TIME FINANCE PLC

Interim / Quarterly Report • Jan 21, 2014

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RNS Number : 1098Y

1PM PLC

21 January 2014

For Immediate Release                                                                                                  21st January 2014

1pm plc

("1pm", the "Group" or the "Company")

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 NOVEMBER 2013

Strong trading momentum maintained

1pm, the AIM quoted independent provider of finance to the SME sector, announces its Interim Results for the six month period to 30 November 2013. 

Commenting on the results, 1pm CEO, Maria Hampton, said:

"I am very pleased to report that the Group has made another excellent start to a trading year. The results for the first half demonstrate that the strong trading momentum gained during the year ended 31 May 2013 has continued into the current financial year."

Financial Highlights

·      Revenue for the period increased 37% to £1.95m (H1 2013: £1.42m)

·      Profit before taxation increased 84% to £0.61m (H1 2013: £0.33m)

·      Earnings per share* up 40% to 1.61p (H1 2013: 1.15p)

·      Net receivables increased 25% to £15.07m (H1 2013: £12.05m)

Operational Highlights

·      Record new business of over £1m achieved in October

·      New business written during period up 28% compared to same period last year

·      Total lease portfolio increased 34% to £17.70m (H1 2013: £13.20m)

·      Relationships now established with over 70 finance brokers nationwide (2013: 63)

*Adjusted for share consolidation

On current trading and prospects, Maria Hampton added:

"The Board is committed to delivering sustainable growth and value for its shareholders and has instigated a number of initiatives to further improve the Group's performance. Notwithstanding the continuing challenging economic climate, current levels of demand lead the Group to anticipate further progress in the second half."

For further information, please contact:

1pm plc	www.1pm.co.uk
Ron Russell, Chairman	0844 967 0944
Maria Hampton, CEO	0844 967 0944
WH Ireland (NOMAD)	www.wh-ireland.co.uk
Mike Coe	0117 945 3470
Winningtons Financial PR	0117 985 8989
Paul Vann/Tom Cooper	07768 807631
	[email protected]

About 1pm:

The Company was admitted to AIM in August 2006.

1pm plc is an established independent finance company focused on providing SMEs with accessible funding to add value to their businesses.  All customers must have good credit histories and proven ability to repay their finance commitments.

1pm currently provides assets finance from £1,000 to £50,000 for a period of between 12 and 60 months and £1,000 to £15,000 for business loans (repaid over 3-36 months).

Mission Statement - 'Helping the UK economy grow by supporting SMEs'

More information is available on the Company website www.1pm.co.uk

CHIEF EXECUTIVE'S STATEMENT

Financial Results

I am very pleased to report that the Group has made another excellent start to a trading year. The results for the first half demonstrate that the strong trading momentum gained during the year ended 31 May 2013 has continued into the current financial year.

Total revenue for the first six months of the current  year rose by 37% to £1.95m compared with the same period last year (H1 2013: £1.42m) with profit before tax increasing by 84% to £609k (H1 2013: £332k). Earnings per share, when adjusted for share consolidation increased 40% to 1.61p (H1 2013: 1.15p). 

The Group's balance sheet has also been further strengthened during the period by £1.5m of new equity capital (before costs) raised through a share placing with Henderson Global Investors. As at 30 November 2013 net assets stood at £6.43m (H1 2013: £4.23m), a 52% increase since the previous year end.

Operations and strategy

The Group wrote £5.0m of new business during the first six months of the trading year, a 28% increase compared with the corresponding period last year (H1 2013: £3.9m) and included writing  record new business of over £1m in October 2013.

At the period end, the lease portfolio had increased to £17.70m, a 34% increase over the same period last year (H1 2013: £13.20m) and a 20% increase since the year end last May (FY2013: £14.8m). The portfolio has an average loan value of £8.5k (H1 2013: £7.5k) with no single customer representing more than 0.43% of the total portfolio value (H1 2013: 0.54%).

The Group has developed relationships with a further 7 finance brokers since the year end in May 2013 and is now in partnership with over 70 nationwide. The Group will continue to engage with additional finance brokers and is committed to maintaining and developing this vital source of new business.

During the coming months the Group will also seek to develop relationships with IFAs and Accountancy firms throughout the UK and anticipates that this route to market will not only provide SMEs with a valuable source of new funding but will further enhance the Group's geographical representation.

