25th Sep 2019 11:49
(Alliance News) - Business finance provider 1PM PLC on Wednesday hiked its dividend payment after reporting "record" annual revenue.
In the year ended May 31, revenue rose by 6.0% to GBP31.8 million from GBP30.0 million with pretax profit broadly flat at GBP7.9 million.
On an adjusted basis, pretax profit rose by 3.8% to GBP8.1 million from GBP7.8 million. 1PM recorded exceptional costs of GBP221,000 compared with a GBP254,000 gain recorded last year.
The firm reported that newer units performed in line with expectations. In 2017, 1PM acquired Positive Cashflow Finance Ltd in a deal worth up to GBP9.0 million and in 2016, it purchased Bradgate Business Finance Ltd for up to GBP2.8 million in cash and shares. Both companies achieved "full realisation of earn-out consideration", 1PM added.
1PM declared a final dividend payment of 0.56 pence per share, giving a total payout of 0.84p, up 29% from 0.65p paid a year ago.
Looking ahead, the company said it has "strong visibility" on future earnings. Roughly half of its revenue for the new financial was already secured as "unearned income", totalling GBP17.6 million at May 31, the company explained.
Non-Executive Chair John Newman said: "I am pleased to report that the group has delivered a further year of robust performance and growth. The financial year was a period of development for the group with the businesses previously acquired as part of the group's "buy and build" strategy focused on operational performance and on delivering organic growth.
"The achievement of a number of earn-out targets has demonstrated the success of the strategy and the continuing commitment of the local management teams. The focus of our strategy is for our group to be a well-diversified and risk-mitigated alternative finance provider, recognised as having a comprehensive range of business finance products to offer to an expanding base of UK SMEs and consumers."
Shares in 1PM were 4.1% higher at 31.50p each in London on Wednesday morning.
By Eric Cunha; [email protected]
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