PCF Group (PCF)

Sector:

Banking

Index:

FTSE AIM All-Share

 19.20p
   
  • Change Today:
      0.000p
  • 52 Week High: 38.00
  • 52 Week Low: 13.50
  • Currency: UK Pounds
  • Shares Issued: 250.24m
  • Volume: 0
  • Market Cap: £48.05m
  • RiskGrade: 310

PCF Group makes 'strong' start to financial year

By Josh White

Date: Friday 06 Mar 2020

LONDON (ShareCast) - (Sharecast News) - Specialist bank PCF Group said trading in the first five months of the current financial year had been "strong", and in line with management expectations, in an update on Friday.

The AIM-traded firm, which was holding its annual general meeting, said business origination in the five months ended 29 February was 30% ahead of the comparative period last year at £127m.

Chief executive Scott Maybury said the quality of originations had been maintained, with over 79% of originations being in its prime credit grades, up from 76% a year ago.

He said the lending portfolio had grown by 55% to over £395m as at the end of February, which was supported by retail deposits of £346m, rising from £202m year-on-year.

"A key initiative for the 2020 financial year, which forms part of our strategy to further improve the credit risk profile of our business, was the launch of our automated prime proposition for consumer motor finance," Maybury told shareholders.

"After a trial with a small number of broker relationships in late 2019 the product and enhanced functionality were launched on 27 January.

"In our first full month of the new product's operation we can report that year-on-year, the comparative volumes for February show an increase in consumer motor lending of 80%."

Maybury said that had raised the prime credit quality statistics of the division in the month to 93%.

"This prime business attracts a lower net interest margin than our near prime originations but is expected to deliver both lower loan loss impairment charge and administrative expense.

"This is an exciting start for this product and proves our model to build portfolio scale and strong operational gearing in the medium-term."

PCF's other business lines were also continuing to grow, Maybury explained, saying that business finance volumes in the five months ended 29 February increased 5% year-on-year, with an increased proportion of the 'Azule' broadcast and media equipment written on its own balance sheet.

"The bridging property finance portfolio as at 29 February was £21m, having only commenced business this time last year.

"In the period we have continued to invest in our operating platform, infrastructure and human resources to prepare the group for our medium-term target of a £750m portfolio by September 2022.

"This investment includes a recent premises move which provides headcount capacity and our employees with an excellent working environment."

Scott Maybury noted that the global economy was facing increased economic concerns over the Covid-19 coronavirus, and there remained uncertainty over the UK's transition to an independent trading nation.

"It is therefore important we maintain our cautious risk appetite and remain proactive towards these challenges.

"We have confidence in the short-term as we build on our market share in diversified markets and can take comfort from the £75m of unearned operating income, in respect of future years, already present on our balance sheet.

"In the medium-term our return on equity target of 15% remains in place."

PCF Group said it would provide a further update on 3 June, when it would announce its half-year accounts for the six months ending 31 March.

At 1044 GMT, shares in PCF Group were down 2.83% at 29.15p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

PCF Group Market Data

Currency UK Pounds
Share Price 19.20p
Change Today 0.000p
% Change 0.00 %
52 Week High 38.00
52 Week Low 13.50
Volume 0
Shares Issued 250.24m
Market Cap £48.05m
RiskGrade 310

PCF Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
86.27% above the market average86.27% above the market average86.27% above the market average86.27% above the market average86.27% above the market average
52.94% below the sector average52.94% below the sector average52.94% below the sector average52.94% below the sector average52.94% below the sector average
Price Trend
64.89% below the market average64.89% below the market average64.89% below the market average64.89% below the market average64.89% below the market average
26.32% above the sector average26.32% above the sector average26.32% above the sector average26.32% above the sector average26.32% above the sector average
Income
31.51% above the market average31.51% above the market average31.51% above the market average31.51% above the market average31.51% above the market average
84.62% below the sector average84.62% below the sector average84.62% below the sector average84.62% below the sector average84.62% below the sector average
Growth
94.69% above the market average94.69% above the market average94.69% above the market average94.69% above the market average94.69% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

PCF Group Dividends

  Latest Previous
  Final Final
Ex-Div 19-Mar-20 21-Mar-19
Paid 09-Apr-20 12-Apr-19
Amount 0.40p 0.30p

Trades for --2020

Time Volume / Share Price
0 @ 0.000p

PCF Group Key Personnel

Finance Director David Bull
Chair Timothy Franklin

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