Proactiveinvestors United Kingdom PCF Group Plc https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom PCF Group Plc RSS feed en Mon, 22 Jul 2019 16:52:25 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Director Dealing ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190722160512_14158555/ Mon, 22 Jul 2019 16:05:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190722160512_14158555/ <![CDATA[RNS press release - Change of Adviser ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190719070003_14155500/ Fri, 19 Jul 2019 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190719070003_14155500/ <![CDATA[Media files - PCF Group firing on all cylinders after 'highly successful' first half ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13738/pcf-group-firing-on-all-cylinders-after--highly-successful--first-half-13738.html Fri, 14 Jun 2019 08:27:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13738/pcf-group-firing-on-all-cylinders-after--highly-successful--first-half-13738.html <![CDATA[News - Lender PCF keeps up pace of new business and profit growth ]]> https://www.proactiveinvestors.co.uk/companies/news/221531/lender-pcf-keeps-up-pace-of-new-business-and-profit-growth-221531.html PCF Group Plc (LON:PCF), the AIM-listed challenger bank, grew income and earnings per share by more than 50% in the first half of its financial year and said it was “on track” to meet market expectations.

The six months to 31 March saw £121mln of new business origination, with the pace of growth remaining at 75% as in the previous year, with £25mln of new broker commission from the October acquisition of media and broadcast lending specialist Azule. Azule also contributed £8mln to the group’s own portfolio and this mix is expected to increase in time as the business becomes further integrated.

READ: PCF Group raises £10mln from share placing to support next phase of growth

The lending portfolio, where the focus on business finance for SMEs and consumer motor finance has been broadened by the addition of Azule and a new property bridging finance division in January, swelled by 54% to £276mln, along with net unearned finance income of £53mln that will be attributed to accounting periods over the next four years. Management aims to grow the total portfolio to £350mln by September 2020.

Operating income generated from the portfolio was up 51% to £10.1mln but PCF's net interest margin slipped to 8.0% from 8.4% a year ago as the group moves to a lower yielding but better-quality portfolio.

Profit before tax jumped 57% to £3.3mln and earnings per share was up by 50% to 1.2p.

Chief executive Scott Maybury said the bank had set ambitious targets and was “on track to deliver these ahead of schedule”, with the acquisition and new property lending initiative accompanied by “strong” organic growth in established markets.

Strengthening capital base

“Prudent capital management led us to increase the capital base and diversify the capital structure," he added, in reference to the £10.75mln of new equity issued in March and plan for a £15mln Tier 2 capital facility this month. "This mitigates the potential risk of market volatility that may arise in these uncertain times and provides a strong base to support ongoing growth.”

Noting that core equity tier-1 capital ratio ended the period at 19.7% following the March fundraising, broker Shore Capital said: "This strengthening capital base underpins our expectation that PCF can continue to deliver amongst the highest EPS and TNAV growth rates of UK lenders, with the previous £350mln loan book target for FY 2020 likely to be achieved ahead of schedule."

Analysts said the results were in line with expectations and made no changes to forecasts in light of the "cautiously confident" outlook.

PCF shares were up 6% in early trade on Wednesday to 35p.

-- Adds broker comment --

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Wed, 05 Jun 2019 08:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/221531/lender-pcf-keeps-up-pace-of-new-business-and-profit-growth-221531.html
<![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190605070006_14098718/ Wed, 05 Jun 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190605070006_14098718/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190503123217_14062815/ Fri, 03 May 2019 12:32:17 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190503123217_14062815/ <![CDATA[RNS press release - Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190405144433_14031241/ Fri, 05 Apr 2019 14:44:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190405144433_14031241/ <![CDATA[RNS press release - Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190327070003_14016870/ Wed, 27 Mar 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190327070003_14016870/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190312160158_13999561/ Tue, 12 Mar 2019 16:01:58 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190312160158_13999561/ <![CDATA[RNS press release - Result of Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190308112444_13995777/ Fri, 08 Mar 2019 11:24:44 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190308112444_13995777/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190308111941_13995766/ Fri, 08 Mar 2019 11:19:41 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190308111941_13995766/ <![CDATA[News - PCF Group growth story continues ]]> https://www.proactiveinvestors.co.uk/companies/news/216064/pcf-group-growth-story-continues-216064.html PCF Group PLC (LON:PCF) saw its shares rise on Friday after the specialist lender said trading in the first five months of its current fiscal year has been strong.

Ahead of today’s annual general meeting, the company released a statement in which Scott Maybury revealed trading had been in line with management’s expectations.

