Latest Updates On Three AIM Stocks - 1pm Plc, Netcall Plc and Hornby Plc

1pm plc is a financial service holding company based out of the United Kingdom. The company provides funding to small and medium sized enterprises (SMEs) for the purchase of business assets. The company offers finance under four verticals asset financing, invoice financing, loan and vehicle financing. The asset financing services of the group are available through Academy Leasing Limited, Onepm Finance and Bradgate Business Finance. Under invoicing finance, the group’s services are available through Positive Cash Flow Finance and Gener8 Finance, under loans the services of the group are available through Onepm Finance and Intelligent Loans and for vehicle financing, the services of the company are available through Academy Leasing Ltd and CarFinance2u. The 1pm SME lending product is available to all types of small and medium business enterprises. The money lent may also be used for associated business expenditures like Audit fees, Website design and maintenance.

The shares of the company are listed on the AIM segment of the London Stock Exchange where they trade with the ticker name OPM.

Financial Review.

For the year ended 31 May 2019, the company came out with its final results on 25 September 2019.

• The revenue of the company for the year stood at £31.8 million, which was an increase of 6 per cent over £30.0 million revenue reported in 2018.
• The fully diluted earnings per share of the company for the year stood at 6.61 pence per share which is an increase of 2 per cent over 6.46 pence fully diluted earnings per share reported for 2018.
• The total dividend for the year (combined interim paid and final proposed) stands at 0.84 pence per share whereas for 2018 it was 0.65 pence per share which is an increase of 29 per cent.

Source - Company’s Annual results published on 25 September 2019.

Stock price performance at the London Stock Exchange

Price Chart as on 25 September 2019, before the market close (Source: Thomson Reuters)

On 25 September 2019, at the time of writing the report (before the market close, GMT 12.16 PM), OPM shares were trading on the London Stock Exchange at GBX 31.48.

The stock has a 52-week High of GBX 55.75 and a 52-week low of GBX 23.12. The total market capitalization of the company was around £26.79 million.

Outlook

The economic and political environment in the United Kingdom is casting a shadow on all business in the country in general. Despite this, the company continues to be prudent in business approach and will make sure that its impairment provisions are sufficient with scope for further appreciation given the uncertain economic and political climate.

The company would be making investments in people and the business infrastructure during the year ahead, which would carry additional costs and will be a constraining factor on profit growth in the current year. However, these costs are one-time expenditures and are instrumental in securing the company’s planned strategic growth and ensure enhancement in shareholder value creation during the next five years.

Netcall Plc

Netcall Plc is a business services providing company based out of United Kingdom, providing business process services to the Financial Services, Insurance, healthcare, public utilities and private sectors in that country. The company has a client base of over 600 customers who use its liberty platform to avail of its services. The Liberty platform has three broad-based functionalities to aid its clients, Liberty create; accelerates app development, Liberty connect; integrates with any messaging platform using a single API and liberty converse; improvise services and agent performance. The company also provides app sharing and app integration services to its customers. The services of the company can be modified as per the requirements of the client in each of these sectors. Other than that, the company also provides to its clients’ deployment services, at the client site and also cloud and hybrid services. It also provides professional services like training, support services and Solution Care on client’s request.

The shares of the company are listed on the AIM segment of the London Stock Exchange where they trade with the ticker name NET.

Financial Review

For the year ended 30 June 2019, the company came out with its final results on 25 September 2019.

• The revenue of the company for the year were up by 5 per cent to £22.9 million whereas for the year 2018 the revenues were £21.9 million.
• The Total annual contract value ('ACV') of the company as on 30 June 2019 was up by 10 per cent year over year, standing at £15.7 million whereas on 30 June 2018 it stood at £14.2 million.
• The Profit before tax of the company for the year increased to £0.75 million whereas in 2018 it was £0.05 million.

Source - Company’s Annual results published on 25 September 2019.

Stock price performance at the London Stock Exchange

Price Chart as on 25 September 2019, before the market close (Source: Thomson Reuters)

On 25 September 2019, at the time of writing the report (before the market close, GMT 4.26 PM), NET shares were trading on the London Stock Exchange at GBX 25.00.

The stock has a 52-week High of GBX 65.55 and a 52-week low of GBX 25.25. The total market capitalization of the company was £36.37 million.

Outlook

During the year the company invested nearly £2 million across its verticals in support of its business strategy of all-round expansion. This strategy has helped the company garner substantial growth in bookings in all its divisions; commercial, healthcare and public services sectors.

For the year 2019, the board of the company intends to declare a final dividend of 0.20 pence per share, which is broadly as per the company’s dividend policy to pay-out 25 per cent of the adjusted earnings per share as dividend to shareholders every year.

Hornby Plc

Hornby Plc is a United Kingdom based holding company. It makes toy and model railway for recreation uses and as collectable for enthusiasts. The company’s toys and models are marketed through a number of diverse mediums, including its online portal and multiple retailers within the United Kingdom and also in foreign markets. Other than its base country of the United Kingdom the company’s toys and railway models are also available in the United States of America and continental Europe. The company sells its toys and models under Hornby Railroad, Skaledale, SkaleScenics, Arnold-N1:160, Jouef- H01:87, Lima-H01: 87, Kivarossi-H01:87, Electrotren-H01:87 and Arnold-TT. In addition to Train Sets, Locomotives, Train Packs, Tracks, Wagons, Coaches, Spares and related accessories are also provided by the company. The company has subsidiaries in Spain, United States of America, Italy, France and Germany who promote and distribute company’s products in their respective countries.

The shares of the company are listed on the AIM segment of the London Stock Exchange where they trade with the ticker name HRN.

Financial Review

For the year ended 31 March 2019, the company came out with its final results on 13 June 2019.

• The revenue of the company for the year was £32.8 million whereas for 2018 it was £35.7 million.
• The reported loss after tax of the company for the year was £5.3 million whereas for 2018 Reported loss after tax was £9.9 million.
• The exceptional expense items of £0.6 million for the year include costs relating to the relocation of the business and refinancing carried out in 2018.

Source - Company’s Annual results published on 13 June 2019.

Stock price performance at the London Stock Exchange

Price Chart as on 25 September 2019, before the market close (Source: Thomson Reuters)

On 25 September 2019, at the time of writing the report (before the market close, GMT 01.39 PM), HRN shares were trading on the London Stock Exchange at GBX 28.3.

The stock has a 52-week High of GBX 39.94 and a 52-week low of GBX 25.00. The total market capitalization of the company was £33.66 million.

Outlook

Over the last eighteen months, the company has created the foundations for its future growth across all verticals of its business. The company now has a firmer grip on its business. It is currently looking forward to the future, and there is an upbeat mood reverberating through the corridors of its ancestral home in the town Margate where it has relocated earlier this year.

The company has contemplated the effect of multiple Brexit scenarios across its business verticals. The major issues worrying the company are the inbound procurement of stock and outbound flow of sales in a no deal outcome scenario. The company is confident that inbound issues can be resolved although with some delays in the short run whilst customs procedures and potential tariffs settle down.