1pm : Interim Results

1pm plc (the "Group" or the "Company") 19 January 2017 INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2016 Further profitable organic and strategic growth delivered; Revenue increased 52%; Profit before tax increased 23%; Positive outlook for the full year

1pm plc (AIM: OPM), the AIM listed independent specialist provider of finance facilities to the SME sector, announces financial results for the six month period ended 30 November 2016 ("Interim Results").

The Interim Results consolidate the results for 1pm (UK) Limited (trading as Onepm Finance ("Onepm")), Academy Leasing Limited ("Academy") and Bradgate Business Finance Limited ("Bradgate"). Each of the Group's three trading subsidiaries continue to experience high levels of demand for finance from the SME sector across the range of products offered, comprising asset finance (finance lease and hire purchase) for 'hard' and 'soft' assets, business loans and vehicles broking.

Financial Highlights:

• Group revenue increased 52% to £7.99m (H1 2016: £5.25m)

• Group profit before tax increased 23% to £2.05m (H1 2016: £1.66m)

• Basic earnings per share increased 5.8% to 3.08 pence (H1 2016: 2.91 pence)

• Net Assets at 30 November 2016 increased 19.7% to £28.6m (31 May 2016: £23.9m)

• Bad debt write-offs in the period were £0.25m (H1 2016: £0.15m)

• At period end, total bad debt provisions were £1.22m representing 1.64% of total receivables (H1 2016: £0.92m representing 1.57% of total receivables)

• £15.1m of deferred income, i.e. future revenue, as at 30 November 2016 (31 May 2016: £14.3m)

  Operational Highlights:

• Total Group asset, loan and vehicles business origination in the six-month period to 30 November 2016 increased 82% to £36.4m (H1 2016: £20.0m)

• Maintained flexibility to either fund on 'own-book' or generate cash commissions from broking; approximately 24% of new lease contracts brokered for commission income at Academy and Bradgate.

• Combined 'own-book' assets and loans portfolio of £71.8m (31 May 2016: £66.5m),

• Funding facilities available to the Group of £62.0m at 30 November 2016 (31 May 2016: £62.2m)

• Operational progress at each subsidiary in line with management's expectations and objectives

Commenting on the Interim Results, John Newman, Chairman, said:

"These Interim Results demonstrate the continuing trend of profitable organic growth at Onepm finance, the original company within the Group and the anticipated strong growth from Academy and Bradgate, the acquired businesses. The Board is committed to increasing shareholder value by delivering sustainable growth and is actively pursuing further organic and strategic opportunities in the current financial year. Accordingly, the Board looks forward to the second half of the financial year with optimism and confidence."

For further information, please contact:
1pm plc
Ian Smith, Chief Executive Officer	01225 474230
Helen Walker, Chief Financial Officer	01225 474230
Cenkos (NOMAD)
Max Hartley (NOMAD), Julian Morse (Sales)	0207 397 8900
Walbrook PR	0117 985 8989
Paul Vann	07768 807631
[e-mail]

About 1pm:

The Company was admitted to AIM in August 2006.

1pm plc is a group of established independent finance companies focused on providing SMEs with accessible funding to add value to their businesses. All customers must have good credit histories and proven ability to repay their finance commitments.

Mission Statement - 'Helping the UK economy grow by supporting SMEs' More information is available on the Company website www.1pm.co.uk

CHIEF EXECUTIVE OFFICER'S STATEMENT FOR THE SIX-MONTH PERIOD ENDED 30 NOVEMBER 2016 Financial Results

I am pleased to report that the Group continued to make good progress during the first half of the current financial year. The financial results achieved for the six months ended 30 November 2016 ("the period") give cause for optimism in the outcome of the full year to 31 May 2017.

Group revenue amounted to £7.99m (H1 2016: £5.25m). This comprised £4.23m (H1 2016: £3.74) at Onepm Finance, an organic increase of 13.1% and £3.76m at the acquired subsidiaries, Academy and Bradgate (H1 2016: £1.51m). Included in revenue at Academy and Bradgate is £1.03m of commission income in respect of the broking-on of equipment and vehicle contracts.

