1pm, the AIM-listed independent finance provider, saw profits for the year ended 31 May 2019 increase 4% year-on-year to £8.1m.

Revenues increased 6% to £31.8m, up from £30m in 2018.

1pm said these figures were in line with market expectations, and had driven the results from its ‘hybrid’ funding model, enabling it to both write business on its own book and to broke-on to third party funders. It said deals written on its own book from internal cross-selling of the Group’s products during the year of £4.8m (2018: £1.9m), an increase of 2.5 times.

The total dividend for 2019 (combined interim paid and final proposed) of 0.84 pence per share (2018: 0.65 pence per share), increased 29%.

The business said that 50% of revenue for the current year to 31 May 2020 had already been secured as “unearned income”.

On current trading and prospects, Ian Smith, chief executive officer, added: “In what have remained uncertain prevailing business conditions, we are delighted to be reporting continued year-on-year growth in revenue and underlying profits. The results for the year ended 31 May 2019 demonstrate the strength of our market position, our multi-product offering and our flexible operating model. The Group is well-positioned to deliver further strategic growth in order to increase shareholder value over the next five years.”

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1pm said its write-off levels were consistent, with net recoveries from previously written-off receivables, and write-offs in the year amounted to £0.6m, representing approximately 1% of the year-end own book net portfolio (2018: approximately 1%).

Bad debt provisioning increased, with a balance sheet provision held at 31 May 2019 of 1.9% of the net lending portfolio (2018: 1.5%).

Additionally, acquisitions performing in line with management expectations with the full realisation of earn-out consideration for two more acquired entities – Positive Cashflow Finance and Bradgate Business Finance – during the year.

John Newman, non-executive chairman, 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 focussed 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.”