READ: PCF Group raises £10mln from share placing to support next phase of growth

New business origination in the five-month period to 28 February 2019 was 78% ahead of the comparative period last year at £98mln (2018: £55m).

Maybury said the quality of originations has been maintained with more than 76% of originations being in PCF’s prime credit grades, up from 70% at the same point a year earlier.

The lending portfolio has grown to more than £255mln from £172mln at the end of February 2018, supported by retail deposits of £202mln, up from £72mln.

“The lending portfolio is reported net of approximately £48m of deferred income which provides a degree of visibility on future earnings, as typically 50% of this income is expected to accrue in the upcoming 12 months,” Maybury’s statement said.

"The UK economy faces political and economic uncertainties which have the potential to slow our progress; however, by maintaining a sound credit model and a robust operational platform we can mitigate these risks. We will remain alert to these challenges as we plan our growth strategy for 2020 and beyond," Maybury said.

In afternoon trading, shares in PCF Group were 3.8% higher at 33.20p.

 -- Adds share price --

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Fri, 08 Mar 2019 07:16:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216064/pcf-group-growth-story-continues-216064.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190308070004_13994832/ Fri, 08 Mar 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190308070004_13994832/ <![CDATA[RNS press release - Results of Placing and Directors' Shareholdings ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190220124627_13975987/ Wed, 20 Feb 2019 12:46:27 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190220124627_13975987/ <![CDATA[News - PCF Group raises £10mln from share placing to support next phase of growth ]]> https://www.proactiveinvestors.co.uk/companies/news/214955/pcf-group-raises-10mln-from-share-placing-to-support-next-phase-of-growth-214955.html PCF Group PLC (LON:PCF) has raised total proceeds of £10mln from a share placing and plans to get another £0.75mln via an open offer to accelerate growth and fund the next stage of its strategy.

The AIM-listed banking group said brokers Panmure Gordon and Stockdale conditionally placed a total of 33,333,333 shares at an issue price of 30p each to raise net proceeds of approximately £9.5mln for the company after fees and expenses.

WATCH: PCF Group sets new records with increasing profitability and 'delivering on key objectives'

The placing shares represent approximately 15.6% of PCF’s existing ordinary share capital, and the issue price was at a discount of approximately 16.7% to Tuesday’s closing share price.

PCF said its majority shareholder, investment firm Somers Limited, and certain PCF directors participated in the placing.

In addition to the placing, PCF said it would provide certain qualifying shareholders with the opportunity to subscribe for open offer shares to raise the additional £0.75mln.

Scott Maybury, PCF's chief executive, said that the proceeds of the placing would be used to help the company achieve its target of a £750mln lending portfolio, which would require the firm to “acquire and invest in additional complementary business lines”.

“Since gaining our banking licence we have been able to grow the volume of our retail savings and our lending book considerably faster than we had planned for … The £10mln we plan to raise today will help provide capital headroom to accelerate growth and support the next stage of the Group's strategic plan.”

The firm, which became a fully operational bank in July 2017, reported record profits in its last full year while hiking its final dividend by 58%.

In early afternoon trading, PCF shares were trading above the placing price at 32.5p.

 -- Adds placing result, updates share price --

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Wed, 20 Feb 2019 10:38:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214955/pcf-group-raises-10mln-from-share-placing-to-support-next-phase-of-growth-214955.html
<![CDATA[RNS press release - Proposed Placing and Open Offer ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190220093001_13975529/ Wed, 20 Feb 2019 09:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190220093001_13975529/ <![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190213092950_13967945/ Wed, 13 Feb 2019 09:29:50 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20190213092950_13967945/ <![CDATA[RNS press release - Director Dealing ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181211144602_13899678/ Tue, 11 Dec 2018 14:46:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181211144602_13899678/ <![CDATA[Media files - PCF Group sets new records with increasing profitability and 'delivering on key objectives' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11494/pcf-group-sets-new-records-with-increasing-profitability-and-delivering-on-key-objectives--11494.html Thu, 06 Dec 2018 15:35:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11494/pcf-group-sets-new-records-with-increasing-profitability-and-delivering-on-key-objectives--11494.html <![CDATA[News - PCF Group hikes dividend after delivering record profits in first full year as a bank ]]> https://www.proactiveinvestors.co.uk/companies/news/210553/pcf-group-hikes-dividend-after-delivering-record-profits-in-first-full-year-as-a-bank-210553.html PCF Group Plc (LON:PCF) hiked its final dividend by 58% after delivering record profits and meeting its key strategic objectives in its first full year as a bank.

