TIDMPCF

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 GBP338m, 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 GBP223m (2018: GBP148m) 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 GBP338m, an increase of 54% (2018: GBP219m) and is close to our GBP350m 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 GBP265m (2018: GBP191m). Access to the retail deposit market plus the steps taken earlier in the year to put in place a GBP15m 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 GBP77m of new business in the eleven-month period (12 months to June 2018: GBP55m) and through its hybrid brokerage and 'own book' model generated fee income of GBP1m (12 months to June 2018: GBP0.8m). 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 GBP750k 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 GBP14m (2018: GBPNIL).

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                                        Tel: +44 (0) 20 7222 
  Scott Maybury, Chief Executive Officer           2426 
  Robert Murray, Managing Director 
  David Bull, Finance Director 
 Tavistock Communications                         Tel: +44 (0) 20 7920 
  Simon Hudson / Edward Lee / Tim Pearson          3150 
 Panmure Gordon (Nominated Advisor and            Tel: +44 (0) 20 7886 
  Joint Broker)                                    2500 
  Atholl Tweedie / Joanna Langley - Corporate 
  Finance 
  Charles Leigh-Pemberton - Corporate Broking 
 Shore Capital (Joint Broker)                     Tel: +44 (0) 20 7601 
  Robert Finlay / Richard Johnson - Corporate      6100 
  Finance 
  Henry Willcocks - Corporate Broking

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 GBP350 million by 2020 and growing to a GBP750 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 media@pcf.bank

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.

END

TSTMJBITMBBTBRL

(END) Dow Jones Newswires

October 24, 2019 02:00 ET (06:00 GMT)

Pcf (LSE:PCF)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024 Haga Click aquí para más Gráficas Pcf.
Pcf (LSE:PCF)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024 Haga Click aquí para más Gráficas Pcf.