Shares in Bath-based 1pm, which provides finance to small and medium-sized businesses, climbed by nearly 8% yesterday after it announced a £2.5m expansion of its business and released an update trading statement.
The firm said it had negotiated additional bank finance made up of a new £2m facility and a £500,000 increase to an existing facili
ty. The funding will be used exclusively to write new business.
It is also said trading during the first quarter of 2014 had been “very positive” and, due to the success of a recently-introduced business loan product, it is to increase the ceiling on individual loans from £15,000 to £25,000.
Chief executive Maria Hampton, pictured, said: “The additional block discounting facilities will contribute significantly towards the company’s continued expansion and we very much appreciate the support that our funding panel is providing.
“The total amount of new funding raised since May 31, 2013, now stands at £7.3m. The funding will allow us to satisfy the continuing strong demand for finance from the SME sector.”
Chairman Ian Smith added: “Against a backdrop of continued strong trading we are delighted to be announcing both new and increased funding facilities which are testament to the quality of the business being underwritten, the strong results being consistently delivered by the company and its growing reputation within the market place.
“These additional facilities are a further enabling step towards the company achieving its growth ambitions whilst continuing to focus on its core strength of providing much needed finance to SMEs.”
1pm announced an 84% increase in half-year profits to £609,000 in January on a 37% rise in revenue to £1.95m.
1pm's shares carried on rising today, closing at 66.4p, up 2p – or 3.1% – on the day.
