PCF Group: Half Year Results Video

5th June 2019 | PCF Group plc


In the video below,  Scott Maybury, CEO of PCF Group updates investors on the Company’s half year results.

PCF Group Results Video


Announcement in full:

Continued strong profitability and capital in place for the next phase of growth

PCF Group plc, the AIM-listed specialist bank, today announces its results for the six months ended 31 March 2019. The Board is pleased to report that trading is strong, results are in line with market expectations and the Group’s strategic diversification of asset classes and routes to market is on track.

H1 2019 Financial Highlights:

  • Operating income up 51% to £10.1 million (2018: £6.7 million)
  • Statutory profit before tax up 57% to £3.3 million (2018: £2.1 million); strong portfolio growth delivered operational gearing and increased profitability
  • Earnings per share up 50% at 1.2p (2018: 0.8p)
  • Weighted after-tax return on equity up to 11.4% (2018: 8.7%), illustrating operational gearing and an efficient deployment of capital
  • Impairment losses of £1.2m (2018: £0.6 million), including the adoption of IFRS 9
  • Adoption of IFRS 9 as at 1 October 2018 resulted in a 13.8% increase to balance sheet impairment allowances. During the period a 0.1% increase in impairment charges in the income statement relates to the adoption of IFRS 9

H1 2019 Operational Highlights:

  • On 11 March 2019 the Bank raised £10.75 million of new equity to support its next phase of growth
  • Additionally, we are finalising a £15 million Tier 2 capital facility, to optimise the composition and cost of the Bank’s capital base and to support organic growth, eliminating the need for further capital in the medium-term. We expect this to be in place in June
  • Portfolio growth of 54% to £276 million (2018: £179 million)
  • Acquisition in the period of Azule Limited, the broadcast and media finance provider, which is performing to management expectation
  • Bridging property finance commenced operations in January 2019
  • Total new business origination up 75% to £121 million (2018: £69 million) comprising
    • New business origination for ‘own portfolio’ increased by 39% to £96 million (2018: £69 million); and
    • £25 million of new business origination (2018: NIL) generating broker commission income
  • Total customer base is now over 19,000 (2018: 15,000)
  • Awarded 2018 Top New Challenger Bank at the Leasing World industry awards
  • Nominated for both 2019 Best Notice and Best Fixed Account Provider by savings specialist, Money Facts

Scott Maybury, CEO, commented:

“This has been another highly successful period for the Group. We set ourselves ambitious targets and are on track to deliver these ahead of schedule. Profit before tax is up 57% to £3.3 million, with a similar increase in earnings per share. An acquisition and a new property lending initiative were announced in the period and organic growth in our established markets remains strong.

“Prudent capital management led us to increase the capital base and diversify the capital structure. This mitigates the potential risk of market volatility that may arise in these uncertain times and provides a strong base to support ongoing growth.

“We remain on track to meet market expectations and with the enhanced capital structure in place, we are well set to implement our 2019 objectives and medium-term plans. We look forward to reporting continued success as the year progresses.”