Profit before tax increased to £2.05m (H1 2016: £1.66m). Profit after tax in the period rose to £1.64m (H1 2016: £1.31m). Earnings per share ("EPS") increased 5.8% to 3.08p (H1 2016: 2.91p). EPS has been calculated on a weighted average basis taking into account the issue of 1,960,270 new ordinary shares on 6 October 2016 in connection with the earn-out arrangements relating to the acquisition of Academy Leasing Limited in 2015. At the period end a total of 54,523,771 ordinary shares were in issue.

The Group paid a single final dividend in respect of the financial year ended 31 May 2016. It is the Board's intention to continue this policy in the current financial year with one dividend payment, being a final dividend, in respect of the current financial year ending 31 May 2017.

At the period end, the Group's consolidated net assets stood at £26.8m (H1 2016: £23.9m), an increase of 12.1%.

Operations

In the period, the Group continued to experience strong demand across its product range from its core SME customer base. It originated £36.4m of new lease, hire purchase, loan and vehicles contracts, an 82% increase over the same period last year (H1 2016: £20.0m). This comprises the net effect of increases in lease and vehicles contracts and the anticipated reduction in loan contracts origination, which amounted to £1.7m. All of the vehicles contracts and approximately 24% of new lease and hire purchase contracts originated in the period by the Group were broked-on to generate commission income at Academy and Bradgate.

At the period-end the Group's combined 'own-book' lease and loan portfolios stood at £71.8m, comprising £42.0m at Onepm Finance, £20.5m at Academy and £9.3m at Bradgate. The average contract value in the portfolio in the period was £14.2k (H1 2016: £10.8k) with no single customer representing more than 0.35% of the total portfolio value (H1 2016: 0.21%). During the period, the Group's strict credit and underwriting controls were maintained, with £0.25m written off as bad debt (H1 2016: £0.15m). Total provisions at 30 November 2016 were £1.22m, representing 1.64% of total receivables (H1 2016: £0.92m representing 1.57% of total receivables).

Strategy

The stated goal of the Group's current strategic plan formulated in late 2014 is to achieve a market capitalisation of £100m. The objectives that will enable this goal to be achieved and which shape the strategic plan are:

• operating a model of distributed separate subsidiary entities

• having a multi-channel and multi-product offering for business lending to SMEs

• maintaining risk mitigation through having both funding and broking capability

• being 'digitally capable'

• strictly adhering to underwriting policies and credit control procedures

• being geared appropriately with cost-effective funding facilities

Current levels of business activity throughout the Group give the Board confidence in pursuing its further strategic growth plans. These will include the addition of complementary products, further development of financial technology, an expanded funding mix to include a wider range of borrowing facilities and consideration of potential further acquisitions.

In summary, the Board is maintaining an unwavering commitment to support the SME sector, whilst pursuing ambitious, but risk-assessed growth plans to deliver increased shareholder value.

Board Changes

As announced on 22 June 2016, Helen Walker will be leaving the Company's employment on 31 May 2017. The Company has made significant progress towards the recruitment of a Chief Financial Officer to replace Helen and anticipates being able to provide a specific market update in the near future.

Risks and uncertainties

There are a number of potential risks and uncertainties which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The directors do not consider that the principal risks and uncertainties have changed since the publication of the annual report for the year ended 31 May 2016. A detailed explanation of the risks summarised below, and how the Group seeks to mitigate the risks, can be found on page 37 of the annual report which is available at www.onepmfinance.co.uk.

Credit Risk:

The directors believe that credit risk is limited due to debts being spread over a large number of receivables contracts.

Interest rate and liquidity risk:

No liabilities are subject to variable rates of interest.

Going Concern

As stated in note 1 to the condensed financial statements, the directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements.

Responsibility Statement

We confirm that to the best of our knowledge:

1. the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';

2. the interim management report includes a fair view of the information required by Disclosure and Transparency Rules ("DTR") 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

3. the interim management report includes a fair view of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).