Final results for the year ended 31 May 2017
1pm plc, the AIM listed independent specialist provider of finance facilities to the SME sector is pleased to announce final results for the year ended 31 May 2017.
The trading results for the year reflect organic growth in revenue and profits at Onepm Finance, Academy Leasing and Bradgate Business Finance and strategic growth from the acquisitions of Intelligent Financing Limited and Bell Finance Limited towards the end of the financial year.
The group has continued to experience strong levels of demand for finance from the SME sector across the growing range of products offered. This product range now includes asset finance (finance leasing and hire purchase for ‘hard’ and ‘soft’ assets and vehicles), loans, and subsequent to the year-end, commercial finance (invoice discounting and factoring).
Financial highlights:
• Revenue for the year of £16.9m (2016: £12.5m), an increase of 35%
• Profit before tax and exceptional items for the year of £4.3m (2016: £3.7m), up 17%
• Basic earnings per share of 6.09 pence (2016: 5.87 pence), up 4%
• Dividend proposed of 0.5 pence per share on approximately 83.8m shares currently in issue (2016: 0.5 pence per share on approximately 52.5m shares in issue)
• Consolidated net assets at 31 May 2017 of £28.5m (2016: £23.9m), an increase of 19%
The group’s combined gross lending portfolio amounted to £89.5m at 31 May 2017 (2016: £67.7m), an increase of 32%. Included in the value of this gross portfolio is unearned income, i.e. future revenue, of £18.9m (2016: £14.6m), an increase of 29%. Portfolio write-offs, net of recoveries of previously written off receivables, amounted to £0.9m, representing approximately 1.0% of the portfolio (2016: £0.5m, representing 0.8% of the portfolio).
Operational highlights:
• Combined origination, including acquired entities since their date of acquisition, amounted to £83m of new lease, hire and loan agreements (2016: £49.7m), an increase of 67%
• Combined new business origination on a like-for-like basis increased 23%
• Finance provided or lending arranged for over 16,150 customers and end-users
• Funding facilities available of £74.5m of which £49m utilised as at 31 May 2017 (2016: £61.5m of which £38.8m utilised)
• Blended cost of borrowings fell to approximately 5.3% (2016: 5.8%).
In addition, integration and cross-selling progress at each entity within the group following their respective acquisitions is in line with operational expectations and objectives set by management.
John Newman, on-executive chairman commented:
“We are delighted that the group’s strong financial results, delivered during another year of strategic change in line with our stated strategy, continue the trend in recent years of profitable organic growth. The board is optimistic in its pursuit of further growth in the current financial year, is very pleased with the performance of each of its acquisitions and is committed to delivering increasing value for its shareholders from the enlarged group of businesses.”
Ian Smith, chief executive officer, commented:
“Each of 1pm’s trading subsidiaries has continued to experience robust levels of demand for finance from across the UK SME sector. This has enabled the group to deliver another year of operational and strategic progress and strong underlying results. The range of products now offered, plus the flexibility to fund and broke-on, mean that the group is well positioned to build value for shareholders.”
