Editor's Pick: Markets: The week that was (16-20/11/09)
(OPM.L) 1pm PLC Buy/Sell
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| Date/Time | Headline | Source |
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| 16-10-09 | RNS |
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RNS Number : 9330A 1PM PLC 16 October 2009 1pm plc Trading Statement 1pm plc (the "Company") announces that during September it terminated an usually high number of lease agreements the majority of which resulted from customer bankruptcies. In the event of bankruptcy of a customer, it is the Company's policy to write-off immediately any amounts due as bad debt. Therefore in September the Company has written off bad debt amounting to approximately £95,000. The Directors can attribute no particular reason as to why the level of lease terminations and bad debt have been so high in September, there having been no requirement for any bad debt write-offs in the three previous months. While the Directors are disappointed by this development the loan agreements affected are relatively long-standing and large and more significantly predate the company's decision earlier this year to reduce its average deal size. The Directors remain confident that the company's underwriting criteria is robust and that the reduction in average deal size will increasingly reduce the Company's exposure to large individual bad debts. Overall trading in the first four months of the year has been mixed. Income is up 12% on the equivalent period last year but gross profit (before bad debt write-offs) is down principally due to general increase in bad debt provisioning that has been applied since the beginning of the year. Levels of new business have also been somewhat lower than anticipated. Initially the Directors believe this is due to the effects of the reduced level of funding available referred to in the announcement of 12 March 2009, which took longer to unwind than expected following the June fundraising. More recently, demand over the August holiday period has proved weaker than expected and has been below the level experienced in August last year. Pleasingly, demand in September has increased significantly compared to August although it remained below originally budgeted levels. It is too early in the current year to comment on the likely outcome for the year especially as trading performance is expected to be second half weighted. However, although income and the average value of the overall loan book for the year are expected to continue to increase, the incidence of September's bad debt write-offs means that it is now unlikely that the Company will report a profit for the year. Contacts:
Mike Johnson, Chairman +44 (0) 844 967 0944
Mike Coe / Marc Davies +44 (0) 117 945 3470 This information is provided by RNS The company news service from the London Stock Exchange END
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| 27-08-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 0657Y
1PM PLC
27 August 2009
1pm plc ("1pm" or "the Company")
PRELIMINARY RESULTS FOR THE YEAR TO 31 MAY 2009
1pm plc (AIM: OPM), the specialist provider of lease asset finance to the SME sector, announces its preliminary results for the year to 31 May 2009.
Financial and operating highlight:
- A revenue increase of 75% to £1.4 million (2008: £0.8 million).
- Gross profit rose 8% to £574,000 (2008: £533,000).
- Advantage taken of market conditions and the constraints on finance to
smaller UK companies by increasing the loan portfolio by 57% to £7.2m (2008:
£4.6m).
- During the year successfully raised additional finance through two placings
of new shares totalling £1,166,275 before expenses.
- Ron Russell, an investor in the Company since flotation, appointed to the
board of 1pm as non-executive director.
Contacts:
1pm plc www.1pm.co.uk
Mike Johnson, Chairman +44 (0) 844 967 0944
WH Ireland Limited www.wh-ireland.co.uk
Mike Coe / Marc Davies +44 (0) 117 945 3470
THE CHAIRMAN'S STATEMENT
I am pleased to report the results for the year ended 31st May 2009. Despite the generally depressed economic environment it has been another year of progress for the company.
Operations and financing
The current challenging economic environment has provided 1pm with an attractive opportunity to build market share as the availability of finance remains constrained for smaller U.K companies. As a result of this general squeeze on credit, 1pm has managed to increase its portfolio from £4.6 million as at 31st May 2008 to £7.2 million as at 31st May 2009.
During August 2008 1pm successfully completed a secondary placing raising £656,500 before costs which was followed by a further placing completed during May 2009 raising £509,775 before costs. The proceeds have increased the Company's funding facilities enabling it to expand its market share, build the client base and accelerate growth. In addition to increasing its working capital via the placings 1pm has secured £250,000 of debt finance through a loan facility, which has assisted the Company's ability to negotiate further funding lines as appropriate and as such enabled us to post a small profit for the period to 31st May 2009.
