1PM

Small-ticket finance provider 1PM (OPM) has achieved a higher profit in the six months to November than in the whole of its previous financial year.

Strong progress across most of its lines of business helped the firm achieve a 238% leap in pre-tax profits to £214,293, on sales up 31% to £1.15m. The lease portfolio jumped 18% to £10.85m and should push further ahead in the current year as the group steps up its efforts to win new clients.

Over the past couple of years, the AIM counter has worked hard on credit control, so bad debts are now falling below its expectations. Demand for MOT bays in garages, as well as catering equipment, remains solid, but 1PM is still keen to expand so this year is moving into the Northern Ireland market – largely via its own list of leasing brokers. The maximum lending amount has also been increased from £30,000 to £40,000.

The company has recently moved to a new head office in Bath that is twice the size of the old premises so should provide plenty of scope to grow. Speaking to Growth Company Investor, managing director Maria Hampton said, 'We have a relatively fixed overhead, so see plenty of scope to bolt on additional business.'

1PM has been profitable for 18 consecutive months, but the second half tends not to be as strong. Still, a record performance for 2012 is in prospect but, as always, the key to its growth will be gaining access to finance at attractive rates. It can offer a 9.25% return for SIPP funds – not a bad return in the current climate. The shares are well followed by penny punters and could reward a speculative flutter.