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Hardman research

lse:opm

#1

1pm

16 Jan 2018 10:18:32

1PM PLC

RNS Number : 0064C

1PM PLC

16 January 2018

Hardman Research: Interim results: delivering value-added strategy

Interim results: delivering value-added strategy - The results confirm 1pm is on track to deliver the substantial profit growth the market expects. We believe greater confidence in delivery will be a trigger for re-rating as the current May 2019E P/E of 6.5x and P/B of 0.8x are inconsistent with a profitable, growing company. The results also confirm impairment losses, although rising modestly, remain well controlled and more than priced into lending, and that provisions coverage is increasing. Funding continues to be well diversified and the average cost of funds is down nearly a third. We expect the second half to show a continuation of these trends, together with more integration benefits.