, trading company.

   On 4 July 2006, the authorised and issued share capital was converted from
   ordinary shares of £1 each to ordinary shares of £0.0006818p each.
   Authorised share capital increased to 440,011,734 ordinary shares.

   On 4 July 2006, the company issued 8,228,135 ordinary shares at a price of
   £0.0006818 per share.

   On 2 August 2006, a further 65,000,000 ordinary shares were issued at a
   price of 2p per share in order to raise £1.3M proceeds.  The funds raised
   less costs resulted in £915,335 which was transferred to 1pm (UK) Limited
   (1pm plc owns 100% of the share capital in 1pm (UK) Limited).

   The funds raised were used in 1pm (UK) Limited to finance continuing
   operations.

16.CALLED UP SHARE CAPITAL (CONT)
   SHARE PREMIUM
                                                          2007
                                                             £

   Premium on shares issued                           1,256,717
   Expenses on shares issued                           (385,348)
                                                      _________
   As at 31 May 2007                                    871,369
                                                      =========


17.PROFIT AND LOSS ACCOUNT
                                                          2007
                                                             £

  (Loss) for the financial period                     (247,669)
   Equity dividends (note 6)                                 -
                                                       _______
   Balance carried forward                            (247,669)
                                                       =======


18.  RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (Group only)

                                                          2007
                                                             £

   (Loss) for the financial period                    (247,669)
   Share capital issued                                 99,925
   Share premium                                       871,369
                                                       _______

   Net addition to shareholders' funds                 723,625
   Opening shareholders' funds                               -
                                                       _______
   Closing shareholders' funds                         723,625
                                                       =======

19. FIXED ASSET INVESTMENTS
                                                          2007
                                                             £
   COST

   At 31 May 2007                                       50,000
                                                        ______
   NET BOOK VALUE

   At 31 May 2007                                       50,000
                                                        ======

                                                          2007
                                                             £

   UNLISTED INVESTMENTS                                 50,000
                                                        ======
   The company's investments at the balance sheet date in the share capital of
   unlisted companies include the following:

   1PM (UK) LIMITED
   Nature of business: Provision of equipment lease rental finance to UK
   businesses
                                %
   Class of shares           holding
   Ordinary                   100.00

                                                          2007
                                                             £

   Aggregate capital and reserves                      (90,469)
   Loss for the period                                (354,869)
                                                       =======

20. DEBTORS (Company only)
                                                          2007
                                                             £

   Inter-company loan accounts                         915,335
                                                       =======



21.  NOTES TO THE STATEMENT OF CASH FLOW (Group only)

   RECONCILIATION OF OPERATING PROFIT TO NET CASH OUTFLOW FROM
   OPERATING ACTIVITIES

                                                          2007
                                                             £

   Operating (loss)                                   (324,506)
   Depreciation                                         10,644
   Amortisation of goodwill                           (107,200)
   Increase in debtors                                  75,364
   Increase in creditors                                (5,400)
   Movement in deferred tax provision                  (79,555)
                                                       _______
   Net cash inflow / (outflow) from
   operating activities                               (430,653)
                                                       =======

   RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
                                                          2007
                                                             £

   Interest paid                                       (12,372)
   Interest received                                     5,971
                                                         _____
   Net cash outflow from returns on
   investments and servicing of finance                 (6,401)
                                                         =====
   TAXATION
                                                          2007
                                                             £
   Taxation
                                                       (54,783)
                                                        ======
   CAPITAL EXPENDITURE
                                                          2007
                                                             £

   Payments to acquire tangible fixed assets           (34,756)
                                                        ______
   Net cash outflow from capital expenditure           (34,756)
                                                        ======

   FINANCING
                                                          2007
                                                             £

   Repayment of bank loans                             (55,265)
   Proceeds from issue of ordinary shares            1,306,640
   Expenses in connection with issue of               (385,346)
   share capital
   Net outflow from short-term creditors               150,945
   Net inflow from long-term trade creditors          (327,049)
                                                       _______

   Net cash inflow from financing                      689,925
                                                       =======


   RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                                          2007
                                                             £

   Increase / (decrease) in cash in                     163,332
   the period
   Net cash inflow from bank loans                       55,265
   Net cash inflow / (outflow) from
   long-term trade creditors                            327,049
                                                        _______
   Change in net debt                                   545,646
   Net debt at acquisition of                        (1,308,648)
   subsidiary                                         _________

   Net debt at 31 May 2007                             (763,002)
                                                      =========



   ANALYSIS OF CHANGES IN NET DEBT
                                          At                  At
                              acquisition of              31 May
                                  subsidiary   Cashflows    2007
   Net cash:                             £          £          £

   Cash in hand and at                  942       5,162     6,104
   bank
   Overdrafts                      (214,242)    158,170   (56,072)
                                    _______     _______    ______
                                   (213,300)    163,332   (49,968)
   Debt:
   Debt due within 1                (55,264)          -   (55,264)
   year
   Debt due after 1 year         (1,040,084)    382,314  (657,770)
                                  _________     _______   _______

   Net debt                      (1,308,648)    545,646  (763,002)
                                  =========     =======   =======


22. SUBSIDIARY UNDERTAKINGS
   Details of subsidiary undertakings at the balance sheet date are as follows:

   Name of company       % Holding            Nature of company

   1 PM (UK) Limited      100% Ordinary       Provision of equipment
                                              lease/rental finance.

   On  3 July 2006 1 PM Plc acquired the whole of the issued share capital of  1
   PM (UK) Limited for a consideration of £50,000.


                                                              £

   Fixed assets                                          18,400
   Current assets                                     2,741,159
   Liabilities                                       (2,495,159)
                                                      _________
   Net assets                                           264,400
   Purchase cost                                        (50,000)
                                                      _________
   Negative goodwill                                    214,400
                                                      =========

23. FINANCIAL INSTRUMENTS

   The  groups'  financial instruments comprise cash and liquid  resources  that
   arise   directly  from  operations.  The  main  purpose  of   the   financial
   instruments  is  to  fund the groups operations. As a matter  of  policy  the
   Group  does  not trade in financial instruments, nor does it enter  into  any
   derivative transactions

   The  operations of the group have principally been financed to  date  through
   the  funds  raised on the placing of its shares. The group has  an  overdraft
   facility  in  place  with  the group's bankers,  and  an  overdraft  facility
   totalling £106,731 as at 31 May 2007.

   The  main  risks to the group, and the policies adopted by the  directors  to
   minimise the efforts on the group are as follows:

   Credit Risk - The directors believe that credit risk is limited due to  debts
   being  spread  over a large number of debtors. No individual debtor  poses  a
   significant risk.

   Interest rate and liquidity risk - All of the groups cash balances and  short
   term  deposits  are  held in such a way that enables the correct  balance  of
   access  to  working capital and a competitive rate of interest  is  achieved.
   Working capital requirements are constantly monitored.