Specialist finance provider, 1pm Plc, has announced interim results for the six months to 30 November 2019.

The AIM-listed provider of financial services to UK SMEs posted 7% growth figures for deal origination, but revenue was down 6% and operating profit was down by 22%.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The company said the interim figures reflected a “continued demand for finance from UK SMEs and consumers across a comprehensive range of products offered by the group.”

1pm described the results as being: “underpinned by the Group’s prudent underwriting and provisioning policies which are continuously under review, given the extended period of uncertainty experienced in the wider macro-economic environment.”

In a statement the company said it “remains resilient and profitable thanks to its ability to offer a complete range of finance products”, these include asset, vehicles, loan and invoice finance to UK SMEs.

The company also attributed its success to its “flexible business model” which allows it to act as either a funder or a broker to “maintain margins and manage credit risk, and its current focus on increasing Group synergies and operational efficiencies.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Figures, compared to year-on-year 2018, include:

  • Deal origination increased by 7% to £87.8m (against £82.3m).
  • Revenue decreased by 6% to £15.6m (against £16.0m), reflecting a “slight change” in the company’s product mix.
  • Operating profit before exceptional items of £3.2m decreased by 22% (against £4.1m).
  • Funding facilities increased 2.1% to £170.7m (against £167.1m).

1pm’s board said it had made a “significant” investment in senior personnel and business functions in line with its strategy, with integration progressing as planned.

John Newman, non-executive chairman, said: “Given the macro-economic and political uncertainty experienced in the UK throughout 2019, including the run-up to December’s General Election, which clearly dampened business activity levels, we are satisfied with the trading momentum maintained across the Group during the first half.

“The Board believes that the Group’s strategy of being a multi-product provider of finance to UK SMEs and consumers, allied to the flexibility of our “hybrid” operating model of either funding or broking-on new business origination remains sound and will facilitate future growth as well as mitigating the risks associated with any future economic downturn.

“This has enabled the Group to generate robust levels of demand whilst being able to maintain margin, control credit and spread risk. As a result, the Group remains strategically and operationally well positioned to deliver future growth.”