Slide 1: Final Results Presentation Year ended 31 May 2020
Final Results Presentation Year ended 31 May 2020 September 2020
Slide 2: Disclaimer
Disclaimer 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 perso
Slide 3: 1pm at a glance
1pm at a glance We focus on providing the best solution for our clients, because we put them at the heart of everything we do. Our financial solutions inspire confidence and enable our clients to thrive and prosper. Delivering a range of financial solutions to boost British business Asset Finance Ve
Slide 4: Our Key Achievements
Our Key Achievements Revenue Providing of over £123m £29m Originated of funding to UK £147m businesses at of new funding deals 31 May 2020 during the year Over £55m 179 of equity on the balance sheet Supporting Award some employees across 20,000 winning 6 UK sites SMEs nationwide £3m profit before t
Slide 5: Our Leadership Team
Our Leadership Team 1pm is led by a dedicated and experienced team who form the Operating Board. This diverse body of 10 senior leaders is 50% female with an array of knowledge and expertise. 1pm champions leadership at all levels, with the age range of the Operating Board spanning 40 years. Working
Slide 6: Overview of the Group
Overview of the Group • A non-bank, specialist finance provider to SMEs MISSION • Trading subsidiaries with regulated activities are Goal: To be the non-bank speciality finance FCA authorised provider of choice Purpose: To grow together, adding Scale, • A hybrid model; a lender with the flexibility
Slide 7: Recent deal examples
Recent deal examples Asset Finance Invoice Finance • Food Manufacturer • Fashion and Textile Manufacturer • £77,000 Asset Finance Facility (£50k own book funded & • £400,000 Invoice Finance Facility £27k brokered) • In response to Covid-19, the firm had secured a large NHS • The business had recentl
Slide 8: New business introduction channels
New business introduction channels Asset Finance Loans Invoice Finance Vehicle Finance • Soft and Hard Asset • Residential and • Introducers - a few • Used car dealers Finance Brokers Commercial large nationals, but and online direct • Equipment Mortgage brokers mostly local applicants Suppliers and
Slide 9: Robust business principles
Robust business principles • Risk-mitigating spread – of introducer channel, asset category, lending product, sector, geography, deal size and deal quality • Operating model flexibility – lending and broking • Borrower resilience – typically lending to independent businesses for ‘staple-diet’ consum
Slide 10: Covid-19 response
Covid-19 response Incident Management Team IMT formed to take a ‘crisis-management’ approach – weekly meetings from March through to July 2020 Four guiding principles established and maintained 1. a dedicated focus on the health and safety of the Group’s employees and their families 2. an uninterrup
Slide 11: FY20 Financial Results
FY20 Financial Results Trading was In line with guidance through to Q3 (February 2020). Guidance withdrawn in March 2020 due to impact of Covid-19. FY20 FY19 Change • Total deal origination £147.0m £161.0m -9% • Revenue £29.2m £31.8m -8% • Profit before tax and exceptional items, £3.0m £8.1m -63% af
Slide 12: Asset Finance
Asset Finance Deal origination Own-book vs broked-on 54.2 29% ANNUAL TOTAL YEAR TO MAY 20 71% 41.3 36% 20.5 YEAR TO MAY 19 HARD ASSETS 64% 12.6 0% 20% 40% 60% 80% 21.7 VENDOR INTRODUCED SOFT ASSETS 18.8 Broked-on Own book deals 12.0 BROKER-INTRODUCED SOFT ASSETS 9.9 0 10 20 30 40 50 60 Portfolio Bus
Slide 13: Invoice Finance
Invoice Finance Origination - new facilities Portfolio 21.2 ANNUAL TOTAL 22.8 17.4 MAY 20 £M 0.36 10.6 IF SOUTH 7.1 36.0 10.6 MAY 19 £M IF NORTH 0.36 10.3 0 5 10 15 20 25 0 5 10 15 20 25 30 35 40 Invoice Finance Year to May 20 £m Year to May 19 £m Value of deals £m Number of deals £k – discounting a
Slide 14: Loans
