TIDMOPM
RNS Number : 8930L
1PM PLC
05 May 2020
5 May 2020
1pm plc
("1pm", the "Group" or the "Company")
Coronavirus Business Interruption Loan Scheme accreditation
and
COVID-19 update
1pm plc (AIM: OPM), the AIM listed independent specialist
provider of finance facilities to UK SMEs, is pleased to announce
that it has been approved for accreditation as a lending partner
under the Government's Coronavirus Business Interruption Loan
Scheme ("CBILS"). CBILS is administered by British Business Bank.
In addition, the Company provides a further update on the impact of
COVID-19 on the Group's business activities.
CBILS accreditation
The British Business Bank has approved 1pm Finance (UK) Ltd, a
wholly-owned subsidiary of the Company, which trades as Onepm
Finance ("Onepm"), for accreditation as a participating lender
under CBILS.
Since the beginning of the COVID-19 crisis, 1pm has resolved to
remain open for new business to support credit-worthy, robust SMEs
as well as helping its existing 20,000 customers. Becoming an
accredited lender will enable the Group to expand its lending in
the form of leases and loans to UK small business customers across
the UK impacted by the COVID-19 pandemic with the benefit for the
Group of a government-backed guarantee for the loan repayments due
from the borrower.
The Group is in the process of determining the amount of funding
it expects to be able to deploy for CBILS related lending and the
Board is confident that becoming an accredited lender, subject to
the allocation and availability of suitable funding, will have the
potential to make a significant impact on the number of new lending
agreements.
The CBILS accreditation will provide an additional means for 1pm
to deliver support to SMEs, adding to the Group's current lending
activities in the form of Asset Finance, through wholesale finance
facilities provided by British Business Bank and a range of
challenger banks; Loan Finance through the Group's Secured Loan
Note programme; and Invoice Finance through a back-to-back facility
provided by RBS/NatWest.
In addition to the government-backed guarantee, the Government
will make a Business Interruption Payment to cover the first 12
months of interest payments due and charges levied. It is
anticipated that following a short period of preparation to be
undertaken in conjunction with British Business Bank, including
staff training and entry into underlying agreements, Onepm will be
in a position to commence lending under CBILS during May 2020.
Onepm thereafter intends to be an active lender for the duration of
the CBILS scheme.
James Roberts, Chief Financial Officer, commented:
"We are delighted to have been approved to become an accredited
partner to the UK Government's lending programme helping us to
deliver additional funding to UK small businesses when they need it
most. Small businesses are the lifeblood of the UK economy and 1pm
is pleased to be able to assist where we can during this critical
time."
COVID-19 Update
As stated in the Group's COVID-19 update on 26 March 2020, the
principles by which the Group is operating are:
-- a dedicated focus on the health and safety of the Group's employees and their families
-- an uninterrupted seamless service for customer and client transactions
-- unwavering support to viable businesses for which finance solutions have been provided
-- remaining open for new business to support credit-worthy, robust SMEs
The Group is pleased to report that after seven weeks of remote
working, operations continue to be effectively and successfully
carried out in respect of all four of these principles. The Group
has used the Coronavirus Job Retention Scheme and furloughed
approximately one-third of its 184-strong workforce.
The highest proportion of furloughed staff are employed in the
Group's vehicles and property loans brokerage businesses where
trading volumes have reduced significantly. These activities
account for less than 10 per cent of the Group's profit before tax,
since the majority of the Group's revenues and profits are
generated from its lending activities.
Supported by CBILS, lending will continue strongly in certain
business sectors, particularly those identified as critical. These
include lending to SMEs in the food supply chain (agriculture,
transportation and retail); medical, pharmaceutical and healthcare;
IT and telephony; waste disposal and industrial cleaning; and
certain sub-sectors in manufacturing.
In common with most businesses operating in the non-bank,
specialist lending sector, 1pm has seen a number of existing
borrowers requesting payment delays, holidays, or similar
forbearance as they adjust to substantial losses of revenue. The
Group has to date received forbearance requests from approximately
25 per cent of its borrowers, representing approximately 15 per
cent of the Group's portfolio by value.
As previously announced and consistent with the Company's
standard approach, 1pm has dealt with these in-bound requests from
borrowers on a case-by-case basis in agreeing to provide
appropriate support.
1pm will continue to support credit-worthy customers and
businesses so that they can resume normal trading at a future date.
It is impossible to predict with any accuracy what the coming
months will hold for the UK's economy and, therefore, as a
responsible finance provider, the Group will continue to be prudent
and in so doing will make additional impairment provisions in the
current financial year ending on 31 May 2020.
The Board confirms that 1pm has a strong financial base to
operate from with a robust balance sheet (showing unaudited Net
Assets of GBP56.1m as at 30 November 2019), with operational
liquidity, covenant headroom, and committed funding facilities for
current lending activities. The Company's lenders continue to be
unanimously supportive of the Group.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
For further information,
please contact:
1pm plc
Ian Smith, Chief Executive
Officer 07768 394162
James Roberts, Chief Financial
Officer 01225 474230
Cenkos (NOMAD)
Max Hartley / Ben Jeynes
(Nomad)
Julian Morse (Sales) 0207 397 8900
Walbrook PR 0207 933 8780
Paul Vann 07768 807631
paul.vann@walbrookpr.com
About 1pm:
1pm's strategy is to focus on providing or arranging the finance
UK SMEs require to fund their businesses and arranging vehicle and
property-backed finance for consumers. The multi-product range for
SMEs includes asset, vehicle, loan and invoice finance facilities.
The Group operates a "hybrid" lending and broking model enabling it
to optimize business levels through market and economic cycles.
This information is provided by RNS, the news service of the
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END
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