The specialist lender, which became a fully operational bank in July 2017, said pre-tax profit jumped 44% to £5.2mln in the year to 30 September 2018 from £3.6mln a year ago after receiving a banking licence led to cheaper cost of funds.

WATCH: PCF Group sets new records with increasing profitability and 'delivering on key objectives'

New business originations gained 75% to £148.4mln from £85.6mln last year, in line with PCF’s target. Customers with prime credit grades accounted for 70% of new business originations.

Retail deposits more than trebled to £191mln from £53mln last year as the number of customers rose to 4,500 from 1,060.

The total lending portfolio increased by 50% to £219mln from £146mln with strong growth in the business finance and consumer finance divisions.

PCF, which specialises in motor finance and loans for business assets, said it is on track to reach its 2020 portfolio target of £350mln a year earlier than planned following a solid full-yearperformance and boosted by the acquisition of media and broadcast finance company Azule Limited at the end of October.

READ: PCF to buy UK specialist finance provider Azule for up to £5.6mln

The bank expects Azule to immediately enhance its earnings and the integration of the business will be a priority for 2019.

PCF ended 2019 with net assets of £42.6mln, up 10.1% on £38.7mln last year. The group’s common equity tier 1 capital ratio was 19.3%, comfortably ahead of minimum requirements.

The net interest margin – the difference between interest received on loans and amount paid on savings deposits – edged down to 8.2% from 8.2% amid tough competition in the prime lending sector.

The after-tax return on equity increased to 10.3% from 8.7% last year, putting the group on track to reach its medium-term target of 12.5%.

The final dividend was raised to 0.30p from 0.19p as it issued a positive outlook.

"We look forward to the year ahead with confidence in the bank's ability to deliver profitable and sustainable growth for our shareholders,” chairman Tim Franklin said.  

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Wed, 05 Dec 2018 07:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210553/pcf-group-hikes-dividend-after-delivering-record-profits-in-first-full-year-as-a-bank-210553.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181205070003_13891635/ Wed, 05 Dec 2018 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181205070003_13891635/ <![CDATA[News - PCF continues to grow since launching bank as it sets itself apart from competition ]]> https://www.proactiveinvestors.co.uk/companies/news/208400/pcf-continues-to-grow-since-launching-bank-as-it-sets-itself-apart-from-competition-208400.html The UK’s biggest lenders have had to pull up their socks recently as a growing number of small and mid-sized banks enter the scene with more competitive savings and lending rates.

But fierce competition and a sluggish economy have held back these so-called challenger banks from knocking the mainstream lenders, including Lloyds, Barclays, HSBC and RBS, off their perch.

PCF Bank, which became a fully operational bank in July 2017, admits the high street competition is tough and for this reason, it focuses on niche markets.

“I’m afraid to say that in this market there’s not a lot of product differentiation other than the rate to the marketplace and the service that you offer,” chief executive Scott Maybury said.

PCF specialises in motor finance and loans for business assets. It lends to consumers and small and medium-sized companies wanting to buy such items as cars, commercial vehicles, engineering equipment, motorhomes and horse boxes.

PCF expands into media

The bank is set to extend its reach to the broadcast and media industry after agreeing to buy Azule Limited for up to £5.6mln at the end of October.

The company said the deal would allow it to tap into a market that brings in the £50mln worth of new business each year. 

In the year to 30 September 2018, PCF brought in record new business originations of £148mln, up 75% from £85mln a year ago.

Pre-tax profit jumped 44% to a record of £5.2mln from £3.6mln a year ago.

Retail deposits more than trebled to £191mln from £53mln last year as the number of customers rose to 4,500 from 1,060.

The lending portfolio rose 50% to about £219mln from £146mln last year, putting it on track to meet its target of £350mln by September 2020. 

The next level PCF aims to reach is a lending portfolio worth £750mln by September 2022.

READ: PCF Group hikes dividend after delivering record profits in first full year as a bank

“To get there you’ll see us diversify into a couple of different asset classes or a couple of new markets,” Maybury said.

“How we do that and which markets they will be in, we can’t tell you that yet, but the likelihood is they will be through a further acquisition in complementary markets or they will be through acquiring a specialist team of people from within one of our competitors and setting up an operation organically in-house.”

PCF attracts 'high quality' customers

PCF was founded in 1994 as a finance company, which borrowed money from banks and used it to provide funding to companies and consumers for purchases of vehicles and business assets. By being authorised as a bank, the company now has access to retail deposits, which comes at a lower cost.

