logo-loader
viewPCF Group Plc

PCF happy with diversification strategy as loan book grows

Snapshot

Target of £350mln on the loan book set to be passed soon

money

Quick facts: PCF Group Plc

Price: 35.5 GBX

AIM:PCF
Market: AIM
Market Cap: £88.82 m
Follow

"The strategy to diversify our asset classes and income streams is proving a great success"

Scott Maybury, Chief executive

What it does:

PCF Group Plc (LON:PCF), which became a fully operational bank in July 2017, specialises in motor finance and loans for businesses.

It lends to consumers and small and medium-sized companies wanting to buy cars, commercial vehicles, engineering equipment, motorhomes and horse boxes.

The bank recently extended its reach to the broadcast and media industry by agreeing to buy Azule Limited for up to £5.6mln.

How it's doing

Loans outstanding rose 55% to £339mln with profits for the twelve months to September climbing by 54% to £8mln.

The bank said of its £276mln new loans during the year almost three-quarters were in its top four credit grades, which was up four percentage points on the year before.

Broadcast and media specialist Azule, acquired at the end of 2018, chipped in £54mln of new business and more than expected.

Retail deposits totalled £267mln (2018: £191mln) with over 6,250 retail deposit customers (2018: 4,500)

Dividend for the year rose by 33% to 0.4p.

What the boss says: Tim Franklin, chairman

"We are close to our £350mln portfolio target a year ahead of plan," Franklin said in December.

“Our lending portfolio is performing well, however, we acknowledge that there may well be some worsening of credit conditions over the next 12 to 24 months and we will maintain a cautious outlook."

Inflexion points

  • Target of £350mln on the loan book set to be passed soon
  • PCF want loans of £750mln by 2022 and £1bn in the 'medium-term'.
  • More acquisitions similar to Azule
  • Economic backdrop improves if Brexit is resolved

Add related topics to MyProactive

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...

In exchange for publishing services rendered by the Company on behalf of PCF Group Plc named herein, including the promotion by the Company of PCF Group Plc in any Content on the Site, the Company receives from said...

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

Trading Statement

on 10/24/2019

Directorate Change

on 07/25/2019

Director Dealing

on 07/22/2019

Change of Adviser

on 07/19/2019

2 min read