PCF Group PLC (AIM:PCF) expects to publish its 2020 annual reports and accounts by early January and is nearing completion of an assessment of its financial control framework, reporting processes, governance structures and its suitability to be a listed company.
An independent review of the group's accounting records has been completed following an independent review of its financial controls that resulted in an additional £6mln impairment being added to its 2020 results.
The finalisation of the assessment will be shortly after publication of 2020 annual report and accounts, the company said, with the publication of interim results to 31 March 2021 expected to be as soon as possible after that.
PCF, the parent of PCF Bank, said it has initiated, with expert external assistance, “a programme of cultural change focussing on the identification and management of risk, active listening and speaking up”.
It added that core competencies within its customer-facing business “remain strong” and it continues to maintain relationships with customers and intermediaries and receive levels of deposits in line with its business and liquidity plan.
Loan originations are also continuing to be managed at a reduced year-on-year level, the lender said, while also managing its capital and liquidity position “in a conservative and prudent manner taking account of the position of the group and the wider macro-economic situation in the UK”.
In June PCF said that a review of financial controls found errors in reporting that potentially breached its large exposure limits with the banking regulator and also overstated its capital ratio, which the board said were likely to have been driven by an inadequate level of experience and a poor culture in the finance team.
A restructuring of the senior leadership team is being led by interim CEO Garry Stran, CFO Caroline Richardson after Scott Maybury stepped down as chief executive in May.