Broker-fed SME lessor 1pm plc has reported an “unusually high”
number of lease terminations during September, resulting in bad
debt write-offs of £95,000 (€105,000) for the month.
The write-offs, largely a result of customer bankruptcies, came
after three quarters of very low termination rates, say the
company’s directors.
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In a statement, 1pm explained that most of the agreements
affected had been long-term, larger value deals predating the
company’s decision to reduce average deal size earlier this
year.
In the first four months of its financial year, 1pm saw gross
profit take an interannual drop, even before taking write-offs into
account. This was despite income increasing 12 percent
year-on-year.
Whereas income and lease book size are expected to continue
growing as the year progresses, September’s bad debt incidences
have made a year-end profit unlikely, the company has stated.
Fred Crawley
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