Loans Deal origination Portfolio 7.8 31.5 MAY 20 £M PERSONAL PROPERTY LOANS - BROKED 0.49 31.1 9.9 MAY 19 £M 0.62 4.2 BUSINESS LOANS - OWN-BOOK 4.2 0 2 4 6 8 10 12 Value of deals £m Number of deals £k Own book 0 5 10 15 20 25 30 35 business Loans, Year to May 20 £m Year to May 19 £m Broked-on proper
Slide 15: Vehicle Finance
Vehicle Finance Vehicle deal origination - capital value Number of vehicles supplied 48.9 5187 ANNUAL TOTAL 54.1 MAY 20 £M 4422 765 32.9 USED - ALL CONSUMER 31.6 5137 16.0 MAY 19 £M 4076 NEW - BUSINESS AND CONSUMER 22.5 1061 Broked-on Business & Personal, 0 10 20 30 40 50 60 0 1000 2000 3000 4000 50
Slide 16: Diversified lending
Diversified lending Credit risk management – no major concentrations £ M's Top 10 by Principal o/s (leases, loans, HP) & credit facility (invoice financing) - % Top 10 by deal number - % 7 Unlicensed restaurants 6.5 6 Licensed restaurants Maintenance & repair of 5 vehicles 4.0 3.9 Public houses & ba
Slide 17: Portfolio
Portfolio Year-end portfolio impacted by Covid in Q4, forbearance and early settlements 31-May-19 31-May-20 Q4 FY20 Q1 FY21 Total Gross v alue of receiv ables £m 141.7 122.9 Requested forbearance - no. of deals 1869 185 2054 Future interest income £m 17.6 15.2 Granted forbearance - no. of deals 1046
Slide 18: Funding partners
Funding partners Key funding partners: NatWest, British Business Bank, Aldermore, Siemens, Hitachi and Investec Key Funding Lines - £m Facility Usage at 31 May 2020 Headroom Bank Overdraft 1.0 0.0 1.0 Block Funding lines (no non-utilisation fees) 102.8 47.0 55.8 Secured MTN & other HNW loans 27.0 7.
Slide 19: CBILS accreditation
CBILS accreditation • CBILS provides financial support to SMEs losing revenue and cash flow disrupted as a result of Covid-19 • A lender can provide finance in the form of term loans, overdrafts, invoice finance or asset finance. 1pm’s accreditation is for Loans and Asset Finance • Lending still in
Slide 20: Balance Sheet (£m) and key KPIs
Balance Sheet (£m) and key KPIs 31/5/20 31/5/19 KPIs skewed by Covid-19 and by the “one-off” bad Assets debt provision increase in Q4. Non-Current Assets 77 82 Current Assets 62 76 Total Assets 139 158 FY 20 FY 19 Equity • Net Interest Margin 12% 12% Retained Earnings 21 20 Share capital & premium 3
Slide 21: Strategies
Strategies – unchanged despite COVID-19 1. Build scale through both organic growth and carefully selected acquisitions when conditions allow 2. Reduce cost of borrowing through optimising size, term, cost and mix of funding lines 3. Increase own-book lending while maintaining broker panel relationsh
Slide 22: Summary and outlook
Summary and outlook • 1pm has a strong balance sheet; policies and characteristics that lead to a robust trading model; a strategically sound market position; and a pre-COVID track record of delivering expected financial results • The Group has responded effectively to the business impact of COVID-1
Slide 23: 1pm plc – top shareholders May 2020
1pm plc – top 10 shareholders 31 May 2020 % 88,985,316 Fund Manager Holdings £18,241,990 Clov erleaf 374 Limited 20.00% 17,796,173 Gpim Limited 18.09% 16,093,461 Russell R Esq 12.34% 10,977,967 Hargreav es Lansdow n 8.72% 7,759,887 Interactiv e Inv estor Trading Limited 4.11% 3,653,844 Indiv iduals
Slide 24: Appendices
Appendices iPM
Slide 25: Competition
Competition Fragmented sector - few companies at scale in small-ticket lending Banks Challenger Banks Alternative finance Private companies Quoted companies HSBs lend to SMEs, Also lessors, but do Quantum Finance platforms Tend to be single but no longer not operate in the and regional Growing secto
Slide 26: The 1pm plc Group of companies
The 1pm plc Group of companies 1pm plc Company Registration: 05845866 1pm (UK) Limited Academy Leasing Sterling Asset Gener8 Finance Positive Cashflow Intelligent Financing (Onepm Finance) Limited Finance (UK) Ltd Limited Finance Limited Limited Company Reg: Company Reg: Company Reg: Company Reg: Co