PCF plans to use the benefits of cheaper cost of funds from retail deposits towards its sales and marketing efforts to lure in customers.

Maybury said PCF targets “high quality” customers including consumers who have a spotless credit history and many years of work behind them as well as UK-based businesses that are profitable and have a strong balance sheet. Customers with prime credit grades accounted for 70% of new business originations in fiscal year 2018.

“That’s a strategic decision to fit our risk appetite,” he said, adding that he feels it is the right approach given the uncertainties facing the UK economy with Brexit fast approaching.

PCF well placed to withstand possible financial shocks

The worry for many UK-focused lenders is the possibility of an economic downturn after Britain leaves the European Union in March 2019. PCF believes it is well placed to withstand any future financial shocks due to its capital strength, low-risk customer base and ability to react quickly to any pressures.

Maybury said PCF stayed profitable through the financial crisis and has become increasingly profitable over the past five years.

 “On top of that, you layer a banking licence with a cheaper cost of funds and the ability to always borrow from the retail market, whereas our experience in the global financial crisis was that the banks shut themselves to lending so we weren’t able to borrow. That won’t happen again so it gives us a resilience going forward.”

PCF Bank, which savings products are available online or by post, offer an annual savings rate of 2.40% on four-year term deposit accounts and an annual rate of 1.7% on its 100-day notice account.

Despite the challenge of keeping customers once their fixed-rate savings account matures, Maybury said PCF has a high retention rate that he thinks is due to the good technology and customer service the bank offers.

“I think we’re a different generation of bank that is a lot quicker on our feet, a lot quicker at reacting to what customers want and are a lot more attractive to the savings market,” he said. 

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Fri, 02 Nov 2018 07:29:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208400/pcf-continues-to-grow-since-launching-bank-as-it-sets-itself-apart-from-competition-208400.html
<![CDATA[RNS press release - Completion of Acquisition and Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181101070002_13850385/ Thu, 01 Nov 2018 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181101070002_13850385/ <![CDATA[News - PCF reports sharp rise in lending portfolio and new business in first full year as a bank ]]> https://www.proactiveinvestors.co.uk/companies/news/207531/pcf-reports-sharp-rise-in-lending-portfolio-and-new-business-in-first-full-year-as-a-bank-207531.html Specialist bank PCF Group Plc (LON:PCF) posted a 50% increase in its lending portfolio for the year as it achieved record new business, mostly with prime credit grade customers.

In a trading update for the year ended 30 September 2018, the AIM-listed company said its lending portfolio grew to about £219mln from £146mln last year, putting it on track to meet its target of £350mln by September 2020.

New business originations jumped 75% to £148mln for the year, up from £85mln in 2017, with 70% of these with customers who have prime credit grades.

PCF said the growth in new business originations reflected the “benefits of a banking model and our reputation for excellent customer service”. Reduced cost of funds allowed PCF to increase lending the prime sector, which was a strategic decision aligned with the group’s cautious outlook for the UK economy.

READ: PCF Group strategy on track as new banking platform boosts profits

The group said while the market for prime lending in consumer motor finance and business asset finance is competitive, this tactic will improve future profitability. Lending to prime borrowers reduces the risk of customers failing to repay their loan on time. It also improves operational gearing by increasing the scale of the lending book in proportion to fixed costs.

PCF, which launched a new internet banking platform earlier this year, said it would continue to invest in improving its technology to attract high-quality customers.

The retail deposit base has ballooned to £190mln from £53mln since receiving the Savings Champion Award for 2018 Best New Provider.

Earlier this month, PCF announced that it would buy Azule Limited, which specialises in funding and leasing services to the broadcast and media industry. PCF said the acquisition would diversify its assets classes and allow it to tap into a market that has new business origination potential of more than £50mln per year.

READ: PCF to buy UK specialist finance provider Azule for up to £5.6mln

"A diversified banking model is proving a great strength and our first full year as a bank has been extremely encouraging,” said chief executive Scott Maybury.

“We have made excellent progress against ambitious targets and our focus on organic growth through existing lending markets has now been supplemented with an earnings enhancing acquisition.”

Shares rose 5.6% to 37.50p in morning trading. 

