Pcf Share Discussion Threads

[graham1ty] 13/6/2022 14:14

They have been there a while. In the 2015 accounts Hendrick van Heijst held 5.74% and Beleggingsclub Stockpaert 3.77%

[cc2014] 13/6/2022 13:36

IIRC one of them appeared around the time of the rights issue at around 30p.

Lots of volume went through after the rights issue and I think that was the moment they went over 3%. Not sure if it was this crew though.

Not much point in them selling now. Choosing when to use the capital losses may be of some value to them.

[graham1ty] 13/6/2022 13:13

I cannot recall how the two Dutch shareholders came to be on the Register. They have both lost a fortune…..

Would love to hear their views on this fiasco…

[goddamitmaverick] 13/6/2022 10:39

Who’s on the bid ? Market makers, bottom feeders?

[che7win] 13/6/2022 10:10

3.5p on the bid, glad I only had a couple of hundred pounds in this dog.Market is very unimpressed.

[hopespr1ngseternal] 11/6/2022 15:14

Pcf has a viable business if it can share costs. Hence a business combination is the way forward not a sale and liquidation. This is particularly the case given that assets worth 6 million have been derecognised because of going concern issues.

[goddamitmaverick] 09/6/2022 18:00

You need critical mass as a bank to cover the core cost base with all the regulatory burden. Probably a bal sheet of £1bn to make a decent return. The problem is when you can’t generate capital from earnings you depend on your investors. If they don’t show up you have to sell or fold unless you find new backers . Start ups are “ clean” existing players have legacy systems and higher cost bases. Value to a buyer is probably capital less a few months losses less wind down costs . That would be consistent with minority holding in combined Castle Trust , 20% ? Or maybe just wait and bid for loan portfolio and deposit book only and let existing shareholders and management wind down ops. Chances of a white knight with a premium bid seem low and a non bank buyer takes time to get approval.

[dandigirl] 09/6/2022 08:41

topvest: so what would you have us do please?

We have two choices - stay or go.

Those who wish to sell can do so.

Those who wish to wait for more info rather than sell can do so. We are in this group.

Anything else to be helpful please?

[topvest] 08/6/2022 20:42

There seems to be a fair amout of ignoring the obvious on this board. I am simply trying to be helpful and to point out the obvious:
1. PCF have announced they are going to make a heavy loss and are being temporarily supported by Somers.
2. They are in discussions on an offer that is highly dilutive to all shareholders including Somers. Highly dilutive at a share price of 5p obviously means pretty close to nothing. If this company had any great future ahead it would have rejected the possible offer immediately, rather than enter into early stage discussions.

[graham1ty] 08/6/2022 15:57

Do you think the Board are surprised by the share price weakness ? Do they think they have done a good job, rescuing poor old PCF from the previous evil regime ( or as others might put it, ruining a perfectly good business ?

We do not know the extent of accounting issues, though we are told it was not fraud and there are no criminal investigations. However, the “remedial̶1; action has destroyed 90% of shareholder value, and brought the Company, apparently, to its knees ?

What would careful examination of all they have done in the last year reveal ? That new systems have “added value” by making systems more robust ? That monies paid to consultants has been well spent ? That the Board is great value and all the Directors who have been on the Board throughout have done a great job ?

One day, I hope, someone will examine the actions of the last year, and see whose interests have been best served. Not the owners of the business, us and Somers. On that note, I would love to see anger and outspokenness from Somers. They have lost more than anyone else. Where is the outrage ? Where are the sackings on the Board ? Tim Franklin, Chairman, received £95,000 each of the last three years, and £90,000 in 2018. So, a short £500,000 for presiding over this debacle. Every penny of that should be given back

[hopespr1ngseternal] 08/6/2022 15:25

Cc: try to buy in the open market below 5p and see how many shares you can get without pushing up the price. Very few I suspect.

[cc2014] 08/6/2022 14:28

Also with the share price now 10% below the OO price, one wonders how much money will flow in through the OO.

The interim accounts may change people's views, but right now the market is showing a lack of confidence.

[che7win] 08/6/2022 14:06

Somers now down another 10% on their subscription

[che7win] 08/6/2022 07:27

If they can't even get Somers weighting correctly, no wonder they can't run a bank

[123davidgwilym] 07/6/2022 21:19

If I remember correctly, any proposal will have to be endorsed by a majority of the minority shareholders.