The management team continues to review and develop policies and procedures and maintains a strict underwriting approach and strong credit management policy, which has helped to deliver profitable growth and minimise bad debts, which at 30 November 2013 stood at 0.64% of the portfolio (H1 2013: 0.84%).

Whilst again reporting strong organic growth and record levels of new business, the Board is still actively seeking portfolio acquisition opportunities; however the quality and cost of any such transactions remain paramount.

As reported in the trading statement released on 10 October 2013 the Group has commenced its expansion into small business loans. This initiative has been well received by the market and to date has written over £125,000 of new business, however Asset Leasing remains the Group's core business.

The Group invested in its CRM system and in improvements to management information, which has increased efficiency; the management team will continue to monitor its systems and upgrade as necessary.

The Group is in the process of recruiting three additional members of staff in the expectation of continued growth; the Board would like to take this opportunity to thank the Group's hardworking and dedicated staff for another sterling performance.

Since the period end the Group has won 'Business Employer of the Year' awarded by Bath College for the work carried out in relation to the Apprenticeship Scheme and was also short listed for 'Independent Lessor of the Year' in the Leasing World Awards.

Financing

On 16 August 2013 the company carried out a Capital Reorganisation such that 1 New Ordinary Share was issued for every 0.006818 Existing Ordinary Share.

At 30 November 2013 the issued share capital of the company was 29,969,329 ordinary shares with a nominal value of 10p each.  

£945k of new funding has been received since 31 May 2013 from high net worth individuals and Self-Invested Personal Pension (SIPP) funds; the total raised from sources of this type now stands at over £4.3m.

This brings the total amount of new funding raised by the Group since 31 May 2013 to over £4.9m, of which £1.5m was new equity capital raised (before costs) through a share placing with Henderson Global Investors.

These and other funding lines provide 1pm with the raw material to continue to grow.

More information regarding how individuals or organisations may provide funding to 1pm is available on the Group's website http://www.1pm.co.uk/Funding. 

Board Change

During the period Michael Johnson stepped down as Chairman; the Board would like to thank him for his service and wish him well for the future. The Board would like to welcome Ian Smith, whose appointment as Chairman was announced this morning. 

Outlook

The Group will continue to offer much needed financing solutions to support the growing demand from SMEs as they increasingly turn away from mainstream banks as a source of business finance.

The Board is committed to delivering sustainable growth and value for its shareholders and has instigated a number of initiatives to further improve the Group's performance. Notwithstanding the continuing challenging economic climate, current levels of demand lead the Group to anticipate further progress in the second half.

I would like to thank our shareholders, advisors, clients, finance brokers and funding partners for their continued support.

M Hampton

CEO, 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 5 to 10 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 2013 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

17th January 2014

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 NOVEMBER 2013
		Independently Reviewed 6 months to 30 November		Independently Reviewed        6 months to   30 November		Audited 12 months to 31 May
		2013		2012		2013
	Note	£		£		£
REVENUE		1,953,303		1,424,855		3,106,612
Cost of sales		(922,510)		(757,630)		(1,651,194)
GROSS PROFIT		1,030,793		667,225		1,455,418
Administrative expenses		(409,887)		(327,009)		(663,179)
OPERATING PROFIT		620,906		340,216		792,239
Finance income		554		-		148
Finance expense		(12,258)		(8,582)		(17,100)
PROFIT BEFORE TAXATION		609,202		331,634		775,287
Tax expense		(137,610)		(65,291)		(172,219)
PROFIT AFTER TAXATION		471,592		266,343		603,068
Attributable to equity holders of the company		471,592		266,343		603,068
Profit per share attributable to the equity holders of the company during the Period
		Pence per share		Pence per share		Pence per share
- basic and diluted	5	1.613482		1.150435		2.604896
All of the above amounts are in respect of continuing operations.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS TO 30 NOVEMBER 2013
	Independently Reviewed 6 months to 30 November				Independently Reviewed        6 months to   30 November				Audited 12 months to 31 May
	2013				2012				2013
	£				£				£
ASSETS
NON CURRENT ASSETS
Property, plant and equipment		47,641			35,059				40,761
		47,641			35,059				40,761
CURRENT ASSETS
Cash at bank and in hand		17,441			4,598				12,894
Trade and other receivables		15,065,338			12,045,353				12,899,718
TOTAL CURRENT ASSETS		15,082,779			12,049,951				12,912,612
TOTAL ASSETS		15,130,420			12,085,010				12,953,373
EQUITY
Called up share capital		2,996,933			2,315,132				2,315,132
Share premium account		2,287,540			1,569,340				1,569,340
Retained earnings		1,145,949			342,632				679,357
TOTAL EQUITY		6,430,422			4,227,104				4,563,829
LIABILITIES
CURRENT LIABILITIES
Trade and other payables		5,010,247			4,178,884				5,177,345
NON CURRENT LIABILITIES
Trade and other payables		3,689,751			3,679,022				3,212,199
TOTAL LIABILITIES		8,699,998			7,857,906				8,389,544
TOTAL EQUITY AND LIABILITIES		15,130,420			12,085,010				12,953,373