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Mon, 22 Oct 2018 07:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207531/pcf-reports-sharp-rise-in-lending-portfolio-and-new-business-in-first-full-year-as-a-bank-207531.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181022070006_13836455/ Mon, 22 Oct 2018 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181022070006_13836455/ <![CDATA[Media files - PCF Group acquires UK specialist finance provider Azule Limited ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10769/pcf-group-acquires-uk-specialist-finance-provider-azule-limited-10769.html Mon, 08 Oct 2018 15:25:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10769/pcf-group-acquires-uk-specialist-finance-provider-azule-limited-10769.html <![CDATA[News - PCF to buy UK specialist finance provider Azule for up to £5.6mln ]]> https://www.proactiveinvestors.co.uk/companies/news/206562/pcf-to-buy-uk-specialist-finance-provider-azule-for-up-to-56mln-206562.html PCF Group Plc (LON:PCF) said on Monday that its wholly-owned PCF Bank Limited has agreed to buy UK specialist finance provider Azule Limited for up to £5.6mln.

The company said the acquisition of Azule, which provides funding and leasing services for the broadcast and media industry, offers revenue synergies with its existing asset finance operations and will immediately enhance earnings.

PCF said Azule has strong vendor relationships with top broadcast and media equipment manufacturers, a team of 17 sales and finance professionals, the ability to originate more than £50mln of asset finance per year, a history of robust profits and £16mln portfolio of receivables with an exceptionally low impairment charge.

Azule will be purchased for an initial consideration of £4.1mln, including £3.3mln in cash and the rest in PCF shares. An additional earn-out of up to £1.5mln over two years will be paid depending on performance criteria.

READ: PCF Group expects profit growth to accelerate thanks to operational gearing

"The acquisition of Azule is a clear demonstration of the mutual advantages offered by the acquisition of an established asset finance business by PCF,” said PCF chief executive Scott Maybury.

“As part of PCF Bank, Azule will be able to access a lower cost of funds enhancing profitability, enabling faster growth and accelerating PCF's achievement of portfolio growth targets.”

The acquisition will be funded using existing cash and capital resources.  The deal is subject to approval by the Financial Conduct Authority, which is expected shortly.

In the year ended 30 June 2018, Azule generated £54.3mln of asset finance, reported revenues of £3.1mln, a profit before tax of £0.8mln and gross assets were £17.9mln. 

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Mon, 08 Oct 2018 08:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206562/pcf-to-buy-uk-specialist-finance-provider-azule-for-up-to-56mln-206562.html
<![CDATA[RNS press release - PCF to Acquire Azule Limited ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181008070005_13819226/ Mon, 08 Oct 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20181008070005_13819226/ <![CDATA[RNS press release - Director Dealing ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180726091424_13732392/ Thu, 26 Jul 2018 09:14:24 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180726091424_13732392/ <![CDATA[RNS press release - Director Dealing ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180725162442_13731441/ Wed, 25 Jul 2018 16:24:42 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180725162442_13731441/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180702090310_13701160/ Mon, 02 Jul 2018 09:03:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180702090310_13701160/ <![CDATA[Media files - PCF's Maybury: New banking platform is "absolutely transformational" ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9381/pcf-s-maybury-new-banking-platform-is-absolutely-transformational--9381.html Fri, 25 May 2018 14:29:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9381/pcf-s-maybury-new-banking-platform-is-absolutely-transformational--9381.html <![CDATA[News - PCF Group expects profit growth to accelerate thanks to operational gearing ]]> https://www.proactiveinvestors.co.uk/companies/news/197524/pcf-group-expects-profit-growth-to-accelerate-thanks-to-operational-gearing-197524.html Specialist bank PCF Group Plc (LON:PCF) said its new blanking platform has delivered increased profitability.

The group said in its results statement for the six months to the end of March that trading has been in line with market expectations and the strategy for the business is on track.

READ: PCF Group's retail bank hits £100mln retail deposits milestone sooner than expected​

Reported profit before tax rose 20% to £2.1mln from £1.7mln, which the group hailed as a strong performance as it incorporates, for the first time in a financial period, the full costs of operating as a bank.

The investment in setting up PCF Bank has led to a reduction in the company's return on equity to 8.7% from 10.5% in the corresponding period a year earlier but management is confident this will be a short-term impact, while the benefits of the banking model have already started to accrue with lower funding costs, the ability to reach and retain a wider range of customers, greater flexibility to diversify the business, access to the Sterling Monetary Framework and a reduction in risk from relying solely on wholesale funding.

The reporting period saw a return to growth for the Consumer Finance Division with originations up 81% to £28mln (2017: £16mln).

Earnings per share for the group was maintained at 0.8p but management held out the prospect of delivering increasing profitability as the lending portfolio grows against a largely fixed cost base.

“This has been a rewarding period. We set ourselves ambitious targets for our first year as a bank and have made excellent progress towards achieving those objectives,” declared Scott Maybury, the chief executive of PCF.

