logo-loader
RNS
viewPCF Group Plc

Trading Statement

/**/ ol{margin-bottom:0cm;}ul{margin-bottom:0cm;}link{ color: blue }visited{ color: purple } .ab{size:595.3pt 841.9pt;margin:42.55pt 72.0pt 49.65pt 72.0pt;}div.ab{}p.ay{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal}p.az{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: normal; margin-bottom: 0cm; text-align: center}p.ba{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";text-align:justify;text-justify:inter-ideograph}span.au{line-height:115%}span.ar{color:black}span.as{background:white}p.bb{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: normal; margin-bottom: 0cm; margin-left: 0cm; margin-right: 0cm; margin-top: 12.1pt}p.bc{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";text-align: center} p.bd{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-bottom:0cm;margin-bottom:.0001pt}p.be{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-bottom:0cm;margin-bottom:.0001pt;text-align: justify;text-justify:inter-ideograph;line-height:normal}table.bf{width:478.8pt;margin-left:-5.4pt;border-collapse:collapse}td.al{width:286.9pt;padding:0cm 5.4pt 0cm 5.4pt}p.bg{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: normal; margin-bottom: 0cm}td.ak{width:24.65pt;padding:0cm 5.4pt 0cm 5.4pt}td.aj{width:134.85pt;padding:0cm 5.4pt 0cm 5.4pt}tr.af{height:40.1pt}td.ai{width:286.9pt;padding:0cm 5.4pt 0cm 5.4pt; height:40.1pt}td.ah{width:24.65pt;padding:0cm 5.4pt 0cm 5.4pt; height:40.1pt} td.ag{width:134.85pt;padding:0cm 5.4pt 0cm 5.4pt; height:40.1pt}p.bh{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-top:0cm;margin-right:0cm;margin-bottom:0cm; margin-left:18.0pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph; text-indent:-18.0pt;line-height:normal}p.bi{margin-top:0cm;margin-right:0cm;margin-bottom:0cm;margin-left:36.0pt;margin-bottom:.0001pt;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-top:0cm;margin-right:0cm; margin-bottom:0cm;margin-left:18.0pt;margin-bottom:.0001pt;text-align:justify; text-justify:inter-ideograph;text-indent:-18.0pt;line-height:normal}p.bj{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:36.0pt;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-top:0cm;margin-right:0cm; margin-bottom:0cm;margin-left:18.0pt;margin-bottom:.0001pt;text-align:justify; text-justify:inter-ideograph;text-indent:-18.0pt;line-height:normal}p.a,li.a,div.a{margin-top:0cm;margin-right:0cm;margin-bottom:10.0pt;margin-left:0cm;line-height:115%;font-size:11.0pt;font-family:"Calibri","sans-serif";} /**/
RNS Number : 9141Q
PCF Group PLC
24 October 2019
 

24 October 2019

 

PCF Group plc

("PCF", the "Company" or the "Group")

 

Trading Statement

 

Lending portfolio reaches £338m, trading in line with market expectation and the Azule acquisition has a very successful first year

 

PCF, the AIM-listed specialist bank, is pleased to advise that for the year ended 30 September 2019 trading is in line with market expectations.

New business originations are 51% ahead of last year at £223m (2018: £148m) and the quality of those originations has met management targets, with 74% (2018: 70%) being in our prime credit grades. Our lending portfolio has grown to £338m, an increase of 54% (2018: £219m) and is close to our £350m target, a year ahead of plan.

Over the year, we have continued to increase our lending to the prime sector, a strategic decision enabled by the reduced cost of funding provided by our banking licence. This is aligned to our cautious outlook for the UK economy. Despite the competitiveness of the prime lending markets for business asset finance and consumer motor finance, our net interest margin has held up well in the year at 7.9% (2018: 8.2%). We continue to reflect our appetite for risk through the pricing of our lending products and our loan impairment charge remains unchanged from the 0.9% reported at the Interim stage.

On 15 October 2019 the Financial Conduct Authority (FCA) announced plans to regulate the way in which some car retailers and brokers in the motor finance sector receive commission. A set of clear rules would address a lack of transparency and serve consumers better. PCF welcomes this initiative from the FCA as we believe that standardised commission rates will ensure better outcomes for customers and a level playing field for motor finance providers.

We have also continued to build on our success in the retail deposit market and our deposit base increased to £265m (2018: £191m). Access to the retail deposit market plus the steps taken earlier in the year to put in place a £15m Tier 2 capital facility, provide our platform for continued growth.

PCF acquired Azule Limited in October 2018. Azule is a UK market leader in the provision of specialist funding services to the broadcast and media industry. Azule originated £77m of new business in the eleven-month period (12 months to June 2018: £55m) and through its hybrid brokerage and 'own book' model generated fee income of £1m (12 months to June 2018: £0.8m). Our first year of ownership has seen excellent results which means that the threshold for the First Deferred Consideration Payment has been met and a £750k cash payment will be made in November 2019.

Our nascent Property Bridging Finance venture has also had a good first nine months with originations of £14m (2018: £NIL).

Scott Maybury, Chief Executive of PCF, commented: 

"The strategy to diversify our asset classes and income streams is proving a great success and playing an important role in growing our lending portfolio. We have made excellent progress against ambitious targets and we continue to deliver strong growth despite the challenging economic and political backdrop. While there may well be some tightening of the economic cycle over the next 12 to 24 months, given the small market share we currently enjoy, we remain confident that we can continue to grow as planned whilst maintaining our prudent appetite for risk.

"We look forward to reporting our Final Results on 4 December 2019."

- end -

This announcement contains inside information.

For further information, please visit https://pcf.bank/ or contact:

 

PCF Group

Scott Maybury, Chief Executive Officer

Robert Murray, Managing Director

David Bull, Finance Director

 

 

Tel: +44 (0) 20 7222 2426

Tavistock Communications

Simon Hudson / Edward Lee / Tim Pearson

 

 

Tel: +44 (0) 20 7920 3150

Panmure Gordon (Nominated Advisor and Joint Broker)

Atholl Tweedie / Joanna Langley - Corporate Finance

Charles Leigh-Pemberton - Corporate Broking

 

 

Tel: +44 (0) 20 7886 2500

Shore Capital (Joint Broker)

Robert Finlay / Richard Johnson - Corporate Finance

Henry Willcocks - Corporate Broking

 

 

Tel: +44 (0) 20 7601 6100

About PCF Group plc (www.pcf.bank)

Established in 1994, PCF Group plc is the AIM-listed parent of specialist bank, PCF Bank Limited. Since commencing operations as a bank in 2017, the Group has increased its lending portfolio significantly, targeting an initial portfolio of £350 million by 2020 and growing to a £750 million portfolio by 2022. The Group will retain its focus on portfolio quality, lending increasingly to the prime segment 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

 

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.

For media enquiries please contact [email protected]


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 [email protected] or visit www.rns.com.
 
END
 
 
TSTMJBITMBBTBRL

Quick facts: PCF Group Plc

Price: 33.5

Market: AIM
Market Cap: £83.82 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

James Dolman discusses PCF Group's Interim results to end of March '18

James Dolman financial analyst at Capital Network is reporting significant progress across the business as PCF continues to grow according to its strategic plan.

on 05/31/2018

RNS

Directorate Change

on 07/25/2019

Director Dealing

on 07/22/2019

Change of Adviser

on 07/19/2019

Half-year Report

on 06/05/2019