PCF Group PLC Trading Statement - Ahead of Market Expectations (8857R)
September 27 2017 - 1:00AM
UK Regulatory
TIDMPCF
RNS Number : 8857R
PCF Group PLC
27 September 2017
27 September 2017
PCF Group plc
("PCF", the "Bank" or the "Group")
Trading Statement
Successful launch of retail deposit operations and results ahead
of market expectations
PCF Group plc, the AIM-listed specialist bank, issues a trading
update for the year ended 30 September 2017 ahead of reporting the
Bank's Final Results on 5 December 2017.
The Board is pleased to report strong trading during the eleven
months of the current financial year and therefore expects full
year results to be ahead of market expectations.
Trading and operational highlights within the period
include:
-- PCF Bank commenced retail deposit taking operations on 27
July and its success has exceeded expectations. To date,
approximately GBP51m of retail deposits have been received;
-- The new banking infrastructure is functioning well and
customer feedback has been extremely encouraging;
-- New business originations across the Bank are 19.3% ahead of
the same period last year at GBP74.1m (11 months ending 31 August
2016: GBP62.1m), largely driven by SME lending;
-- Portfolio quality remains a focus and the loan loss
impairment charge in the year to date remains at a record low of
0.5% (31 August 2016: 1.0%);
-- The portfolio of finance receivables has grown 17.5% in the
period to GBP141.6m (31 August 2016: GBP120.5m);
-- Adding the diversity of retail deposits to the Bank's funding
model has allowed the rationalisation of senior debt and interest
rate swap facilities. This has delivered interest expense and
facility cost savings in the period;
-- The Bank does not offer the Personal Contract Purchase
('PCP') product and therefore is not exposed to the inherent
residual risk in that type of contract and is not vulnerable to the
recent criticisms of mis-selling and poor underwriting practices
for PCP's. PCF's consumer motor division predominantly finances
used vehicles on fully amortising hire purchase contracts.
Scott Maybury, CEO, commented: "I am pleased to announce a
strong pre-close trading update. 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."
"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."
"This has been a year of great achievement, marked by our
arrival as a new entrant bank and we look forward to reporting our
full year results in December."
- end -
For further information, please contact:
PCF Group Tel: +44 (0)
Scott Maybury, Chief Executive 20 7222 2426
Officer
Robert Murray, Managing Director
David Bull, Finance Director
Tavistock Communications Tel: +44 (0)
Jos Simson / Niall Walsh 20 7920 3150
Panmure Gordon (UK) Limited Tel: +44 (0)
Atholl Tweedie / Adam James 20 7886 2500
- Corporate Finance
Charles Leigh-Pemberton - Corporate
Broking
Stockdale Securities Tel: +44 (0)
Robert Finlay / Richard Johnson 20 7601 6100
- Corporate Finance
Henry Willcocks - Corporate
Broking
About PCF Group plc (www.pcf.bank)
Established in 1994, PCF Group plc is the AIM-quoted parent of
the specialist bank, PCF Bank Limited. With the advent of the
banking operation the Group now has the capability to increase its
lending portfolio significantly, with target portfolio sizes of
GBP350m in 2020 and GBP750m in 2022. The Group will retain its
focus on portfolio quality, and has the capability to lend
increasingly to prime segments of the finance market.
PCF Bank will offer retail savings products for individuals and
will then deploy those funds through its two lending divisions:
-- Consumer Finance which provides finance for motor vehicles to consumers; and
-- Business Finance which provides finance for vehicles, plant and equipment to SMEs.
The Group has a track record of strong financial performance and
an efficient and scalable business model, with significant room to
grow. Utilising its technologically advanced platform, the Bank
will provide both depositors and borrowers with a high level of
service and a straightforward, simple range of products tailored to
suit their needs.
For media enquiries please contact media@pcf.bank
This information is provided by RNS
The company news service from the London Stock Exchange
END
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