“We came into this financial year with a significantly higher cost base but have still delivered good growth in profitability. We expect this to accelerate through operational gearing, as we scale our portfolio and continue to put the new capital and infrastructure to work," he added.

The shares have almost doubled over the last year and saw a bit of profit-taking this morning, easing a penny to 41.5p.

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Wed, 23 May 2018 09:08:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/197524/pcf-group-expects-profit-growth-to-accelerate-thanks-to-operational-gearing-197524.html
<![CDATA[RNS press release - Half Year Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180523070006_13651263/ Wed, 23 May 2018 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180523070006_13651263/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180430145350_13624194/ Mon, 30 Apr 2018 14:53:50 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180430145350_13624194/ <![CDATA[Media files - PCF Bank sees retail deposits exceed £100mln ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9068/pcf-bank-sees-retail-deposits-exceed-100mln-9068.html Mon, 16 Apr 2018 12:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9068/pcf-bank-sees-retail-deposits-exceed-100mln-9068.html <![CDATA[News - PCF Group's retail bank hits £100mln retail deposits milestone sooner than expected ]]> https://www.proactiveinvestors.co.uk/companies/news/195030/pcf-group-s-retail-bank-hits-100mln-retail-deposits-milestone-sooner-than-expected-195030.html PCF Group Plc (LON:PCF), the specialist bank, said the total value of deposits it has accepted from retail customers has surpassed the £100mln mark.

The milestone has been reached sooner than expected, with the retail bank having only started operations in July of last year.

WATCH: PCF Bank sees retail deposits exceed £100mln

PFC, which set up the bank to access a cheaper source of funds than the wholesale debt market, has seen around 2,500 new retail customers sign up since the bank commenced operations.

$PCF #PCFBANK Deposits over £100m. Only launched July 2017 so shows power / flexibility of comparison websites ($ARBB Arbuthnot Banking just announced its intent to offer online). At PCF average dep £45k

— Hardman & Co (@HardmanandCo) April 16, 2018

The group's strategy is to grow the lending portfolio to £350mln by September 2020 and £750mln by 2022. PCF announced last month that the lending portfolio had grown to £172mln already.

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Mon, 16 Apr 2018 09:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195030/pcf-group-s-retail-bank-hits-100mln-retail-deposits-milestone-sooner-than-expected-195030.html
<![CDATA[RNS press release - PCF Bank Reaches £100m in Retail Deposits ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180416072503_13604803/ Mon, 16 Apr 2018 07:25:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180416072503_13604803/ <![CDATA[RNS press release - Scrip Dividend Elections Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180329085633_13586515/ Thu, 29 Mar 2018 08:56:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180329085633_13586515/ <![CDATA[News - PCF Group strategy on track as new banking platform boosts profits ]]> https://www.proactiveinvestors.co.uk/companies/news/192761/pcf-group-strategy-on-track-as-new-banking-platform-boosts-profits-192761.html PCF Group Plc’s (LON:PCF) new internet banking platform has been “a real game changer” for the specialist bank, according to chief executive Scott Maybury.

Maybury said the platform provides the bank access to cheaper funds, which allows it to expand in existing markets and increase profitability.

The first-half results, published in May, showed that PCF has taken on more than 2,400 new customers and retail deposits have increased to £108mln since receiving the regulatory go-ahead to begin activities as a fully-operational bank in July 2017.

The lower cost of funding that the new banking platform has delivered for PCF has led to a 97% increase in business volumes and 40% growth in the portfolio.

Profits jump in 'rewarding period'

Despite the costs of becoming a bank and developing the platform, PCF achieved a 20% increase in pre-tax profits to £2.1mln in the six months to March and Maybury expects further growth in future.

“The top line numbers are very good, the cost base is fixed so as we scale the portfolio all that new income from the portfolio goes to the bottom line in a larger way to make us increasingly profitable,” Maybury said.  

 

The investment in setting up PCF Bank resulted in a reduction to return on equity to 8.7% from 10.5% a year earlier but the group is confident this will be a short-term impact.

PCF believes the benefits of the banking model have already started to accrue with lower funding costs, the ability to reach and retain a wider range of customers, greater flexibility to diversify the business, access to the Sterling Monetary Framework and lower risk from relying solely on wholesale funding.

The reporting period saw a return to growth for the Consumer Finance Division with originations up 81% to £28mln (2017: £16mln).

Earnings per share for the group was maintained at 0.8p but management held out the prospect of delivering increasing profitability as the lending portfolio grows against a largely fixed cost base.

