Through a trading update, AIM-listed independent lender 1pm has reported that its profit before tax was "significantly above current market expectations" for the year ended 31 May 2015. The final results are expected to be announced in the second half of July.
Following the update, stockbroker WH Ireland has upgraded its pre-tax profit expectations for 1pm from £1.3m (1.77m) to £1.6m, while it expects the lender’s revenue to reach £5.6m (up from £4.2m in 2014).
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1 pm said that the increase in profits and revenues was driven by the strong demand for finance from SMEs and lower costs, particularly in relation to bad debts.
The lender’s asset finance and loan portfolios increased substantially year-on-year. The new business written in the year ended 31 May 2015 rose to £16.1m from £10.8m reported in the previous year. The total portfolio amounted to £30m which represents a 47% increase over last year (£20.4m in 2014).
Ian Smith, chairman at 1pm said: "This is a strong financial performance for the financial year and all the more pleasing given that it has been a year of investment for the future and expansion of resources. The relocation to new offices is complete, recruitment is on-track and additional expenditure has been incurred in business development. All of these initiatives are beginning to yield anticipated growth, as shown in the fact that new business origination of £5.5m over the last quarter of the year was a record achievement."
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