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1PM PLC (OPM)

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Thursday 12 January, 2012

1PM PLC

Half Yearly Report

RNS Number : 4109V
1PM PLC
12 January 2012
 



 

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 Stephens
Registered Auditors
Chartered Accountants
30 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.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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