1PM (OPM) Issues Shares After Its Acquisitions Continue To Perform Well
Business finance provider announced earn-out targets for were achieved for Positive Cashflow Finance Ltd, its recently acquired Invoice Finance business.
1PM acquired Positive Cashflow for £9m in June 2017, including £2.5m in share issues as part of a 3 year earn-out deal.
“The earnout involved hitting some challenging growth targets and to fully achieve them reflects well on the strength and potential of Positive as a business” said Chief Executive Officer Ian Smith.
He added the performance and that of other successful acquisitions “adds to our conviction that we have acquired and successfully integrated well run, growing businesses”
The company has had 6 acquisitions past 3 years – which has been driving strong strategic and organic growth in revenues and profits.
The acquisitions have allowed the company to become a leading multi-product provider, having diversified across both geographies and industry sectors, with all arms of its businesses having significantly contributed to revenue, with no single particular business line supporting others.
As a result it posted revenues for the year of £30.0m (2017: £16.9m), an increase of 78%, of which organic growth was 31%, and profit before tax for the year of £7.9m (2017: £4.1m), an increase of 93%.
Ian Smith, Chief Executive Officer, commented: "Our strategy of being a multi-product provider to SMEs and consumers, plus the flexibility to either fund, or broke-on, has enabled the Group to generate robust levels of demand and hence these strong results.”
The company has stated it does not plan any future acquisitions – given that they now have the infrastructure, capacity to deliver services, and the product range to meet the demand of UK SME’s, the enterprises underpinning the UK economy.
Because the company is focused on UK businesses, a no deal Brexit is not likely to impact the company, however clients who deal with customers in the EU may face cash flow difficulties.
This will actually provide opportunities for 1PM to deliver more financing products and services. The company has increased impairment provisions and plans further increases, to mitigate any risks that may arise.
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