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lse:opm

#1

Excellent set of results for 1PM, and things can only get better,

i anticipated a share price nearer £1 by now, but it appears some investors are holding back, why i don’t know as year on year the company has grown stronger,

The fact that a lot of Major banks are reluctant to lend, can only improve 1PM’s position, as more small companies approach them for funding, which can only enhance turnover and profits.

Looking very good for the future


#2

I agree Izzy but I think the year will result in flattish results as investment in th business takes over. Because of this investors will stand back until the benefits come through. Quite wrong IMO and an opportunity to pick up more stock for the longer term.


#3

Sorry BOWOOD i just don’t get it, this isn’t a company that is selling goods, goods that are not selling, the book stands at £24 million, with most coming back with interest, plus they have money in the bank, they have moved to bigger offices, and are looking to employ more staff, all that could be paid for out of the interest they are getting,

The more they lend the more they will earn, but what ever way you look at it, the company must have a valuation of around £36 million, there are just over 36.5 million shares in circulation, which has to make the shares worth at least £1,

so i consider the shares well under valued.


#4

You are right of course but we now have more shares in issue so eps will stagnate for a while and net earnings may fall back as the cost of development has to be absorbed. The sp could fall back a little as the position is consolidated.


#5

My figures were based on the present share capital of 36.55 shares in issue, BOWOOD, so the present results reflect that, and the larger offices and the relocation cost will more than pay for them selves, by the extra business they will generate.

Plus there is no real need to borrow more as they have a few million in the bank, with lending repayments also being used for future business, 1PM must surely be self funding.

I did notice if you wanted to invest a few grand, they are paying around 6% interest, which is a lot better than you would get in a bank.

Good luck


#6

We will be fine but I suspect able to pick up a bit more stock sub 60p Don’t forget that the earnings per share are based on the weighted average of 31.5m shares rather than the 36.5m in issue.