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%.
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.”
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.”