UK independent 1pm has signalled strong
expectations for the year ahead following a return to profit for
its financial first-half ending 30 November 2010.
MD Maria Hampton said the company was “very
hopeful for the future” after achieving a profit before tax of
£63,000 (€75,800) for the six-month period. The result compared to
a loss of £226,000 for the same months in 2009.
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The lessor is listed on the UK’s Alternative
Investment Market for small-cap companies. It reported growth in
new leasing business of 72 percent to £3.5 million, compared to
£976,000 for its first half in 2009.
In the interim statement, chairman Michael
Johnson said: “This is a very positive improvement in trading and
reflects a concerted drive to enhance levels of new business during
this period and the hard work and commitment from our experienced
staff.
“We continue to build our relationships with
brokers and their increased understanding of our requirements has
improved the conversion rate of proposals submitted by them.”
The lessor’s business model means the
financial benefit of an increase in new business is felt across the
life of leases provided, whose average length is three years.
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By GlobalData“The recent improvement in trading will have a
positive effect on revenue and profitability for this financial
year and subsequent years,” Johnson said.
Bad debt write-offs dropped 52 percent to
£87,000 and the total lease portfolio was up 43 percent to £9.19
million. However the company is remaining prudent in its approach
to leasing. In October it secured a funding line with non-executive
director Ron Russell, exclusively for the purposes of writing new
leases, providing for a draw down of up to two tranches of £400,000
each. In November, a new block discounting line of £500,000 was
agreed.
Johnson said: “The board of 1pm are committed
to delivering increased shareholder value. Having returned to
profitability in the first half the directors are confident that
this can be built on during the second half.
“Enquiry levels for new lease agreements
remain strong and further growth in the portfolio is
anticipated.”
