1pm plc: 2019 final results
1pm plc, is pleased to announce final results for the year ended 31 May 2019 in line with market expectations, reporting robust trading and demonstrating further growth in revenue and profit before tax, exceptional items and share based payments.
The Company operates a flexible ‘hybrid’ funding model, enabling it to both write business on its own book and to broke-on to third party funders. It provides a multi-product offering of asset, loan, invoice and vehicle finance generating strong demand from smaller UK SMEs and consumers.
Commenting on the Group’s performance, John Newman, non-executive chairman, said:
“I am pleased to report that the Group has delivered a further year of robust performance and growth. The financial year was a period of development for the Group with the businesses previously acquired as part of the Group’s “buy and build” strategy focussed on operational performance and on delivering organic growth. The achievement of a number of earn-out targets has demonstrated the success of the strategy and the continuing commitment of the local management teams. The focus of our strategy is for our Group to be a well-diversified and risk-mitigated alternative finance provider, recognised as having a comprehensive range of business finance products to offer to an expanding base of UK SMEs and consumers.”
Financial highlights:
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Revenue for the year of £31.8m (2018: £30.0m), an increase of 6%
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PBTE for the year of £8.1m (2018: £7.8m), an increase of 4%
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Fully diluted earnings per share of 6.61 pence per share (2018: 6.46 pence) an increase of 2%
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Total dividend for the year (combined interim paid and final proposed) of 0.84 pence per share (2018: 0.65 pence per share), an increase of 29%
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Consolidated net assets at 31 May 2019 of £53.8m (2018: £47.7m), an increase of 13%
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Return on net tangible assets of 24% (2018: 32%)
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Strong visibility on future earnings with approximately 50% of revenue for the current year to 31 May 2020 already secured as “unearned income”
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Aggregate funding facilities available to lend of £167.1m (2018: £162.6m), an increase of 3%
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Blended cost of borrowings reduced by 5% to approximately 3.9% (2018: 4.1%)
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Net interest margin maintained at approximately 12%
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Consistent write-off levels. Net of recoveries from previously written-off receivables, write-offs in the year amounted to £0.6m, representing approximately 1% of the year-end own book net portfolio (2018: approximately 1%)
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Bad debt provisioning increased, with a balance sheet provision held at 31 May 2019 of 1.9% of the net lending portfolio (2018: 1.5%)
Operational highlights:
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Total new business origination up 13% in the year to £161.0m (2018: £142.9m), comprising:
– £104.9m, or 65%, of new business origination (2018: £80.0m) broked-on for commission income, including all vehicle finance origination of £54.1m (2018 £37.3m)
– £56.1m, or 35%, of new business origination (2018: £62.9m) for own book portfolio
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Deals written on own book from internal cross-selling of the Group’s products during the year of £4.8m (2018: £1.9m), an increase of 2.5 times
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Maiden interim dividend paid and final dividend proposed in accordance with stated progressive dividend policy
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Acquisitions performing in line with management expectations with the full realisation of earn-out consideration for two more acquired entities – Positive Cashflow Finance and Bradgate Business Finance – during the year
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Senior management team hires completed with heads of asset, loan, invoice and vehicle finance in situ together with heads of group functions – IT, HR, risk, marketing and compliance
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Awarded SME Champion at the Leasing Life Awards and Highly Commended at both the Leasing World Service Excellence and the International Asset Finance Network awards.
On current trading and prospects, Ian Smith, chief executive officer, added:
“In what have remained uncertain prevailing business conditions, we are delighted to be reporting continued year-on-year growth in revenue and underlying profits. The results for the year ended 31 May 2019 demonstrate the strength of our market position, our multi-product offering and our flexible operating model. The Group is well positioned to deliver further strategic growth in order to increase shareholder value over the next five years.”
