1pm Share Discussion Threads

[owenski] 18/5/2017 08:15

At the moment this is an Avoid company for me.

[cheshire man] 18/5/2017 08:15

Well stops hit first thing,,,,,back on the watchlist ,,,,

[horndean eagle] 18/5/2017 08:10

It is quite shocking. If I were an existing holder I would be pretty livid. Less so if you have come in on the placing. Even then you have to be worried that management leg you over in future. Never a good sign when management have no respect for the value of the companies paper. They should really have walked away from the deals once 45p was thrown into the mix.

[spig69] 18/5/2017 08:01

I wish I had sold out a month ago. I've heavily invested here for my SIPP and all it has done is go down over the last 12 months from around 70p to now. Acquisitions haven't exactly added the promised EPS with more or less flat profits for the last financial year. Very, very disappointing. Management needs to take a serious look at themselves!

[maiken] 18/5/2017 08:01

dilution of 26% for existing shareholders excluded from the placing even if they take up the open offer.34% dilution if they don't participate.
Suggests to me private shareholders' interests are not a priority for the board and I will view the company accordingly going forward.
They also say they expect acquisitions will be earnings accretive in 2 years,which is another way of saying they will be DILUTIVE initially [unsurprisingly given the low rating the shares stand on currently].
£800,000 of our money paid in fees to "advisors" for this privilege.
My initial impression is one of deep disappointment.

[shanklin] 18/5/2017 07:49

Much lower placing price than the 60p on 28-Jul-15. These guys may be building a business but I am not convinced they are doing too much for the share price Glad I sold out of OPM a month or so ago.

[owenski] 18/5/2017 07:22

That's quite a discount

[strollingmolby] 15/5/2017 16:05

Seems the company is on a funding round - has anyone seen the press speculation:

"The Company notes the recent press speculation and confirms that it is in the advanced stages of conducting a fundraising in the region of £10 million in order to accelerate organic growth and to fund potential acquisitions in the invoice finance sector. The Directors intend to offer an additional material element of any such fundraising to existing shareholders of the Company, on a pre-emptive basis, through an open offer on the same terms.

A further announcement on the potential fundraising will be made in due course."

[cheshire man] 21/4/2017 10:03

RNS Number : 6194C
1PM PLC
18 April 2017


Lombard Odier Asset Management (Europe) Limited increased holding to 18.97

[owenski] 12/4/2017 08:54

Commentary from the CEO on the recent acquisition;

[maiken] 12/4/2017 08:41

I agree it looks cheap and I have a few although I'm always nervous of growth through acquisition especially in a sector like this.Still,that's their stated policy so you pays your money...
plus it's pretty illiquid [at least whenever i've tried to deal]so I suspect it would be very hard to get out of in the event that the facts start to change.
Management is pretty new also.
I continue to watch with interest.

[cheshire man] 12/4/2017 08:11

Well your post brought a few buyers in GHF so you may not have the tread all to yourself for much longer :-)

[glasshalfull] 11/4/2017 22:01

1PM

Feels like my own private investment thread ;-)

I last posted a month ago following the earning enhancing iLoans acquisition. Cenkos upgraded earnings by (+6%) for 17/18, raising adj diluted EPS to 7.5p from 7.0p.

OPM aren't let the grass grow under their feet & announced a further acquisition today of Bell Finance which adds scale to their Asset Finance Division. Their broker has consequently upgraded the upgraded earning figures by a further (+5%)!!!

1pm will hope to reduce Bell's existing funding costs through delivering economies of scale through the elimination of duplicate costs.

Cenkos indicate that they acquired Bell on a multiple of 6.5x PBT & that it will be earnings accretive in 17/18. The new FY begins in June.

They conclude,

In FY18, recognition of a full year of Bell leads to a 5.3% increase in adj EPS to 7.9p p/s (was 7.5p p/s), with a dividend of 1.02p p/s (was 0.97p) now expected....Excellent value on book and earnings basis - 1pm trades on a FY18E PER of 7.4x and a p/book multiple of 1.1x. This represents exceptional value relative to alternative finance peers; such as closest peer P&CF (FY18E PER 13.7x, 1.9x book).

---

Share price 59.5p (mid) & the latest upgrade places the shares on a prospective PER of 7.5 for 2017/18 which almost prices them at c.45% discount to peer PCF (Private & Commercial Finance Group) on both an earnings & also price to book basis.

Look great value to me.


Kind regards,
GHF

[glasshalfull] 18/3/2017 11:22

1PM

Another lovely quiet thread. Share price +14% in the last few days following the iLoans acquisition...and zero posts!

Looks like a decent acquisition to me, with Cenkos upgrading forecasts & indicating that it will be +6% earnings enhancing in 17/18 - year end May, so negligible impact in remaining couple of months of the current financial year.

Update from Cenkos indicates,

"...iLoans brokers second charge (45%), commercial (40%) and bridging (15%) property loans to a panel of funders for commission income. Deals are originated from a network of introducers to small businesses and consumers seeking credit. By acquiring, 1pm is seeking to self-fund future bridging loans which offer short-term, low risk, and highly profitable rewards, while continuing to broke-on remaining business for commission. The deal also offers cross-selling opportunities with brokers to the existing 1pm business."

