PCF Pcf Group Plc

TIDMPCF

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 that reduction.

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.

End

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

 
 PCF Group (via Tavistock Communications)     Tel: +44 (0) 20 
  Garry Stran, Interim Chief Executive         7920 3150 
  Officer 
  Caroline Richardson, Chief Financial 
  Officer 
 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 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 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 property.

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCDKDBNPBDKCKB

(END) Dow Jones Newswires

October 21, 2021 02:00 ET (06:00 GMT)

Pcf (LSE:PCF)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024

Pcf (LSE:PCF)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024