PCF Group: Trading Update

8th March 2019 | PCF Group plc

PCF, the AIM-listed specialist bank, will hold its Annual General Meeting (“AGM”) at 10.00am today at 1 Cornhill, London, EC3V 3ND.

At the AGM, Chief Executive, Scott Maybury will make the following statement to shareholders:

“Our Chairman provided a trading update in the recent Circular to shareholders regarding the Placing and Open Offer. Further to that statement, I am pleased to report that trading in the first five months of the current financial year has been strong and in line with management’s expectations.

“I am pleased to report that new business origination in the five-month period to 28 February 2019 was 78% ahead of the comparative period last year at £98m (2018: £55m). We are also pleased to report that the quality of originations has been maintained with over 76% of originations being in our prime credit grades (2018: 70%). The lending portfolio has grown to over £255m (2018: £172m) and this is supported by retail deposits of £202m (2018: £72m). 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.

“Following continued strong organic growth, in addition to the previously announced strategic diversifications, our previous lending portfolio target of £350m will be delivered ahead of schedule. Completing the proposed Placing and Open Offer will provide capital headroom to support the next stage of growth as the Group moves towards its medium-term targets of a portfolio of receivables of £750 million and a return on equity of 15% by September 2022. We are pleased with the performance and on-going integration of our acquisition, Azule Limited. The nascent property bridging finance division completed its first deal in January and has a strong pipeline of additional business.

“We will continue to invest for the future through additional resources and technology enhancements to build and maintain an infrastructure that supports our ambitions and meets the needs of our customers.

“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; and we look forward to providing a further update on 5 June 2019 when we will announce our half-year accounts for the six-month period ending 31 March 2019.”