Pcf Share Discussion Threads

[hopespr1ngseternal] 28/9/2021 22:41

What interests me is whether the Board is working in concert with Somers? PCF is one of the investments they advertise on their website and represents 4% of their assets. Are they waiting until year end so that they can publish relatively good news in the form of 2021 results and 2022 guidance at the same time as 2020 finals which will by then be largely past history? I still cannot imagine that what has emerged so late in the day is that material. Remember the nervous young man from Tavistock told me that they felt obliged to issue Sept 10th RNS because the 750k figure was no longer accurate not because the revision was material. Be that as it may the policy of saying nothing until they have to and then saying as little as possible is extremely unfair to shareholders.

[seasidehippo] 28/9/2021 16:20

On 10 September 2021 the company provided an update including the following:
"As a result of the matters identified the net reduction is now anticipated to be greater than £750,000." and "work is ongoing to establish the actual extent of that further reduction."

WHY ON EARTH WOULD YOU PROVIDE AN UPDATE TO SHAREHOLDERS STATING THERE WAS AN ISSUE(SOMETHING TO MATERIALLY IMPACT PROFIT) IF YOU COULD NOT QUANTIFY THAT ISSUE? Indeed if you are unable to quantify the issue how do you know it is an issue in the first place? UNBELIEVABLE!!!!

[dandigirl] 28/9/2021 07:38

If you have a few minutes, do take a look at the SUS announcement this morning.

I do hope that we, too, are reaping the benefits of this vibrant market to off-set the costs of this debacle under Franklin’s chairmanship.

Anthony Coombs is a class act.

[georgelees] 27/9/2021 17:28

Last year they published the trading update on 1 October - really hope they manage that. The danger is they are now in hoc to the accountants. I used to work for PwC - I can imagine all those billable hours and PCF seem to be unable to escape the trap, which concerns me more than the original misstatement..

[georgelees] 27/9/2021 17:21

Last year they published the trading update on 1 October - really hope they manage that. The danger is they are now in hoc to the accountants. I used to work for PwC - I can imagine all those billable hours and PCF seem to be unable to escape the trap, which concerns me more than the original misstatement..

[dandigirl] 27/9/2021 09:19

Tomorrow SUS are to publish interims to 31/07/21.

I predict an excellent set of figures with an increase in divi.

Meanwhile, Franklin and his board continue to faff around. Shame on them for presiding over this debacle and not resolving it speedily. Hopefully, SOMERS will clear this lot out in short order.

Grrrrh!

[graham1ty] 27/9/2021 07:23

Silence.

On the morning that GT faces heavy sanction for its Pat Val audits, and the FRC conclude that the 2015, 16, and 17 audits were not worth the paper they were written on.

Who has been sanctioned at PCF ? who has resigned from the Audit Committee ?

[georgelees] 26/9/2021 17:35

What are the chances of a Monday update?

They must have had enough time, even if they had to start from scratch, would they not wish to release they prior year before the 2021 year end or will they hold it back and do the 2020 and 2021 update after 1 October but before they are kicked off the exchange.

I would have thought if they can release the 2020 before the year end they should?

[rmillaree] 23/9/2021 16:49

thanks for clarification cjd - one less thing to worry about i would say - i did have a quick look on google and it does seem that firms are being pushed to proactively flag up the relevant FSCS limits which is a great thing for everyone really.

[cjd190573] 23/9/2021 13:52

I have savings held with Paragon, Gatehouse and Vanquis and I get an annual email from each, reminding me of my FSCS protection. Think this is just a customer service driven thing, particularly with challenger banks and nothing too disconcerting.

[seasidehippo] 23/9/2021 13:36

P.s. i have today even as an ex retail customer received the same reminder letter you received.

[seasidehippo] 23/9/2021 11:41

I too was a retail customer on a 3 month notice account but i gave notice the day after the shares were suspended. I was not aware that any communication providing assurance was ever sent to retail customers following the suspension, which i have mixed views about. I can confirm that i received all my money together with the interest in a timely and professional manner.

[the big fella] 22/9/2021 15:37

I have a fixed term cash deposit with PCF I did a few years back at decent rates (well for deposit interest anyway) and today they sent me a "reminder of the deposit guarantee scheme". Fortunately since the credit crunch I spread the cash risk so I hold c 80k with them but I can't recall receiving a reminder of this nature before.
Lets hope its just a regulatory reminder they have to send and nothing more than that.

[graham1ty] 22/9/2021 12:07

Millaree.......that is what they do......

Er, they are a Bank.........

