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1PM - Finance group on prospective PE of 7.8

October 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • OPM
  • Price:
  • 53p
The booming Challenger Bank sector in the UK has been well-documented. But there is one UK asset-based lender to SMEs, 1PM (OPM; 53p), that is yet to attract a strong investment following. Part of the explanation is that investors are expecting impairment for bad debts to increase from present low levels if we get a mild recession, which could be brought on by weaker consumer and business confidence driven by on-going Brexit concerns. But I think that a prospective PE of just 7.8 looks too cheap, even if you are cautious.During the month I met with 1PM’s chief executive, Ian Smith, who took the reins in 2014. The business itself has been listed since 2006 when it raised £1.3m. As Smith says, when the business started up ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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