Re sults pr e se ntation Ye a r e nde d 31 Ma y 2019 Se pte mb e r 2019
Disc laime r This presentation ("Presentation") has been prepared by 1pm plc (the "Company") and is confidential and is only directed at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other investment professionals, high net worth companies, unincorporated associations or partnerships and the trustees of high value trusts) and persons who are otherwise permitted by law to receive it. This Presentation is directed only at persons having professional experience in matters relating to investments and any investment or investment activity to which this Presentation relates is only available to such persons. Persons of any other description, including those who do not have professional experience in matters relating to investments, should not rely on this Presentation or act upon its contents. This Presentation does not constitute or form part of any offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision in connection with any proposed purchase of shares in the Company must be made solely on the basis of the information contained in the admission document to be published by the Company. While all reasonable care has been taken to ensure that the facts stated in this Presentation are accurate and that any forecasts, opinions and expectations contained herein are fair and reasonable, this Presentation has not been verified and no reliance whatsoever should be placed on them. Accordingly, no representation or warranty express or implied is made to the fairness, accuracy, completeness or correctness of this Presentation or the opinions contained herein and each recipient of this Presentation must make its own investigation and assessment of the matters contained herein. In particular, but without prejudice to the generality of the foregoing, no representation or warranty is given, and no responsibility or liability is accepted, as to the achievement or reasonableness of any future projections or the assumptions underlying them, or any forecasts, estimates, or statements as to prospects contained or referred to in this Presentation. Save in the case of fraud, no responsibility or liability whatsoever is accepted by any person for any loss howsoever arising from any use of, or in connection with, this Presentation or its contents or otherwise arising in connection therewith. In issuing this Presentation, the Company does not undertake any obligation to update or to correct any inaccuracies which may become apparent in this Presentation. This Presentation is being supplied to you for your own information and may not be distributed, published, reproduced or otherwise made available to any other person, in whole or in part, for any purposes whatsoever. In particular, this Presentation should not be distributed to or otherwise made available to persons with addresses in Canada, Australia, Japan, the Republic of Ireland, South Africa or the United States, its territories or possessions or in any other country outside the United Kingdom where such distribution or availability may lead to a breach of any law or regulatory requirements. 2
Who we ar e and what we do A no n-b a nk spe c ia list fina nc e pro vide r • We a re c usto me r o utc o me -le d Income PBT Track Record £000 £000 • We o pe ra te a hybrid mo de l; fle xib ility to e ithe r fund o n o ur o wn b a la nc e 35,000 9,000 she e t, o r to b ro ke -o n to o the r le nde rs 8,000 30,000 7,000 25,000 • All o wn b a la nc e she e t le nding is to UK 6,000 s who me e t o ur c re dit c rite ria SME 20,000 5,000 4,000 15,000 • We b ro ke -o n funding pro po sa ls 3,000 10,000 o utside o ur c re dit c rite ria a nd a ll 2,000 c o nsume r fina nc e 5,000 1,000 - - • We a re multi- produc t pro viding a 2013 2014 2015 2016 2017 2018 2019 ra ng e o f fina nc e pro duc ts tha t One pm Academy Bradgate iloans sma lle r UK SME s re q uire Gener8 Positive CF2U PBT £k • De live re d a robust quantity and quality o f e a rning s 3
Phase 1 strate gy imple me nte d A b usine ss tra nsfo rma tio n 6 site s 1 site 2018 2014 189 sta ff 13 sta ff £19m b o o k £4m re ve nue £142m b o o k £1m pro fit £32m re ve nue £8m o pe ra ting pro fit 4
