TIDMPCF

RNS Number : 3964W

PCF Group PLC

18 August 2022

18 August 2022

PCF Group plc

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

Disposals of Loans

As announced by the Company on 21st October 2021, PCF's strategy is to dispose of defaulted receivables through periodic asset sales on an ongoing basis. This will give certainty to the valuation of this category of receivables for impairment purposes and enable operating efficiencies for the Group by reducing the operational time and costs that managing such defaulted receivables involves.

As part of this strategy, PCF has now entered into a debt sale framework agreement ("Framework Agreement") with Azzurro Associates Limited ("Azzurro"). Azzurro is authorised by the Financial Conduct Authority (FCA) and the Solicitors Regulation Authority (SRA) and is registered for the Business Standards of the Lending Standards Board.

The Framework Agreement consists of pre-agreed contractual terms valid for 36 months whereby PCF will be obliged to offer to sell to Azzurro for cash consideration defaulted receivables on a "right of first offer" basis, subject to subsequent agreement on price between the parties.

The Company has also agreed to effect the first sale under this Framework Agreement of defaulted receivables for a net consideration of GBP0.4m in cash (the "Disposal"). The carrying value of this loan book at closing yesterday was at GBP0.31m.

The Disposal is a Substantial Transaction under the AIM Rules for Companies by virtue of the combined value of this and a previous transaction for the sale of the defaulted receivables between the parties on 30 September 2021 for GBP3m in cash. In aggregate, the defaulted receivables sold had a carrying value of GBP1.7m, which realised a total gain on sale of GBP0.9m in the financial year ended 30 September 2021. The proceeds will be applied to the liquidity and funding needs of the Group's business. As required by the AIM Rules for Companies the Company is required to provide certain information on the Substantial Transaction which is set out in this announcement.

ENDS

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

 
 PCF Group (via Tavistock Communications)     Tel: +44 (0) 20 
  Garry Stran, Chief Executive Officer         7920 3150 
  Caroline Richardson, Chief Financial 
  Officer 
 Tavistock Communications                     Tel: +44 (0) 20 
  Simon Hudson / Tim Pearson                   7920 3150 
 Peel Hunt (Nominated Adviser and Joint       Tel: +44 (0) 20 
  Broker)                                      7418 8900 
  Andrew Buchanan / Paul Shackleton 
  / Oliver Jackson 
 Shore Capital (Joint Broker)                 Tel: +44 (0) 20 
  Henry Willcocks / Guy Wiehahn                7408 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 continues to focus on portfolio quality and lending to the prime segments of its existing markets. The Group will continue to identify opportunities to diversify its lending products and asset classes by setting up new organic operations or through acquisition.

PCF Bank currently offers retail savings products for individuals and then deploys those funds through its four lending divisions:

   --     Business asset finance which provides finance for vehicles, plant and equipment to SMEs; 
   --     Consumer motor finance which provides finance for motor vehicles to consumers; 
   --     Azule which brokers finance to the broadcast and media industry; and

-- Property bridging finance which provides loans to companies and sole traders investing in residential and commercial property.

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END

DISBKOBBKBKBDFD

(END) Dow Jones Newswires

August 18, 2022 02:00 ET (06:00 GMT)

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