Pcf Share Discussion Threads

[cc2014] 27/1/2022 11:37

Nothing to say. No meaningful additional information provided in presenation.

[dandigirl] 27/1/2022 10:18

Sound is awful - even with headphones - but I can still hear the waffling.

I will listen later to the recording which, hopefully, will have better sound quality.

[seasidehippo] 26/1/2022 17:16

Codswallop!!

[7rademark] 26/1/2022 16:44

Pushing the share price blue was hard work for the mms, they found it very easy erasing 40% off the share price yesterday.

[dandigirl] 26/1/2022 15:17

7rademark.
Thanks.
There are some good posters on this site if you have time to look back.
We should know a lot more when the annuals are published, hopefully imminently.
You may wish to wait, though, to see if there is an RI or not.
I should add we are nursing big "losses". Our modest purchases are to top-up and level down, just a bit. :)

[seasidehippo] 26/1/2022 15:05

Sustained buying this p.m. looks good, especially given that there arn't that many shares in free flow.

[7rademark] 26/1/2022 12:02

Thanks DG , you obviously know your stuff, I took a punt this morning based on yesterday's over reaction, a bit more reading and I'll probably buy in.

[hopespr1ngseternal] 26/1/2022 11:20

I would be a buyer at these levels if I weren’t already overweight. The new team appears competent and should be given a chance to deliver. Once the weak holders are out the share price should strengthen provided that the message from management remains positive.

[dandigirl] 26/1/2022 10:47

Hi - My thoughts, briefly.

Most on here liked the top two former execs and the business model although I had reservations regarding the AZULE purchase, it represented only a small addition. Having obtained a banking licence, PCF was thought to be ripe and readied for expansion.

However, with hindsight, it seems that having obtained the banking licence the company did not put in place all the necessary IT infrastructure and people to operate as one. IMV, a big failure against Franklin and his board. He should have made sure that such things were addressed.

A new CFO arrives and pulls at the thread of regulatory reporting. From there, the jumper unravelled. Some wonder, and I am one of them, that perhaps there was an over reaction to things that could have been rectified quietly internally without all this woo-ha. But that is now history. We are where we are.

But, more importantly, where are we going? The new CFO will be ensuring that the IT will be brought up to requirements. There are several other new hires but, particularly, I am heartened that Franklin is departing the scene to be replaced by what by all accounts is an excellent new Chairman. He doesn't take prisoners. :)

We still don't know what SOMERS intend but all the signs are that they are staying the course. And why not? Having taken the pain, they will probably stay in for what we hope will be the gain back to normality.

PCF still have the opportunity to increase market share and return to making a decent return on capital.

The future looks bright. Some would say that their glass is more than half-full.

[7rademark] 26/1/2022 10:04

I'm considering taking a position, yesterday's fall seems overdone, probably holders taking out money that's been tied up for so long, any compelling reason to buy in your opinion.

[dandigirl] 26/1/2022 09:19

Topped up at 12.25! Not many though! Just rounding up.

[7rademark] 26/1/2022 08:37

Looks a good recovery play, still making money, as long as they get their act together there is value here.

[cc2014] 25/1/2022 22:08

PCF still not taking in customer deposits Topvest.

[topvest] 25/1/2022 20:03

What's happening on the customer deposit side?

[the big fella] 25/1/2022 19:37

Glad it’s come back as I have a large fixed term deposit maturing in August (it was an industry leading rate at the time of placement) which they would not let me close early. I will most certainly be moving elsewhere. I may not be alone in my thinking which potentially may cause them a problem.