CONSOLIDATED INTERIM CASH FLOW STATEMENT
FOR THE SIX MONTHS TO 30 NOVEMBER 2013
		Independently Reviewed 6 months to 30 November		Independently Reviewed        6 months to   30 November		Audited 12 months to 31 May
		2013		2012		2013
		£		£		£
Cash flows from operating activities
Cash generated from operations		(1,301,227)		(457,986)		(812,142)
Interest Paid		(12,258)		(8,582)		(17,100)
Net cash generated from operating activities		(1,313,485)		(466,568)		(829,242)
Cash flows from investing activities
Interest received		554		-		148
Purchase of tangible fixed assets		(16,445)		(3,940)		(16,814)
Net cash generated from investing activities		(15,891)		(3,940)		(16,666)
Cash flows from financing activities
New loans in year		-		-		400,000
Repayment of loans		(20,000)		-		-
Issue of shares net of costs		1,400,001		-		-
Net cash generated from financing activities		1,380,001		-		400,000
Increase / (decrease) in cash and cash
equivalents		50,625		(470,508)		(445,908)
Cash and cash equivalents at the beginning of
the year		(507,183)		(61,127)		(61,127)
Cash and cash equivalents at the end of the year		(456,558)		(531,635)		(507,183)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 30 NOVEMBER 2013
			Share Capital		Share Premium		Retained Earnings
Balance at 31 May 2013			2,315,132		1,569,340		679,357
Movement in share capital			681,801		718,200		-
Consolidation of share capital			-		-		(5,000)
Profit for period			-		-		471,592
Balance at 30 November 2013			2,996,933		2,287,540		1,145,949
Balance at 30 November 2012			2,315,132		1,569,340		342,632
Movement in share capital			-		-		-
Profit for the period			-		-		336,725
Balance at 31 May 2013			2,315,132		1,569,340		679,357

Notes to the Accounts:

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 2013 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 2013 or are expected to be adopted and effective at 31 May 2014. The financial information for the six months ended 30 November 2012 and the six month period 30 November 2013 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 (its 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 2013 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. On 20 June 2013 the company issued 1,000,000,000 ordinary shares of nominal value 0.06818p at 0.15p per share which increased the share capital to 4,395,618,769. On 16 August 2013 the company carried out a Capital Reorganisation such that 1 New Ordinary Share was issued for every 0.006818 Existing Ordinary Share. At 30 November 2013 the issued share capital of the company was 29,969,329 ordinary shares with a nominal value of 10p each.

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:
				6 months to				6 months to
			30 November 2013				30 November 2012
				£				£
	Profit for the period after taxation			471,592				266,343
	Pre Consolidation
				Number				Number
	Basic weighted average of ordinary shares pre consolidation			4,286,923,117				3,395,618,769
				Pps				Pps
	Basic earnings (pence per share)			0.011001				0.007844
	Post Consolidation
				Number				Number
	Basic weighted average of ordinary shares post consolidation			29,228,242				23,151,329
				Pps				Pps
	Basic earnings (pence per share)			1.613482				1.150435
	The basic earnings per share is calculated on the weighted average number of shares in issue during the period.
6	BOARD CHANGE
	On 12 September the Chairman of the company, Michael Johnson stepped down and received £41,774 in termination benefit.
7	COPIES OF THE INTERIM REPORT
	Copies of the interim report are available from www.1pm.co.uk and the company secretary at the 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

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