Interim results: delivering value-added strategy - The results confirm 1pm is on track to deliver the substantial profit growth the market expects. We believe greater confidence in delivery will be a trigger for re-rating as the current May 2019E P/E of 6.5x and P/B of 0.8x are inconsistent with a profitable, growing company. The results also confirm impairment losses, although rising modestly, remain well controlled and more than priced into lending, and that provisions coverage is increasing. Funding continues to be well diversified and the average cost of funds is down nearly a third. We expect the second half to show a continuation of these trends, together with more integration benefits.
Ian Smith Introduction & brief overview of 1pm 00:23
James Roberts Financial highlights 01:26
James Roberts Continuing growth 02:54
Ian Smith Continuing the strategy 03:36
James Roberts Funding facilities 04:43
Ian Smith Summary & Outlook, 06:0
What can we expect with the interim results? 00:21
Based on broker forecasts it looks like results are H2 weighted, is that the case? 01:17
Can you explain the exceptional items 01:48
Can you tell us more about the organic growth? 02:23
Hows the integration of the acquisitions going? 03:32
Are any of the divisions out performing? 04:38
Are you concerned about interest rate rises? 05:18
The new funding facility 05:50
Can you tell us more about the use of FinTech 06:36
Whats the outlook for 1pm going forward 07:37
Ian Smith CEO
Investor proposition 00:40
The SME finance market 3:00
Group overview 3:58
What 1pm do and examples 6:07
Spread of credit risk 8:22
Business origination 9:20
The competition 10:19
The strategic plan 10:58
James Roberts CFO
Financial highlights 12:11
Profit before tax 14:26
Net interest margin & EPS 14:46
Portfolio analysis 15:21
Ian Smith CEO
Summary & outlook 17:25
High payment for acquisitions? & dividend 18:47
Funding sources & risk- 23:27
Ian Smith: Brief overview of 1PM 00:20
James Roberts: Results 00:44
Ian Smith: How the results where achieved 1:54
James Roberts: New business 2:47
Ian Smith: The strategic plan 3:28
James Roberts: Funding facilities 5:15
Ian Smith: Summary & Outlook, 5:53
Went to a presentation by Ian Smith (Chairman) & Helen Walker (FD) at a ShareSoc seminar earlier this week.
After their presentation, they stayed and chatted. I with 2 or 3 others had a good 10 minutes face to face chat with them both.
I am now a new investor.
I say no more.
I do not believe the fundamental have changed that the in such a short time. The results seemed good to me and the outlook was strong. I think this has been walked down to the year low and will start to rise from here.
Yes well thanks izzy and trust you are to. Agree SP seems to be stuck in the 60p range but not for long me thinks. Last year there was the cost of move, more staff etc and of course two placings. This year we should see the benefits and the recent acquisition will be earnings enhancing. The update next week could be very positive and I would expect some good media feedback as a result of the merger. £1 in the NY but 80p in the short term.
Yes still in BOWOOD, Sold some. and topped up in African Potash and Metal Tiger, thought there were good times on the horizon when they moved into the new bigger offices, and increased head count, but very little seems to have happened, I just hope there will be some good news in the results.
Yes I was but now feel that she is still CEO of 1PM and will continue to drive that subsidiary, with a group CEO now in place overlooking the two trading companies. As I posted earlier Maria is 1PM and I now see the thinking of the Non Ex Directors.
Are you still here izzy? Interims to be announced mid December and I think we can expect some excellent figures, Existing business doing well and the acquisition a few weeks ago will be earnings enhancing so we are told. It would not surprise me to see the SP press on to 80p+ over the coming couple of weeks. Any thoughts?
I think in spite of the half year results being good the price is feeling a bit of a lag from the issue of the additional equity, effectively leveraging down the business, and the upfront cost of the additional investment.
On the investment side, my estimate is that there would be £100k cost for the additional staff (6 months of £400k over 2 years), plus an unknown amount for investment in systems (cash outflow, P&L depreciation).
I don't necessarily see the investment holding the earnings growth back substantially, but I think the combination of the equity issue, and the up-front investment, has led to investors taking a "wait and see" approach.
My figures were based on the present share capital of 36.55 shares in issue, BOWOOD, so the present results reflect that, and the larger offices and the relocation cost will more than pay for them selves, by the extra business they will generate.
Plus there is no real need to borrow more as they have a few million in the bank, with lending repayments also being used for future business, 1PM must surely be self funding.
I did notice if you wanted to invest a few grand, they are paying around 6% interest, which is a lot better than you would get in a bank.
You are right of course but we now have more shares in issue so eps will stagnate for a while and net earnings may fall back as the cost of development has to be absorbed. The sp could fall back a little as the position is consolidated.
Sorry BOWOOD i just don't get it, this isn't a company that is selling goods, goods that are not selling, the book stands at £24 million, with most coming back with interest, plus they have money in the bank, they have moved to bigger offices, and are looking to employ more staff, all that could be paid for out of the interest they are getting,
The more they lend the more they will earn, but what ever way you look at it, the company must have a valuation of around £36 million, there are just over 36.5 million shares in circulation, which has to make the shares worth at least £1,
I agree Izzy but I think the year will result in flattish results as investment in th business takes over. Because of this investors will stand back until the benefits come through. Quite wrong IMO and an opportunity to pick up more stock for the longer term.
They have already indicated that eps will be flat this year as they take on more staff, move etc and of course there will be more shares to service. Y/E 2016 will see the benefits of the current investment program but I suspect that lending will get tougher as interest rates rise and banks become better lenders to SMEs.
I can not see the reason for the price drop, the companies loan book must now stand at over £20 million, they have cash at over £5 million with the fund raising, they have cash coming in every month from their loan portfolio, and there is a demand for loans, so it's not as if they have cash flow problems, with only 36 million shares in issue, it would only need one or two big investors to sell up and the price falls, which it has done,
Maybe the trading update, due any day now will tell us more,
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