Notwithstanding the above the Board considered it prudent to implement a detailed analysis of the business to confirm that it was operationally efficient and to help ensure that no opportunities were over looked. As a result of the review the Board decided to implement increases to the Company's pricing structure which are anticipated to contribute positively to the Company's profit and loss account. In addition our underwriting criteria is constantly under review to ensure we are up to date with all prevailing and changing circumstances and to avoid over exposure in any one area.
Our main target remains the SME sector. 1pm focuses on good quality well founded start up business that, in the Directors opinion, have the potential to become established stable medium sized businesses with the right type of asset finance. Whilst our sector remains competitive experience shows that in times of tightening credit, companies turn to independent flexible asset financiers such as 1pm and consequently margins tend to increase. In addition we are now seeing the benefits of nurturing our relationships with our key introducers resulting in a significant increase in quality referrals and therefore a more stable client base.
The defensive manoeuvre of positioning the Company to insulate it from the effects of the "credit crunch" has enabled the Company to take positive advantage of the strength of its earlier restructuring. For example, we have been able to effectively manage the sudden and unforeseen exit of one of our funders without sustaining any potential downside.
Operations Director Maria Hampton has assumed day-to-day control of delinquency management bringing to bear her extensive knowledge and expertise in this vital area. Through the tight credit control procedures already in place we have been able to work with and assist our clients who have a genuine payment problem and recover debts from those who are just looking for a reason not to pay.
In summary the company continues to focus on disciplined underwriting supported by a robust collection policy through these uncertain times.
Results
Group turnover in the year to 31st May 2009 increased by 75% from the level of the previous year to £1.4 million (2008 £0.8 million)
Gross profit rose by 8% to £574,000 (2008 £533,000) despite provisions of £82,000 provided to reflect the current economic environment.
Net Assets have increased to £2.6m (2008: £1.5m).
Staff
Our staff remains our greatest asset and we believe our dedicated team is comparable with the best in the industry. We would like to thank them for their day-to-day contribution, which remains unsurpassed in driving the Company forward.
In June Mr. Ron Russell an investor in the company since floatation joined the board. My colleagues and I are very much looking forward to Ron's input over the coming year.
The board has appointed WH Ireland Ltd as its nominated advisor and broker with immediate effect.
Outlook
The Board believes the key to success going forward is sustainable growth with the catalyst being the new source of funding secured via the placing together with the loan facility which will enable the Board to scale the business thus taking advantage of the tight credit environment.
Finally the Directors remain confident in 1pm's business in terms of strategy and performance. Helped by the new capital raise during May the current year has commenced in line with management expectations and the Directors are confident that it will deliver further progress.
M.R.Johnson
Chairman
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2009
Note 2009 2008
£ £
(restated)
REVENUE 1,365,172 805,378
Cost of sales (791,399) (272,018)
GROSS PROFIT 573,773 533,360
Administrative expenses (556,145) (470,483)
OPERATING PROFIT 2 17,628 62,877
Finance income 63 2,602
Finance costs (14,606) (8,795)
PROFIT BEFORE INCOME TAX 3,085 56,684
Income tax expense 4 - -
PROFIT FOR THE YEAR 3,085 56,684
Attributable to equity holders of the company 3,085 56,684
Profit per share attributable to the equity
holders of the company during the year
- basic and diluted 5 0.000436p 0.0176p
All of the activities of the company are classed as continuing.
The company has no recognised gains or losses other than the results for the year as set out above.
