PCF Group PLC Update on Restatement of 2020 Preliminary Results
RNS Number : 7892P
PCF Group PLC
21 October 2021
21 October 2021
PCF Group plc
("PCF", the "Bank" or the "Group")
Update on Restatement of 2020 Preliminary Results
Further to the announcement of 10 September 2021, in which PCF
announced that the restatement of profit before impairment of
goodwill and tax for the year ended 30 September 2020 would now
result in a reduction of profit greater than GBP750,000, the Group
has undertaken further detailed analysis to establish the extent of
As part of the previously announced review into the Group's
financial controls and reporting processes, the Group's impairment
methodology was reviewed with a particular focus on receivables
which were either seriously in arrears or where the asset which
acted as security for the receivable had been sold and a balance of
the receivable remained outstanding ("defaulted receivables").
Following this review and a subsequent review of impairment
levels it has now been determined by the Group that the historical
expectations in respect of the collectability of these defaulted
receivables requires revision resulting in an additional impairment
charge of GBP6 million which will be applied to the results for the
year ended 30 September 2020.
Taking that FY19/20 impairment charge into account, along with
other adjustments (principally from the financial controls review
and the increased cost of the full year 2020 audit), the new
revised reduction to the preliminary result for profit before
impairment of goodwill and tax for the year ended 30 September 2020
will now be approximately GBP7 million. This will bring the
statutory loss before tax for that period to approximately GBP5
million. The Group still has headroom above its regulatory capital
requirements, including Pillar 2 buffers.
In light of the increased impairment charge, the Group also
reviewed its strategy for managing these defaulted receivables.
Following this review, the Group sold the majority of these
defaulted receivables to a specialist debt purchaser. As part of
that strategy, going forward it is envisaged that periodic smaller
sales of defaulted receivables will now be undertaken by the Group
on an ongoing basis to give certainty to the valuation of this
category of assets, and to enable operating efficiencies for the
Group by reducing the operational time and costs that managing such
defaulted receivables involves.
More generally, the extensive work being undertaken as part of
the review of the Group's financial statements, completion of the
annual report and accounts for the year ended 30 September 2020 and
the investigative review of the Group's financial controls and
reporting processes has been exhaustive and is now well progressed.
The PCF Group would like to thank all shareholders again for their
patience and support during this time and will provide further
updates in due course.
PCF's shares remain suspended from trading.
For further information, please visit https://pcf.bank/ or
PCF Group (via Tavistock Communications) Tel: +44 (0) 20
Garry Stran, Interim Chief Executive 7920 3150
Caroline Richardson, Chief Financial
Tavistock Communications Tel: +44 (0) 20
Simon Hudson / Tim Pearson 7920 3150
Peel Hunt (Nominated Advisor and Joint Tel: +44 (0) 20
Broker) 7418 8900
Andrew Buchanan / Rishi Shah /
Sam Milford / Jasmine Kanish
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
-- 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 provides finance to the broadcast and media industry; and
-- Property bridging finance which provides loans to companies
and sole traders investing in residential and commercial
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(END) Dow Jones Newswires
October 21, 2021 02:00 ET (06:00 GMT)
Gráfica de Acción Histórica
De Nov 2021 a Dic 2021
Gráfica de Acción Histórica
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