[hopespr1ngseternal] 07/6/2022 20:46

Topvest: of course the bottom feeders are circling. Let’s hope that PCF’s business prospects are good enough that Somers rejects any lowball offer. We will have a clearer idea of how the business is doing after release of 2022 interims later this month.

[topvest] 07/6/2022 19:43

Apologies in advance for banging on about the same thing, but the RNS said this:

"The Board of PCF Group plc ("PCF" or the "Company") announces that it is in early-stage discussions with Castle Trust Capital plc ("Castle"), in relation to a possible all share offer for the entire issued and to be issued shares of the Company (the "Possible Offer"). Under the terms of the Possible Offer, it is expected that PCF shareholders would have a small minority position in the combined group."

This implies that they are in discussions with Castle which would result in Castle being worth several multiples of PCF. There is no material upside in such a situation surely as its a rescue bid and priced accordingly? Read the RNS which talks about "a small minority position". Such situations don't normally end well.

[dandigirl] 07/6/2022 17:59

hopes: of course. It is the listing that is an attraction if not the attraction for Castle.

Still of the view though that a deal will not proceed as the price will not be acceptable to Somers. It would be like selling at the bottom.

[dandigirl] 07/6/2022 17:53

Thank you CC. Your thoughts appreciated greatly.

[hopespr1ngseternal] 07/6/2022 13:18

Agree with Solarno. A reverse takeover is much more appealing to minority shareholders than selling to an unlisted entity. And it is obviously good news that there is now more than one interested party.

[zxie] 07/6/2022 11:57

INSP shares jump soon

[cc2014] 07/6/2022 09:47

#4036.

My post from the weekend below. I make it 1.5 new for 1 current if shareholders other than Somers are required to fully take up the open offer.




Somers currently hold 161.6m shares out of 251m 64.4%

When they put in the £4.2m they get an extra 84.5m shares

So, if no-one subscribes to the OO then:
Somers would own 246.1m shares out of 335.5m 73.3%

If the OO is fully taken up another 137m shares are issued and we then get:
Somers owning 246.1m shares out of 472.5m 52.0%


That would be quite a dilution for Somers.


Also in my opinion,
Putting £11m cash into something with a current market cap of £17m seems a bit desperate.
Current shareholders excluding Somers are 90m shares or around £4.5m. Asking these to put £6.85m or one and a half times the value of their current isn't going to happen. Thus the OO.

[cc2014] 07/6/2022 09:42

Dandi - Post 4028

"It might help if you could give an idea of what you consider a fair current price and how you arrive at it please? Where I am coming from is to ask whether or not 5p is a reasonable number? Are Somers paying sufficient?"

I may write a longer reponse another time but the sun is out today for the first time in what seems like ages so shares seem less of a priority.

Is 5p fair? Put simply we can't say because we haven't seen sight of the interims. Somers no doubt will have seen sight of the monthly management accounts.

What we do know is that Somers are tipping in money today through the Sandbox rather than doing it all in one process with the OO. My guess is this is because they need to prop up the capital ratios for the end of the quarter and it can't wait. I could be wrong but that's my guess. On this basis PCF's losses must be not insigificant. Unfortunately I can't work out the number precisely because the Pillar3 document does not reveal the exact amount of capital required by the PRA.

What I'm left with though is that if PCF continue running losses of say £7m a year for 2022, 2023 and 2024 then PCF is worth a penny or two, because there will be more diluting capital raises to come to keep the regulatory capital in order.

If it's say £7m in 2022, £5m in 2023, £3m in 2024 I think it depends how well this OO is supported. My guess is that it won't be well supported. Too many red flags for the institutions plus PCF is no so small it won't be worth the analysts time. If PCF get £5m including Somers I'd say the shares are worth 3p. If they get £10m say 4p.

If I could be persuaded that the numbers look like £7m in 2022, £2m loss in 2023 and a £1m profit in 2024, I'd say 5p is fair enough.


I could flex the numbers anywhere from there. We need to see the interims. I can't understand what's holding them up. The finals have been published. Push the button on the computer to update the year end and then run the half year. All the accounting treatments were no doubt agreed with the auditors weeks or months ago and the interims don't require auditing. If they want the OO done by the end of the month and want to give two or three weeks for investors to apply to maximise the takeup then I'd expect the interims by the end of the week.

[dandigirl] 07/6/2022 09:36

Looks like around 1 new for 5 current then.