PCF Group PLC Strong trading and new initiatives support growth (2017F)
March 06 2020 - 2:00AM
UK Regulatory
TIDMPCF
RNS Number : 2017F
PCF Group PLC
06 March 2020
6 March 2020
PCF Group plc
("PCF", the "Company" or the "Group")
Strong trading and new initiatives support growth
PCF, the AIM-listed specialist bank, will hold its Annual
General Meeting ("AGM") at 10.00am today at 1 Cornhill, London,
EC3V 3ND. The meeting will also be available on a live video
stream.
At the AGM, Chief Executive, Scott Maybury will make the
following statement to shareholders :
"I am pleased to report that trading in the first five months of
the current financial year has been strong and in line with
management's expectations.
"New business origination in the five-month period to 29
February 2020 was 30% ahead of the comparative period last year at
GBP127m (2019: GBP98m). We are also pleased to report that the
quality of originations has been maintained with over 79% (2019:
76%) of originations being in our prime credit grades. The lending
portfolio has grown by 55% to over GBP395m as at the end of
February 2020 (2019: GBP255m) and this is supported by retail
deposits of GBP346m (2019: GBP202m).
"A key initiative for FY2020, which forms part of our strategy
to further improve the credit risk profile of our business, was the
launch of our automated prime proposition for consumer motor
finance. After a trial with a small number of broker relationships
in late 2019 the product and enhanced functionality were launched
on 27 January 2020.
"In our first full month of the new product's operation we can
report that year on year, the comparative volumes for February show
an increase in consumer motor lending of 80%. This has raised the
prime credit quality statistics of this division in the month to
93%. This prime business attracts a lower net interest margin than
our near prime originations but is expected to deliver both lower
loan loss impairment charge and administrative expense. This is an
exciting start for this product and proves our model to build
portfolio scale and strong operational gearing in the
medium-term.
"Our other business lines continue to grow. Business Finance
volumes in the five-month period to 29 February 2020 increased 5%
compared to the same period in 2019 with an increased proportion of
the Azule broadcast and media equipment written on our own balance
sheet. The bridging property finance portfolio as at 29 February
2020 was GBP21m, having only commenced business this time last
year.
"In the period we have continued to invest in our operating
platform, infrastructure and human resources to prepare the Group
for our medium-term target of a GBP750 million portfolio by
September 2022. This investment includes a recent premises move
which provides headcount capacity and our employees with an
excellent working environment.
"The world economy faces increased economic concerns over
Covid-19 and there remains uncertainty over the UK's transition to
an independent trading nation. It is therefore important we
maintain our cautious risk appetite and remain proactive towards
these challenges.
"We have confidence in the short-term as we build on our market
share in diversified markets and can take comfort from the GBP75m
of unearned operating income, in respect of future years, already
present on our balance sheet. In the medium-term our return on
equity target of 15% remains in place. We look forward to providing
a further update on 3 June 2020 when we will announce our half-year
accounts for the six-month period ending 31 March 2020.
"Finally, I would like to bring to shareholders attention the
latest corporate presentation which is available on our website or
in hard copy for those attending the AGM in person today."
- end -
For further information, please contact:
PCF Group plc Tel: +44 (0) 20 7222
Scott Maybury, Chief Executive Officer 2426
Robert Murray, Managing Director
David Bull, Finance Director
Tavistock Communications Tel: +44 (0) 20 7920
Simon Hudson / Edward Lee/Tim Pearson 3150
Panmure Gordon (Nominated Advisor and Tel: +44 (0) 20 7886
Joint Broker) 2500
Atholl Tweedie / Joanna Langley - Corporate
Finance
Charles Leigh-Pemberton - Corporate Broking
Shore Capital (Joint Broker) Tel: +44 (0) 20 7408
Henry Willcocks - Corporate Broking 4080
About PCF Group plc ( www.pcf.bank )
Established in 1994, PCF Group plc is the AIM-quoted parent of
the specialist bank, PCF Bank Limited. Since commencing operations
as a bank in 2017, the Group has increased its lending portfolio
significantly from GBP146million to GBP395million. The Group will
retain its focus on portfolio quality and has the capability to
lend increasingly to prime segments of its existing finance
markets. The Group has also recently diversified its lending
products and asset classes through acquisition and by setting up
new organic operations.
PCF Bank currently offers retail savings products for
individuals and then deploys those funds through its four lending
divisions:
-- Business Finance which provides finance for vehicles, plant and equipment to SMEs;
-- Consumer Finance which provides finance for motor vehicles to consumers;
-- Azule Limited which provides finance to the broadcast and media industry; and
-- Bridging Property Finance which provides loans to companies
and sole traders investing in residential property.
The Group has a track record of strong financial performance and
an efficient and scalable business model, with significant room to
grow. Utilising its technologically advanced platform, the Bank
provides both depositors and borrowers with a high level of service
and a straightforward, simple range of products tailored to suit
their needs.
For media enquiries please contact media@pcf.bank
Recently recorded video profiles of PCF's Bridging Finance,
Azule Broadcast Equipment Finance, and Savings divisions are
available at the Company's profile page on the London Stock
Exchange website:
https://profile.lsegissuerservices.com/PCFGroup/overview.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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