"...iLoans’ business will be combined with existing Onepm Finance business loans (currently a £14m book) to form the Loans division. The division represents shorter term lending (3-12m) which will be backed by the more flexible SLNP in addition to existing block funding arrangements."

The initial consideration represents a multiple of 3.0x EBITDA. iLoans received commission income of £1.5m (from 250 transactions) in the year ending 31 Jan 2017, which produced EBITDA of £0.4m and PBT of £0.3m.

Cenkos have upgraded 17/18 forecasts for earnings upgraded by +6.0% which raises adj diluted EPS from 7.0p to 7.5p & places shares on a PER of 8.2 (based on mid-price of 62p).

They retain 5.9p adj diluted EPS for the current year which ends shortly (31.05.2017).

Cenkos conclude that OPM offers,

"...Excellent value on book and earnings basis - 1pm trades on a 17/18 PER of 7.8x and a p/book multiple of 1.3x. This represents exceptional value relative to alternative finance peers; such as closest peer P&CF (FY18E PER 13.6x, 1.8x book)."

---

Kind regards,
GHF

[kabo87] 04/3/2017 01:11

HTTPS://www.americanbankingnews.com/2017/03/03/summit-therapeutics-plc-smmt-receives-consensus-rating-of-buy-from-analysts.html

[x54v] 15/2/2017 12:06

Just been tipped in the IC by Simon Thompson

[glasshalfull] 05/2/2017 13:43

Jamielein / Spig69 - Thanks for your comments.

As an OPM investor pre-consolidation I made the decision to come back on board a week or so ago when a lump of stock became available at 55p.

The interims contained a few issues which you've touched on, but as Academy and BBFL have ramped up the self-funding aspect of deals, this has sacrificed the up-front broker commissions, reducing margins & immediate earnings.

So for me it's was important to ascertain if they will deliver as per full year estimates after lukewarm interims.

Bad debt write-offs have increased to £0.25m from low base of £0.15m. An area to watch but again I would expect this to rise given the increase in lending.

The future provision also increased to £1.2m representing 1.64% of total receivables versus £0.92m in the previous year which represented 1.57% of total receivables. Again, % consistent with the previous years provision.

Cenkos indicate,

"Going forward, we expect 1pm’s impairment rates to continue to impress however, it is expected some addition to impairment provision will be made given current economic uncertainty. It is expected that the impairment provision will be maintained at c1.5% of total receivables to factor in additional prudence."

For the current year to May 2017 Cenkos maintain £16.5 turnover / £4.3m PBT / 5.8p Adj EPS (PER 10). So as mentioned, stalling EPS growth although +22% EPS growth factored in for 2017/18 with 7.1p EPS forecast.

IMHO the current price offers decent re-entry point while I understand your reticence given the static earnings progression.

Finally, Cenkos note,

"On an earnings basis, 1pm lags the peer group average P/E of 12.7x earnings and in particular its closest peer, P&CF (16.9x). Should the peers average be applied to 1pm earning’s, a market capitalisation of £43.2m equivalent to a price of equivalent to share price of 79.2p per share (34% upside)."

Best wishes to you both.

Kind regards,
GHF

[spig69] 05/2/2017 07:51

Jamielein, I have also held for many years. Your comments regarding the bad debts and provisions worry me too. Why they have bought so many companies diluting shareholders in the process without increasing EPS is a mystery. The EPS makes very poor reading. I sold a lot last week and I have been here for more than 6 years. Anyone can increase turnover but at what cost? And a placing around 60p to fund these purchases has not produced much at all. At the end, it is all about EPS and share growth. 1PM should have stuck with the original business - that seems to be performing well. I am another disappointed investor - these were in my SIPP and I reluctantly sold as there has been no movement in share price for a few years now.

[jamielein] 04/2/2017 11:35

I've held these shares for several years but I reluctantly decided to sell my remaining holding on Friday. The stalling in EPS growth and the chart were two of the main factors in my decision.

They would've been better sticking to their original organic growth rather than making acquisitions that diluted shareholders.

Bad debt write-offs have increased (albeit from a very low base) - I don't understand enough to know whether there's a risk of a further increase in the future, but write-offs can't go down much from here since they're already very low.
The future provisons have also increased.

Based on the chart, I think the market might have lost confidence in OPM, which cemented my decision to sell.

[salpara111] 31/1/2017 12:51

Well, here we are again at the 3 year low, as someone who has been in for about 2 years and supported the rights issue I would have to confess to being seriously disappointed.
They have pretty much delivered to target so I am at a bit of a loss to understand what is going on.
I guess they need to dramatically ramp up the divi to generate some interest as rising profits are clearly not doing the job.

[tomps2] 23/1/2017 09:44

gdjs100 thanks, yes, you're right no exceptionals. (Sorry it was the layout of the words that confused.)

It seems they're totally in line with broker expectations. As you say "a slow burner".

[gdjs100] 20/1/2017 15:13

There weren't any exceptionals this time round - where do you see that?

[tomps2] 20/1/2017 14:59

Does anyone know what the exceptional item of c£2m was? I can't see reference to it.

[gdjs100] 19/1/2017 21:43

Thanks David and Shanklin, just listened to the Mello presentation again which confirms their intention was to do exactly this. Slow burner this one!