Shareholders in Bath-based specialist lender 1pm are to receive their first dividend after the firm achieved its fifth year of strong organic growth.
Pre-tax profits for the year to May 31 rose by 20% to £1.62m on revenues up 31% at £5.5m on a surge in new business and a significant increase in business loans. The firm also said it was looking at potential merger and acquisition opportunities to continue its expansion.
1pm, which provides small business loans and asset finance up to £50,000, is to pay shareholders a dividend of 0.35p per share – its first since the company floated on the London Stock Exchange’s AIM market in August 2006. 
The firm said it had “significantly strengthened” its balance sheet during year with net assets at May 31 of £12.4m against £7m last time.
Bad debts and provisions as a percentage of the portfolio were at an all-time low of 0.85% at the year-end compared to 1.29% in the previous 12 months.
New business written during the year climbed by 49% to a record £16.1m while its lease portfolio increased 26% to stand at £25.2m at the year-end. Customer numbers rose by 26% to 3,727 and its business loans portfolio soared to £5m at year end from just £500,000 last time.
The firm relocated to larger offices on Lower Bristol Road earlier this year and recruited 10 additional staff during the year.
Non-executive chairman Ian Smith said: “The trading performance is all the more pleasing given that the year to May 31 was, as planned, a year of investment in resources across the group to help maintain its continued growth.
“The business has delivered these strong financial results through a combination of factors, including its unwavering commitment to the SME sector at a time when other sources of finance for SME businesses remains difficult to secure, its adherence to rigorous underwriting and credit control processes, the loyalty of its growing network of over 150 finance brokers across the UK and not least the hard work and dedication of the company’s award-winning executive directors and the entire 1pm staff.”
Chief executive Maria Lewis, pictured, added: “The group has again exceeded market expectations. Demand for our products and services remains buoyant. Monthly sales have doubled since the last financial year and the board is confident that new business origination will continue to increase over the next 12 months.
“The board remains focussed both on organic growth, including the introduction of new financial products, and potential merger and acquisition opportunities as they arise. The board has a clearly stated strategic plan to significantly grow the business and to increase shareholder value commensurately, which will require both. We are confident this plan can be delivered.”
