PCF Group PLC (AIM:PCF) said it has taken an important first step towards recovery with the publishing of its restated results for the year to end September 2020.
The specialist bank suspended its shares in May while it carried out a review of its financial controls and reporting processes. The review uncovered substantial errors, a potential breach of its large exposure limits with the banking regulator and an overstated capital ratio.
New numbers for 2020 now show a pre-tax loss of £4.8mln after credit impairment charges of £14.4mln (£3.3mln), which includes losses related to Coronavirus (COVID-19), write-offs and an adjustment for the errors identified in the review of £6mln.
Ernst & Young has stepped down as the bank's auditor with MacIntyre Hudson taking over.
Tim Franklin, chairman, said: "The past nine months have been difficult for the group, its stakeholders and shareholders. I would like to take this opportunity to once again apologise on behalf of the board and thank stakeholders for their patience.
"The publication of the Annual Report and Accounts for the financial year ended 30 September 2020 is an important first step for the group as it looks to move forward on stronger foundations in 2022 and continue to focus on our remediation activities and preparing for growth whilst seeking to obtain the removal of the suspension of trading in group shares"
"The board are confident that the steps that have been taken under the remediation plan so far will place the group in a stronger position for the future."
Shares in PCF remain suspended though the statement said it hopes to review this situation after its interim results for the six months to end March 2021 are published.
Later, PCF revealed that Tim Franklin would stand down as chair by no later than 31 January 2022 or earlier if a successor is found.
Marian Martin is also stepping down from her non-executive directorship role but will work out the terms of her contract as a consultant.
Garry Stran, interim chief executive, said: "Tim and Marian have been valued members of the board.
"Tim, as Chair, has overseen considerable change in the business since his appointment. During the difficult times of the last few months, he has provided calm and considered leadership against a backdrop of a global pandemic and the discovery of a number of internal governance issues.
"Likewise Marian has made a significant contribution to the board particularly given her deep expertise in risk-related matters which has been invaluable over the last few months."
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