The company has elected to take exemption under section 408 of the Companies Act 2006 to not present the parent company profit and loss account.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 MAY 2009
Note 2009 2008
£ £
(restated)
ASSETS
NON CURRENT ASSETS
Deferred income taxes 78,861 78,861
Property, plant and equipment 54,651 66,091
133,512 144,952
CURRENT ASSETS
Trade and other receivables 6 7,127,592 4,422,625
Cash and cash equivalents 1,655 25,097
TOTAL CURRENT ASSETS 7,129,247 4,447,722
TOTAL ASSETS 7,262,759 4,592,674
EQUITY
Share capital 9 1,035,639 298,773
Share premium account 9 1,640,867 1,303,112
Retained earnings 10 ( 88,623) ( 91,708)
TOTAL EQUITY 2,587,883 1,510,177
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 7 2,428,419 1,637,891
NON CURRENT LIABILITIES
Trade and other payables 8 2,246,457 1,444,606
Deferred tax liabilities - -
TOTAL LIABILITIES 4,674,876 3,082,497
TOTAL EQUITY AND LIABILITIES 7,262,759 4,592,674
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2009
Note 2009 2008
£ £
(restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Consumed by operations 11 (687,209) (808,756)
Taxation ______ - (19,464)
Net cash generated from operating activities (687,209) (828,220)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 63 2,602
Purchase of property, plant and equipment (16,255) (42,948)
Net cash generated from investing activities (16,192) (40,346)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid - -
Interest paid (14,606) (8,795)
Issue of shares net of cost 565,688 630,591
Net cash generated from financing activities 551,082 621,796
NET INCREASE IN CASH AND CASH
EQUIVALENTS (152,319) (246,770)
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE YEAR 11 (347,397) (100,627)
CASH AND CASH EQUIVALENTS AT THE
END OF THE YEAR 11 (499,716) (347,397)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 31 MAY 2009
1. ACCOUNTING POLICIES
The financial information set out in this announcement does not constitute the company's statutory accounts.
Statutory accounts for the year ended 31 May 2009 will be delivered to shareholders and to the Registrar of Companies in due course and will be available on the Company's website (www.1pm.co.uk). The report of the auditors on the statutory accounts for the year ended 31 May 2009 was unqualified and did not contain a reference to any matters which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under section 498 (2) or section 498 (3) of the Companies Act 2006.
Basis of preparation
The financial statements have been prepared in accordance with IFRS and with the Companies Act 2006.
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to May each year. 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.
Leased assets and turnover
Assets leased to customers on finance leases are recognised in the Balance Sheet at the amount of the Company's net investment in the lease. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company's net investment outstanding in respect of the leases.
All turnover arose within the UK.
2. OPERATING PROFIT
Operating profit stated after charging:
2009 2008
£ £
Depreciation of property, plant and equipment 27,695 19,369
Auditors remuneration (see below) 11,850 11,000
Staff costs 336,913 295,990
Operating lease costs:
Rent 28,703 15,218
Auditors' remuneration:
2009 2008
£ £
Audit services
Statutory audit 8,500 7,750
Non audit services
Other services pursuant to legislation 3,350 3,250
Total 11,850 11,000
3. DIRECTORS' REMUNERATION
The directors' aggregate emoluments in respect of qualifying services were:
2009 2008
£ £
Aggregate emoluments 223,404 158,253
Value of company pension contributions to money
purchase scheme 1,050 8,867
224,454 167,120
The number of directors who accrued benefits under company pension scheme was as follows:
2009 2008
No No
Money purchase schemes 1 2
4. INCOME TAX EXPENSE
(a) 2009 2008
Current tax £ £
UK corporation tax charge - -
Deferred tax (note 12) - -
Current tax - -
Corporation tax is calculated at 21% (2008: 20%) of the estimated assessable profit for the year.
The charge for the year can be reconciled to the Income Statement as follows:
(b) 2009 2008
£ £
Profit on ordinary activities before tax 3,085 56,684
Profit on ordinary activities by rate of tax 648 11,337
Capital allowances for the period in excess of 585 (2,362)
depreciation
Utilisation of loss relief (1,220) (18,468)
Underprovision of current tax (13) (525)
Unexplained difference - 4
Other short term timing differences - 10,014
Total current tax (note 5(a)) - -
5. EARNINGS PER SHARE
The calculations of earning per share are calculated by dividing the earnings attributable to ordinary shares by the weighted average number of shares in issue during the year. For diluted earnings per share, the weighted average number of ordinary shares is adjusted to assume conversion of all dilutive potential ordinary shares.
