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1PM expects record first half revenues and a profit leap boosted by recent acquisitions

In a trading update ahead of its interims, the AIM-listed firm said revenue will be approximately £13.8mln for the period, up 73% compared with the £8.0mln reported a year earlier
Shares climbing
It added that first half pre-tax profit before exceptional items will be approximately £3.5mln, an increase of 75%, when compared with last year’s £2.0m outcome

1PM PLC (LON:OPM) saw its shares jump over 7% higher today after the leasing industry specialist said it expects record first half revenues and a 75% leap in pre-tax profit boosted by recent acquisitions.

In a trading update ahead of its interim results – due to be released during the week commencing January 15 - the AIM-listed firm said revenue will be approximately £13.8mln for the period, up 73% compared with the £8.0mln reported a year earlier.

It added that first half pre-tax profit before exceptional items will be approximately £3.5mln, an increase of 75% when compared with last year’s £2.0m outcome.

WATCH: 1PM open to more partnerships and acquisitions to boost growth

1PM said present net write-offs in the first half continued to be less than 1% of the value of its gross portfolio.

The group pointed out that its interims will, for the first time, consolidate the results of all the entities acquired in 2017, namely Gener8 Finance, Positive Cashflow Finance, Intelligent Financing, and Bell Finance.

It said “both revenue and profit before tax and exceptional items are consistent with market expectations for the full year ending May 31, 2018.”

The group added that each of its three divisions are trading in line with managements' plans, reflecting continuing strong demand from SMEs for its expanding range of finance products.

Recent rapid expansion into chosen strategy

Ian Smith, 1PM’s chief executive officer, commented: "The recent rapid expansion of the Group reflects our chosen strategy of being a multi-product provider of finance to a wide-range of SME sectors, achieving significant growth whilst simultaneously maintaining price, controlling credit and spreading risk.

“The Interim Results will demonstrate the successful implementation of that strategy and we are delighted with the strategic and operational progress to date."

 1PM also revealed that, with the strong demand experienced in the first half, and to fund further growth, it has negotiated new funding facilities at "competitive rates" with existing funding partners.

 These new facilities in aggregate total £53.3mln, an increase of £12.8mln compared to the available finances under the previous facilities.

In late morning trading, 1PM shares were 7.1%, or 3.25p higher at 49.0p.

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