“This has been a rewarding period. We set ourselves ambitious targets for our first year as a bank and have made excellent progress towards achieving those objectives,” Maybury said.

“We came into this financial year with a significantly higher cost base but have still delivered good growth in profitability. We expect this to accelerate through operational gearing, as we scale our portfolio and continue to put the new capital and infrastructure to work.”

Positive outlook 

PCF said the new business pipeline is strong and the group is pleased the quality of business it is writing.

While the company is cautious about the outlook for the UK economy, it believes it is well-placed to handle any challenges given its current impairment performance and wealth of experience in its chosen markets.

“By maintaining prudent and responsible lending, we are confident that we will continue to perform well in our existing markets,” chairman Tim Frankland said.

Frankland said PCF’s medium-term target for a £350mln portfolio by 2020 is well within its sights, driven by organic growth in existing products.

The longer-term goal is to grow the portfolio to £750mln through acquisitions, strategic partnerships or setting up new specialist teams. 

“This wide range of opportunities needs to be carefully researched and we will be most attracted to those which use technology as the enabler for growth and to those that provide synergies with our current infrastructure and customer base,” Frankland said.

“We remain on track to meet our own and market expectations and look forward to reporting continued success as the year progresses.”

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Tue, 06 Mar 2018 11:01:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/192761/pcf-group-strategy-on-track-as-new-banking-platform-boosts-profits-192761.html
<![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180302102756_13552721/ Fri, 02 Mar 2018 10:27:56 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180302102756_13552721/ <![CDATA[News - PCF Group reveals strong current trading, in line with management expectations ]]> https://www.proactiveinvestors.co.uk/companies/news/192497/pcf-group-reveals-strong-current-trading-in-line-with-management-expectations-192497.html PCF Group Plc (LON:PCF) has said trading in the first five months of the current financial year has been strong, in line with the AIM-listed specialist bank's management expectations.

In a trading statement to be delivered at the group's annual general meeting today, PCF's chief executive Scott Maybury said that “new business originations in the five-month period to 28 February 2018 were 93% ahead of the comparative period last year at £54.5mln (2017: £28.2mln).”

WATCH: PCF Group Results Ahead of Expectations

He added: “The lending portfolio has grown to approximately £172mln compared to £127mln at this time last year.”

Maybury said: "Following our success in achieving the Savings Champion Award for 2018 Best New Provider, we have seen retail deposits increase to £81mln at 28 February 2018.”

In terms of outlook, he said: “Our medium-term targets for the Group remain unchanged at 12.5% return on equity and a lending portfolio of £350mln by September 2020, while asset diversification remains a goal and will follow in due course.”

The chief executive added: "Our first full year as a bank has commenced well. We have made encouraging progress against ambitious targets and our focus on expanding our addressable lending market with a proven product range will underpin our continued operational success and deliver increasing profitability."

He concluded: "We look forward to providing a further update on 23 May 2018 when we will release our interim accounts for the six-month period ending 31 March 2018."

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Fri, 02 Mar 2018 07:45:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/192497/pcf-group-reveals-strong-current-trading-in-line-with-management-expectations-192497.html
<![CDATA[RNS press release - AGM Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180302070003_13552073/ Fri, 02 Mar 2018 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180302070003_13552073/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180131114647_13516402/ Wed, 31 Jan 2018 11:46:47 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20180131114647_13516402/ <![CDATA[Media files - PCF Group Results Ahead of Expectations ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/8495/pcf-group-results-ahead-of-expectations-8495.html Tue, 05 Dec 2017 16:32:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/8495/pcf-group-results-ahead-of-expectations-8495.html <![CDATA[News - PCF's results ahead of expectations on back of organic portfolio growth ]]> https://www.proactiveinvestors.co.uk/companies/news/188252/pcf-s-results-ahead-of-expectations-on-back-of-organic-portfolio-growth-188252.html Specialist bank PCF Group Plc (LON:PCF) kept up its record of springing pleasant surprises, releasing full-year results that were ahead of expectations.

The launch of its deposit-taking banking operations arm in July was expected to give a shot in the arm to the group and certainly seems to have done that, with underlying profit before tax in the year the end of September up 25% on a pro forma basis from £4.0mln the year before.

READ: PCF Group's results to be ahead of expectations

Statutory profit before tax was unchanged year-on-year, reflecting the £1.4mln of bank set-up costs.

The lending portfolio grew by 20% during the year to £146mln (2016: £122mln). New business lending increased by 24% to £84.6mln in the year (2016: £68.4mln), driven by PCF's Business Finance Division.