2009 2008
£ £
Profit attributable to equity shareholders 3,085 56,684
(restated)
Weighted average number of shares 707,144,061 322,667,529
Basic & Diluted Earnings per Share (restated) 0.000436p 0.0176p
6. TRADE AND OTHER RECEIVABLES (Group only)
2009 2008
£ £
Trade receivables 6,208,032 3,990,711
Unpaid share capital 508,933 -
VAT recoverable - 174,761
Other receivables 375,939 210,151
Prepayments and accrued income 18,241 31,080
Corporation tax 16,447 15,922
7,127,592 4,422,625
Trade receivables wholly represent finance lease debtors.
2009 2008
Gross receivables from finance leases £ £
No later than 1 year 2,997,621 2,569,267
Later than 1 year and no later then 5 years 5,079,270 2,610,991
Later then 5 years - -
Unearned future finance income on finance lease (1,868,859) (1,189,547)
Net investment in finance leases 6,208,032 3,990,711
The net investment in finance leases may be
analysed as follows:
No later than 1 year 2,342,881 1,856,871
Later than 1 year and no later then 5 years 3,865,151 2,133,840
Later then 5 years - -
The cost of assets acquired for the purpose of letting under finance leases were as follows; 2009: £4,157,196 (2008: £2,999,524).
Included within Trade receivables are the following receivables that are past due but not impaired as they are considered recoverable: less than three months old £54,127 (2008: £50,229), more than three months old £90,740 (2008: £13,149), all amounts are secured on the asset to which they relate. No other assets are past due or impaired.
7. CURRENT LIABILITIES (Group only)
2009 2008
£ £
Bank loans and overdrafts 501,371 372,494
Trade payables 1,804,196 1,138,429
VAT payable 13,279 -
Other taxation and social securities 4,676 5,270
Other payables 70,610 83,687
Accruals and deferred income 34,287 38,011
2,428,419 1,637,891
Trade payables wholly represent funding creditors, which are secured on the value of finance leases written during the financial year.
The trade payables figure is made up of numerous funding blocks that are repaid by monthly instalments. The length of the repayment term varies from 29 to 60 months and interest rates from 7.9% to 12%.
The company's banking facilities are secured by a mortgage debenture, dated 7 December 2007 incorporating a fixed and floating charge over all current and future assets of the company.
8. NON CURRENT LIABILITIES (Group only)
2009 2008
£ £
Bank loans and overdrafts - -
Trade payables 2,246,457 1,444,606
2,246,457 1,444,606
Trade creditors are secured as noted above, with the same repayment and interest rates.
Maturity analysis
The following analysis shows the contractual undiscounted cashflows (which differ from the discounted cashflow totals shown in Current and Non current liabilities above).
2009 2008
£ £
Trade payables:
On demand or within one year 2,088,513 1,353,129
More than one year but less than two years 1,554,697 994,458
More than two years but less than five years 881,775 568,027
Total 4,524,985 2,915,614
9. SHARE CAPITAL AND PREMIUM (Group & Company)
No of Shares Ordinary Shares Share Premium Total
£ £ £
At 1 June 2008 438,212,229 298,773 1,303,112 1,601,885
Movement 1,080,766,857 736,866 337,755 1,074,621
At 31 May 2009 1,518,979,086 1,035,639 1,640,867 2,676,506
Authorised:
No of Shares Nominal Value Total
£ £
Ordinary Shares 1,613,352,889 0.0006818 1,099,984
Allotted and fully paid:
No of Shares Nominal Value Total
£ £
Ordinary Shares 772,522,836 0.0006818 526,706
Allotted and unpaid:
No of Shares Nominal Value Total
£ £
Ordinary Shares 746,456,250 0.0006818 508,933
Issue of shares
On 14 August 2008, the company issued 328,250,000 ordinary shares at a price of £0.002 per share, on 27 March 2009 the company issued 6,060,607 ordinary shares at a price of £0.00165 per share, and on 29 May 2009 the company issued 746,456,250 ordinary shares at £0.0007 per share.
The funds raised were used in 1pm (UK) Limited to finance continuing operations.
