1pm Share Discussion Threads

[the_beagle] 19/11/2010 12:25

Thanks 4nca. Good summary.

[4nca] 19/11/2010 12:17

Beagle - £1m of additional facilities should, in theory, enable them to increase the portfolio to circa £10m. Don't forget that their cash generation rate is quite strong as most of the advances they are making are over 18 to 36 months -meaning that there is a compunding effect (i.e. they lend the capital and interest repayments they receive from their borrowers). Gearing doesnt really come into this in the truest sense becasue their block facilities oblige them to repay capital and interest so, you're right in that an additional £1m would probably add only 7.5% in year 1 (but that % would increase year 1 onwards).

[saud2237] 19/11/2010 12:17

Sorry I meant 0.3 p

[edgefund] 19/11/2010 12:10

0.3p I think he means

[22hoper] 19/11/2010 12:04

Yes 0.30p seems about right after news today.

[the_beagle] 19/11/2010 12:04

4nca...Partly thanks. You are suggesting profits of maybe £650k gross. 20% of market capital. The second part of the question was, if a hypothetical new £1 million became available, how would that affect the business. Would it just add 7.5% ie £75,000 to the profit, or is there gearing in the scheme of things?

[davidcod] 19/11/2010 11:58

I think he means 0.3p

[ihavenoclue] 19/11/2010 11:58

saud2237 - 19 Nov'10 - 11:50 - 800 of 802


I genuinely think that the market cap should reflect the lease portfolio because that is the money they have leased...hence I can see it going up to 3p from here.

=======================

3p ????

[4nca] 19/11/2010 11:55

Beagle - as I've mentioned in previous posts; I ran an asset finance company like this for 15 years (I also know Mike Johnson). The benchmark is that they should be making pre-tax profits of at least 7.5% of their gross portfolio. Remember, 1pm is lending at effective interest rates of +/- 25%. Its cost of funds are probably around 10%. Allowing for overheads and (reduced) bad debt provisions, its entirely plausable that they should be seeing a net margin of 7.5%. Hope that helps your thought processes.

[22hoper] 19/11/2010 11:52

1pm trading positive on improved market

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19 November 2010 @ 11:11 am BST
Next Markets Article

SME sector lease asset finance provider 1pm said trading in the year to date has been 'very positive'.

Share prices
1pm
Quote Charts News Fundamentals

In its AGM statement, the company said that since its May 31 start, its lease portfolio has grown by 34.5% and at end-October was valued at 8.7m, enhancing its balance sheet.

To support the growth of the lease portfolio, the company had recently secured additional funding lines up to 1.3m. It was in discussions with lenders and confident that further funding lines would be available if required.

Bad debts were 45.3% lower in the first five months due to more proactive credit control and economic improvement.

1pm said it believed the trading improvements partly reflected improving conditions in the lease asset finance market. It was optimistic that trading would remain strong.

The company announced that chairman Mike Johnson, 67, will move to the position of non-executive chairman from December 1 and will continue to focus on new funding opportunities in his new role.

Interim results are expected in January

[saud2237] 19/11/2010 11:50

I genuinely think that the market cap should reflect the lease portfolio because that is the money they have leased...hence I can see it going up to 3p from here.

[the_beagle] 19/11/2010 11:37

Realistically if the lease portfolio is £8.7m, what sort of profit might they be earning? Also if they get access to say £1 million more credit, how could that affect the lease portfolio. Not my line of business so any answers are very welcome.

[ihavenoclue] 19/11/2010 11:23

I feel the most important point, as made the main point of the AGM, is the very sizeable reduction in bad debts

[induna123] 19/11/2010 11:22

Finally ADVFN have updated the market cap.

[moreforus] 19/11/2010 11:14

i'm in (-;

[saud2237] 19/11/2010 11:13

lease portfolio GBP8.7m - current market cap 3

[turkey3] 19/11/2010 11:02

(AIM: OPM)

AGM Statement

1pm plc ("1pm" or "the Company"), the specialist provider of lease asset finance to the SME sector, announces that at the Annual General Meeting held today all resolutions were duly passed. The following statement was given during the meeting:

"As detailed in our recent RNS announcements, trading in the financial year to date has been very positive. Since the start of the financial year (31 May 2010) the lease portfolio has grown by 34.5 per cent. and as at 31 October 2010 was valued at GBP8.7m thus enhancing our balance sheet.

To support the growth of the lease portfolio we have recently secured additional funding lines up to a total of GBP1.3m. We are in discussions with lenders and are confident that further funding lines will be available if required.

One of the disappointments of the financial year to 31 May 2010 was the unusual level of bad debts. I am pleased to report that for the five months to 31 October 2010 total bad debts were 45.3 per cent. lower than the equivalent period last year and we have not seen a repeat of the concentrated number of bad debts received last year. We believe this is due to more proactive credit control and the general improvement of economic conditions.

We believe that the trading improvements experienced are as a result of improving conditions in the lease asset finance market and the hard work and commitment from our experienced staff. We are optimistic that trading will remain strong and expect to report our half year results in January 2011."

In addition, the Company announces that Mike Johnson (67) will move to the position of Non-executive Chairman with effect from 1 December 2010. In his new role Mike will continue to focus on new funding opportunities. Mike has been instrumental in repositioning the Company and his knowledge and experience will continue to be benefited from.

Contacts:

[saud2237] 19/11/2010 10:40

Looking good this morning !!!

[ihavenoclue] 18/11/2010 15:14

I had a little top up at 0.1p ... still expecting them to be quite a bit higher by the end of the month.

Today was a taster of what this share can do IMHO Let's see what tomorrow brings ...

[the_beagle] 18/11/2010 15:03

Well that was short lived, but massive turnover so there must be something happening. I might just have another nibble if they come any lower.

[ihavenoclue] 18/11/2010 14:23

I am not expecting much more today

[fortune44] 18/11/2010 13:51

Just starting to perk up again

[knowing] 18/11/2010 12:49

Limit sell triggered at .1 for a double bagger. Next one NGG

[fortune44] 18/11/2010 12:25

ihavenoclue - 18 Nov'10 - 11:12 - 779 of 785

Something else that is interesting ... the resistance points .. past 0.197p there is nothing until 0.3p which is the years high. The graph also seems to suggest that anything past 0.2p surges to 0.25p at least.


100% agree