[rmillaree] 22/9/2021 11:34

well its fairly obvious to me there is only one elephant in the room and its hiding in plain sight - its a stonkingly big elephant i must say.

"Loan and advances to customers 433,694 338,503"

[cc2014] 22/9/2021 07:53

Capitalising things which shouldn't be or forgetting to write them off when diposed of is possible.

Here are the assets on the balance sheet:
2020 2019
Cash and balances at central banks 24,731 7,371
Loan and advances to customers 433,694 338,503
Debt instruments at FVOCI 9,095 19,638
Office equipment, motor vehicles and right-of-use assets 2,605 579
Goodwill and other intangible assets 4,260 5,941
Deferred tax assets 1,494 1,105
Trade and other assets 2,794 4,932
Total Assets 478,673 378,069

Capitalising things goes into office equipment, MV's and right of use assets, possibly trade and other assets Could easily be subject to sloppy accounting or more likley things which are capitalised but they don't have the evidence.

Even if they cannot find any of the assets it would only cost £2.6m to write them off. Same with trade and other assets. Again only £2.8m to write it all off.
At a practical level surely they can substantiate 75% of it which means the write off would be around £1m.

So, I don't think it's that as if the solution was to write off £1m to get your accounts signed off, at this stage you would just do it.

[seasidehippo] 21/9/2021 21:30

I could be completely wrong but i guess this has little to do with integrity of computer systems. More likely IMO to be manual errors for example say in capitalising costs which should have been written off to P&L or visa versa. Role on the next update!!

[hopespr1ngseternal] 21/9/2021 15:37

FWIW my understanding is that the systems which generate the accounting entries on the loan and deposit portfolios are tried and tested and highly regarded within the industry. I continue to take comfort from this and the fact that on my reading of the RNS releases the issues appear confined to y/e Sept 2020 where far the biggest item is an impairment charge of 7.8m (2019 2.2m) much of which will (we hope) be reversed in 2021.It looks more and more as though we will hear nothing until after the Sept 30th year end which will leave a window of seven weeks for a comprehensive update, publication of 2020 finals and 2021 interims and application to have the suspension lifted.

[cc2014] 21/9/2021 13:50

What's puzzling me most is why is it PCF can't get their accounts done. The normal timeline without Covid would be something like:

Publish preliminary unaudited accounts about 6-8 weeks after year. Year end is 30/09/20 and these popped out on 09/12/20. All good

Publish audited accounts about 4-6 weeks after unaudited accounts so that takes us to end of January 2021.

So, that's 8 months they've been sorting this.

I'm a qualified accountant but I have no experience in the banking sector. However, I'm struggling to find a suitable superlative to express my views.

PCF take money from savers (and the treasury) and loan it to customers. They must know how must they've taken from savers as each saver has an individual account with the transactions in. Not so difficult to add them all up. The same for borrowers. All done at the individual level and again easy to add up.

After that what's left of any magnitude in accounting terms? Not much. The monthly payroll and the office rent. Impairments of course but the last RNS suggest the issues are with the numbers before impairments.


I can as an accountant come up with any number of possible reasons for why PCF can't add up but I keep coming back round to either the computer software is deficient or they have a bunch of off computer systems (spreadsheet or paper or other legacy systems) which are deficient.

It's a puzzle to be sure.

[dandigirl] 20/9/2021 13:22

Thank you, Hopes. Appreciated. :)

[hopespr1ngseternal] 20/9/2021 12:56

Dandi: for someone who claims to be ‘very angry’ it’s a bit rich to tell others to lighten up. But as you say you’re entitled to waste your own and others’ time however you wish. Muse on or perhaps I should say ‘sing heavenly muse’. I’m with Hippo!

[dandigirl] 20/9/2021 12:41

Hippo: You are not required to post. It’s my time and I will waste it however.

Besides it seems to rattle your cage and Hopes every time. :)

[seasidehippo] 20/9/2021 10:59

All this talk is a waste of time until we hear further news.

[dandigirl] 20/9/2021 08:29

Lighten up Hopes. Just musing to help the time pass. Feel free to join in.

Besides numbers, the market also does Reputation and PCF’s has been trashed in the short term at least.

….and the CFO is not doing herself any favours. She needs to get a grip and tell those number crunchers to finish up.

[hopespr1ngseternal] 19/9/2021 20:22

Why should this be the case with a new CEO imminent and a highly regarded CFO? The market deals in numbers. Remember the old saying ‘in the short term a voting machine, in the long term a weighing machine’. IMHO all this talk of the company going private is a waste of time - a red herring based on unfounded speculation.