10. RETAINED EARNINGS
Group Company
£ £
At 1 June 2008 (restated) (91,708) -
Profit for the year 3,085 -
Equity dividends - -
At 31 May 2009 (88,623) -
11. NOTES TO THE STATEMENT OF CASH FLOW (Group only)
CASH FLOWS FROM OPERATING ACTIVITIES
2009 2008
£ £
Profit before income tax for the year 17,628 62,877
Adjustment for:
Depreciation 27,695 19,369
Trade and other receivables (2,196,034) (900,292)
Trade and other payables 1,463,502 9,290
Cash generated from operations (687,209) (808,756)
CASH AND CASH EQUIVALENTS
2009 2008
£ £
Cash at bank and in hand 1,655 25,097
Bank loans and overdrafts (501,371) (372,494)
Cash and cash equivalents (499,716) (347,397)
12. TRANSACTIONS WITH DIRECTORS
A director Mr M R Johnson has given personal guarantees to: Svenska Handelsbanken plc of £350,000, Hitachi Capital Limited to of £1,000,000, Venture Finance up to a maximum of £500,000 and Kingston Asset Finance Limited to the outstanding debt at the time of the agreement being terminated.
During the year the following directors invoiced the company for services rendered:
P Connell invoiced the company for £12,000
M R Johnson invoiced the company for £93,197
R Channon invoiced the company for £15,000
H Walker invoiced the company for £22,294
At the year end, included within Current liabilities are; £2,700 due to H Walker and £7,000 due to M R Johnson.
13. SUBSEQUENT EVENTS
Since the year end the company received a loan in the sum of £250,000 from UK Private Healthcare Limited, the companies are connected by virtue of Mr R Russell, a director of both companies.
14. PRIOR YEAR ADJUSTMENT
The company has changed its accounting policy regarding the method of interest recognition on leased assets and funding creditors. In previous years the company has recognised 5% on the inception of a leased asset or funding creditor, this policy has now been changed to remove the initial recognition. The directors considered that the new policy was more appropriate to the requirements of IAS 17. There was no effect on the income tax charge. The change in accounting policy has had the following effect on the results for the year, accordingly the comparatives have been restated.
2009 2008
£ £
Decrease in turnover 36,606 43,099
Decrease in cost of sales 16,588 19,915
Decrease in profit for the year 20,018 23,184
Decrease in retained reserves brought forward 31,107 7,924
(cumulative)
Decrease in earnings per share (basic and diluted) 0.00283p 0.0072p
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PFMATMMJTBPL
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| 27-08-09 | RNS |
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RNS Number : 0633Y 1PM PLC 27 August 2009 1pm plc ("1pm" or "the Company") Change of Nominated Adviser and Broker The Board of 1pm is pleased to announce that WH Ireland Limited has been appointed as nominated adviser and sole broker to the Company with immediate effect. Contacts:
Mike Johnson, Chairman +44 (0) 844 967 0944
Mike Coe / Marc Davies +44 (0) 117 945 3470 This information is provided by RNS The company news service from the London Stock Exchange END
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| Date/Time | Subject | Author | ||
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| 09-11-09 | ||||
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Agreed. Hold until spring at least, it's not going anywhere but up mid term IMO
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| 07-11-09 |
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Got big Debts like so many other financials but this seems in a lot better shape for a recovery than many of them good turnover in serious enviroment once economy turns this will bounce significantly Target 0.5p -1p short term 1-3p medium, this looks a no brainer at these levels.
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| 06-11-09 |
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This company should never have been bought to the market.The company was stuffed full of bad debts and the figures given were pure fantasy.Since then it has been subject to continual pump and dump fund raising by the usual suspects with shares been sold off market by high pressure salesmen.
I have no axe to grind I actually made a profit by luck by selling into the market when it was being 'pumped'.But anyone needs to take this into account and be aware of the risks. Incidently the fundamentals shown on iii are now out of date there are many more shares in issue.The correct figure is shown under 'News' in a company release.Regards & good luck. More | View thread (5) | Respond | Login to Vote up | Login to Vote down |
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| 05-11-09 | ||||
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Sorry
Can you tell me it should be More | View thread (5) | Respond | Login to Vote up | Login to Vote down |
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The contents of the postings summarised here represents the opinions of the authors and not of Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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