Strong demand from SME sector drives full-year results for 1pm

The AIM-traded company issued the trading update ahead of its results for the 12 months to 31 May, due to be released during the week of 11 September.

Its board said the trading results for the year would demonstrate “further strong growth” in both revenue and profits, with revenue for the group set to be marginally ahead of market expectations and profit before tax to be in line with market expectations, after exceptional items.

Revenue for the year of was set to grow 34% to approximately £16.7m, while profit before tax was expected to be 28% higher at £4.3m.

The company said new originated and funded lease and loan business amounted to £50.8m, up 64%, while new originated and ‘broked-on’ lease and loan business reached £17.7m, up 124%.

Its ‘own-book' asset and loan portfolio as at 31 May stood at £77.5m, up 17%, with write-offs in the year continuing to be less than 1% of the gross portfolio.

The company made a “prudent impairment provision” of £1.2m, representing 2.0% of the net portfolio outstanding.

“1pm has enjoyed another year of progress and improved results,” said chief executive Ian Smith.

“The figures demonstrate both the anticipated organic growth from our existing group companies and the expected growth from our strategic acquisitions.

“It is also encouraging that each of the group's trading subsidiaries have continued to experience robust levels of demand for finance from across the UK SME sector.”

Smith said 1pm’s “varied and expanding” product offering, combined with its flexibility to fund and broke-on and its focus on excellent customer service, enabled the group to deliver the results.

“Looking ahead, these core elements of our business, when allied to the successful acquisition strategy we have implemented, mean that we are well positioned to build value for our shareholders.”