[toptomcat] 25/1/2022 17:55

ST comments in ICPCF's recovery potential revealedThe Aim-traded specialist bank has finally resumed trading again and its long-awaited results highlight an undervalued profitable business with a solid loan bookPCF's recovery potential revealed· Net loans and advance down slightly to £425m· New business originations a fifth lower at £122.9m· Less than 4 per cent of portfolio in forbearance at 31 March 2021· Interim pre-tax profit halves to £1.2m due to sharp rise in cost-to-income ratioShares in Aim-traded specialist bank PCF (PCF:15p) finally returned to trading this week, having been suspended since last summer ('PCF's financial control failings exposed', 28 June 2021).Previous management's failure to properly report PCF's exposure from funding provided by PCF Bank to its wholly owned subsidiary Azule led to an Independent Review that also identified several deficiencies and failures in PCF Bank's financial control and reporting function. It has been a tortuous process for the new management team to put in place the requisite reporting and compliance procedures as part of the overall remediation process. It has come at a cost, too.Although the net interest margin dipped only slightly to 6.8 per cent in the six months to 31 March 2021, and net operating income rose 4 per cent to £14.7m, PCF's cost-to-income ratio ballooned from 48.2 to 66.3 per cent as operating expenses rose 40 per cent to £9.8m. The upshot being that although the credit impairment charge declined from £4.7m to £3.8m, the additional £2.8m of operating expenses meant that pre-tax profit fell from £2.5m to £1.2m. However, there are several positives.Firstly, the impairment charge included an additional £3.2m provision for defaulted receivables that were either seriously in arrears or where the assets acting as security have been sold. It looks like a kitchen sink exercise to clean up the loan book.Secondly, PCF's stable capital ratio of 16.7 per cent remains comfortable as does its liquidity coverage ratio of 488 per cent. The £425m loan book is being funded by £338m of low-cost customer deposits, £59.6m of drawings against the Bank of England's ultra-low interest rate Term Funding Schemes, and the balance is from £54.9m (21.5p a share) of shareholders' equity.Thirdly, impairment charge on the £186m consumer loan book (mainly used car loans) was minuscule (£0.4m) and is likely to remain low given that used car prices have soared in the past 12 months, so even if a customer defaults there is hefty security. PCF's £64m bridging finance loan book is high quality (nil impairments) and is well diversified, too. Moreover, with 93 per cent of new business originations in prime credit grades, then default risk has diminished.Fourthly, the £175m business loan book incurred slightly lower impairments of £3.1m, but the majority of the charge represented the kitchen sink exercise.Investors need to wait the release of the annual results (to 30 September 2021) for when the board will reinstate financial targets and guidance. However, PCF remains profitable even at this low point, has successfully navigated through the Covid-19 pandemic and a major overhaul of its management and financial controls, and retains a solid loan book which generates a stable net interest margin.Priced on a 31 per cent discount to book value, the shares offer recovery potential. Hold.

[dandigirl] 25/1/2022 17:27

A J Bell still not inserting a price in our portfolios. Hmm.

[dandigirl] 25/1/2022 17:12

hopes: I loved that too. So £12.4m of impaired loans, supposedly £1.7m after Expected Credit Losses, sold for £2.8m giving a profit of £1.1m! Accounting jiggery-pokery IMV.

But the real action is in the second half and we still have to wait for this until publication of the full year's figures. New targets also eagerly awaited with Annuals or soon thereafter.

Suspect that the suspension has been lifted in order to help with the pricing of the RI. Closed at 13p.

[georgelees] 25/1/2022 16:40

Looks like progress. Will watch the Q&A on Thursday with interest. Good there is a profit, without the exceptionals even better.... I presume the huge spread is putting off buyers and there is a backlog of forced sellers, which will clear. So hopefully give it a bit of time. I rather hope the Investors Chronicle write it up again, they were big fans, and that should not have changed, if anything it is better value and now has stronger processes in place.

[topvest] 25/1/2022 16:16

Yes, doesn't look too bad.

[hopespr1ngseternal] 25/1/2022 15:37

Profit of 1.1m on sale of defaulted receivables!

[rmillaree] 25/1/2022 13:11

Cheers peeps on reflection the better than i thought it would be comments should be taken in context of the likely later ramp up in spending and perhaps continued reduction in earned income - this being the case its really probably not any better than i expected if there is a decent chance they are making nil profits or may be loss making as we speak - re reading sketchy update today its pretty poor to give us no idea ref underlying profitabilty past march - its like them saying they havent added up the figures for subsequent 6 months yet. Perhaps i should be happy that they are trading again without immediate dilution - certainly no complaints from me if i choose not to sell and get well diluted from this point - at least i have the option to take what i have left and cut my losses - i do feel lack of update ref april onwards means we are at a disadvantage compared to the real money that will likely know more than us.

[seasidehippo] 25/1/2022 10:52

27% spread!! market doesn't know whether to go for a shave or a haircut.

We all need more information, which hopefully will be forthcoming by Thursday?

[geraldus] 25/1/2022 10:30

Better than I thought so far today.I wonder if we will hear from ST.