T he UK mar ke t Sta b le , size a b le to ta l a ddre ssa b le ma rke t • UK e c o no my e mplo ys 27m pe o ple in 5.7m b usine sse s o f whic h 4.5m a re SME s. 43% o f UK c o mpa nie s use e xte rna l funding ; c urre ntly c irc a £25b n o f g ro ss le nding • Of this le nding , c irc a 40% is a sse t o r invo ic e fina nc e ; a ppro xima te ly 1m c o mpa nie s using the pro duc ts we pro vide . Our sha re is <1%, so a hug e ma rke t o ppo rtunity • UK b usine ss inve stme nt (so urc e : F L A a nd UK F ina nc e sta tistic s): • Asse t F ina nc e ha s inc re a se d 8% in 2019 to da te a nd 7% ye a r-o n-ye a r • I nvo ic e F ina nc e sta b le a t 40,000 c o mpa nie s in the UK using suc h fa c ilitie s, b ut a dva nc e s ha ve inc re a se d 20% o ve r the pa st 3 ye a rs, mo stly in sma lle r SME s. Analysis by asse t c lass 2019 y-o-y % c hange Pla nt & ma c hine ry +12 Ne w c a rs -5 Use d c a rs +20 L ig ht c o mme rc ia l ve hic le s +14 Busine ss e q uipme nt +5 I T e q uipme nt +2 5
Our mar ke t positioning Multi-pro duc t o ffe ring UK SME s re q uire a c c e ss to funds to g ro w the ir b usine sse s. Sma lle r SME s in pa rtic ula r a re unde rse rve d b y tra ditio na l b a nks mo ving upsc a le into b ig g e r tic ke t de a ls. 1pm me e ts the ne e d b y pro viding a b ro a d ra ng e o f fina nc e pro duc ts tha t sma lle r SME s re q uire : • Asse t fina nc e • Ve hic le financ e • L oan financ e • Invoic e financ e e ithe r b y pro viding the c a sh dire c t o r b ro king - o n to o the r funde rs. 6
Cor e c ompe te nc ie s Ro b ust le nding c rite ria , pro c e sse s a nd risk/ re wa rd pric ing • Spre ad is funda me nta l in SME le nding a nd c re a te s a na tura l he dg e : • L a rg e st se c to r b y va lue a nd numb e r o f de a ls < 5% o f po rtfo lio C c o de s – to p 10 se c to rs a c c o unt fo r o nly 1/ 3rd o f the po rtfo lio • Multiple SI • L a rg e st le a se c . £450k. Ave ra g e de a l size £15k. L a rg e st I F fa c ility c . £1.0m. Ave ra g e £150k. • L T V a dva nc e o n ha rd a sse ts, typic a lly 70%; o n I F fa c ilitie s, typic a lly 55% o f sa le s le dg e r • Se c urity is pa ra mo unt a nd time ly fo llo w-up e sse ntia l: • Pe rso na l g ua ra nte e s fro m the dire c to rs/ pro prie to rs o f e a c h SME fo r a ll so ft a sse t le a se s a nd lo a ns • Assiduo us fo llo w-up o n a rre a rs a nd impa irme nts, turning impa ire d de a ls into Cha rg ing Orde rs • Stro ng tra c k-re c o rd in c o lle c tio ns; c irc a 70% o f impa ire d va lue re c o ve re d o ve r the pa st 10 ye a rs • Ma rgin is risk-pric e d to fa c ilita te ro b ust g ro wth: • Po lic y de c isio n no t to re la x pric e o r c re dit c rite ria to c ha se a g g re ssive to p -line g ro wth • Ne t inte re st ma rg in o f c .12% 7
Robust busine ss mode l Re a so ns we sta y stro ng thro ug h the c re dit c yc le sity – o f intro duc e r c ha nne l, a sse t c a te g o ry, le nding pro duc t, se c to r, g e o g ra phy, • Spr e ad and dive r de a l size a nd de a l q ua lity a ting mode l fle xibility – le nding a nd b ro king • Ope r re silie nc e – lending to independent businesses for ‘staple - diet’ consumer products, not • Bor rowe r multiple -o utle t, re ta il c ha in b usine sse s re lia nt o n disc re tio na ry spe nd Small individual e xposure s – me a ning tha t impa ire d re c e iva b le s c a n typic a lly b e re c o ve re d thro ug h • c ha rg ing o rde rs a nd pa yme nt pla ns Huma n unde rwriting – e ye s o n e ve ry de a l • RS9 – c a rrying b a d de b t pro visio ns ro ug hly twic e the a mo unt o f • Ade quate provisions in line with IF a nnua l ne t write -o ffs a te de a ls – no e xpo sure to inte re st ra te rise s fo r b usine ss a lre a dy writte n • F ixe d inte re st r 8
F Y19 F inanc ia l Highlights So und like -fo r-like , ye a r-o n-ye a r pe rfo rma nc e ✓ • T o ta l de a l o rig ina tio n £161.0m fro m £142.9m +13% • ✓ Re ve nue £31.8m up fro m £30.0m +6% ✓ • Pro fit b e fo re ta x a nd e xc e ptio na l ite ms £8.1m up fro m £7.8m +4% ✓ • Ne t a sse ts £53.8m up fro m £47.7m +13% ✓ • F ully dilute d e a rning s pe r sha re 6.6 pe nc e pe r sha re up fro m 6.5 +2% ✓ • Ble nde d c o st o f b o rro wing 3.9% do wn fro m 4.1% - 5% ✓ • F unding fa c ilitie s £167.1m up fro m £162.6m +3% ✓ • Ba d de b t pro visio n 1.9% o f ne t po rtfo lio up fro m 1.6% +19% Note: Comparisons taken from reported statutory accounts, as restated for IFRS9 9
Recommend
More recommend
