1pm Plc (LON:OPM) (OPM, 0.06p, £1.74m), the provider of asset finance facilities to SMEs, has agreed a new funding line of up to £0.8m at an interest charge of 11% per annum, from its non-executive director Ron Russell. We are please the group has received funding, given our previous concerns regards the small net cash position and higher levels of cash burn. However, the facility from a Board member suggests the group was unable to secure additional funding from the banks and the market. The 11% interest charge also represents the high risk. The facility is drawn down in two tranches of £0.4m each and is repayable in 48 equal instalments. There is no time limit on the availability of the facility. The new funding will enable the group to grow its lease portfolio and enhance sales. We move our recommendation to a HOLD.
Avon Rubber (LON:AVON) (AVON, 163p, £50.08m) Stronger than expected performance across the group means it will exceed current market expectations (House broker Arden looking for £6m PBT with 12.3p EPS) so a move to at least £6.6m and 13.5p EPS puts the group on a prospective PER of 12x. H2 was buoyed by the launch of a new Milk-Rite dairy product together with reduced costs due to outsourcing which will benefit 2011 for a full year. The respiratory side looks set for a better 2011 as well as it has achieved full US government approval for its new filter line in Cadillac which should double capacity. We maintain the BUY with a raised price target of 202.5p
ClearStream (CTN, 24.0p, £11.06m) Prelims for the specialist supplier of medical devices for the year ended 31 July 2010, are in line with market expectations. Revenues increased by 9% to €15.1m (2009: €13.9m), but lower gross margins to 29.4% (2009: 40.9%) and higher research and development costs drove adjusted PBT to decline to €0.53m (2009: €1.9m) and adjusted diluted EPS to fall to 1.12c (2009: 6.51c). Net cash stood at €0.87m (2009: €0.69m). The significant investment in manufacturing facilities will now meet the growth in demand and the benefits are reflected in H2 2010. The order book is strong, standing at a record €3m. The extension of the co-labelling contract with Cordis, approval of products for sale in…
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