As at the end of September, the business finance portfolio was £73mln, versus £52mln a year earlier; the consumer motor portfolio edged up to £72mln from £70mln the year before, with the group saying it was not prepared to sacrifice margin to compete in a cut-throat market.

PCF noted the car loan market faces possible structural changes, what with diesel engines in the dog-house and the rise of electric and autonomous vehicles.

PCF has plans to restore growth to this division and expects successes in 2018 as it uses its cheaper cost of funds to compete on a level playing field in the prime lending market, though this will requires changes to the group's information technology platform; these changes are expected to go live in the first calendar quarter of 2018.

The launch of the banking arm in July has reduced the cost of funding has increased PCF's ability to access a greater part of the prime lending sector and is expected to provide the driver for accelerated portfolio growth. PCF is targeting organic growth of the portfolio to £350mln within three years.

READ: PCF Group raises expectations as it launches bank business

The group's earnings per share dipped to 1.5p from 1.7p the year before, but the underlying earnings per share rose 21% to 2.3p (2016: 1.9p).

The net asset value per share rose to 18.2p from 15.1p last year.

The group whacked up the final dividend to 0.19p from 0.10p the year before.

PCF said it was currently experiencing “a relatively benign environment for loan defaults”.

“These strong results are underpinned by excellent organic portfolio growth and a record low impairment rate,” said Tim Franklin, chairman of PCF. 

“The quality of our portfolio and the operational platform we have built provides the ideal foundation to deliver on a strategy of accelerated growth through expansion within our existing lending markets and asset diversification through acquisition.

"We look to the year ahead with confidence in PCF's ability to deliver profitable and sustainable growth," he added.

Shares in PCF opened 5.7% higher at 32.25p.

Note: The previous accounting period was an 18-month period due to a change in accounting reference date, hence the use of pro forma comparisons

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Tue, 05 Dec 2017 08:04:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/188252/pcf-s-results-ahead-of-expectations-on-back-of-organic-portfolio-growth-188252.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20171205070006_13453667/ Tue, 05 Dec 2017 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20171205070006_13453667/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20171026070005_13409403/ Thu, 26 Oct 2017 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20171026070005_13409403/ <![CDATA[News - PCF Group's results to be ahead of expectations ]]> https://www.proactiveinvestors.co.uk/companies/news/184647/pcf-group-s-results-to-be-ahead-of-expectations-184647.html Specialist bank PCF Group Plc (LON:PCF) said results for the current financial year should be ahead of market expectations.

With less than a month of the current financial year left to run, the group said trading this year had been strong, with the launch of PCF Bank in July going better than expected.

READ: PCF Group - Capital Network: Raising Retail Deposits will be game changer

PCF Bank commenced retail deposit taking operations on July 27 and its success has exceeded expectations. To date, roughly £51mln of retail deposits have been received.

The new banking infrastructure is functioning well and customer feedback has been extremely encouraging, PCF Group revealed.

New business originations across the bank in the first 11 months of the fiscal year were 19.3% ahead of the same period last year at £74.1mln (2016: £62.1mln), with the increase driven largely by lending to small and medium-sized enterprises.

The group reported that its portfolio of loans remains of high quality, with the loan loss impairment charge in the year-to-date running at a record low rate of 0.5%, versus 1.0% at the end of August 2016.

No skeletons in the closet

As a relatively new entrant to retail banking, the group has no skeletons in the closet when it comes to the sort of products that have been mis-sold by its sector peers, and it emphasised that it does not offer the sort of “personal contract purchase” products that have got customers, regulators and shareholders of banks so angry.

“The successful launch of PCF Bank's retail deposit products has coincided with a number of new business initiatives, utilising the cheaper cost of funds, to expand the bank's addressable lending market. Our success in delivering these projects is testament to the team at PCF and provides momentum as we enter the new financial year and continue our strategy of scaling the portfolio and generating profitable and sustainable growth," said Scott Maybury, chief executive officer of PCF.

"There is excellent potential for growth in our proven, existing markets in the short and medium term; and over the next three years, asset diversification will provide greater acceleration in portfolio growth," he added.

PCF will release its full-year results in December.

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Wed, 27 Sep 2017 07:54:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/184647/pcf-group-s-results-to-be-ahead-of-expectations-184647.html
<![CDATA[RNS press release - Trading Statement - Ahead of Market Expectations ]]> https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20170927070002_13376377/ Wed, 27 Sep 2017 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/809/LSE20170927070002_13376377/