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1PM upbeat

18 December 2015 07:20

1PM Plc said H1 trading results will show further growth in revenue and profits, both on the year, ahead of management expectations.

The results include a first contribution from Academy Leasing Limited ("Academy") for the period from 25th August 2015 to 30th November 2015. Academy, a provider of equipment finance and an equipment and vehicles broker to the SME market, is the only trading company within the MH Holdings (UK) Limited group of companies ("MH Holdings"), which was acquired by 1pm plc on 25th August 2015 (the "Acquisition"). The trading results of Academy are also ahead of management expectations.

1pm and Academy (together the "Group") continue to experience high levels of demand for finance from the SME sector across the range of products offered, being asset finance (finance lease and hire purchase), business loans and vehicles broking.

During the period, the Group originated £9.7m of new lease and hire purchase contracts (H1 2015: £5.8m) and £6.1m of business loans (H1 2015: £1.0m), a six-fold increase over the corresponding period last year. Since the Acquisition of Academy, the Group also earned £0.2m of commission from broked-on lease and hire purchase contracts (H1 2015: £nil) and £0.3m of commission from broked-on vehicle leases (H1 2015: £nil), both new revenue streams for 1pm.

As at 30th November 2015, the Group's combined asset finance and business loans portfolio stood at £57.0m. This comprised £39.4m at 1pm (H1 2015: £24.3m), an increase of 62 per cent. since November 2014 and an increase of 30 per cent. since the year end on 31 May 2015; and £17.6m at Academy.

To fund this organic growth in the half year to 30th November 2015, the Group increased its use of the headroom in its existing block funding facilities, raised additional debt funding of £2.5m (H1 2015: £5.7m) and reinvested £4.5m of cash flow generated from operations (2015: £0.8m).

To fund the cash element of the Academy Acquisition consideration, 1pm raised £6.9m of equity finance (net of expenses) by means of an oversubscribed share placing and open offer at 60 pence per share.

Story provided by StockMarketWire.com

Related Company: OPM

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