Pcf Share Discussion Threads

[dandigirl] 13/7/2023 14:08

Hi, on reflection your are probably more right than me.

We shouldn't be guessing, though, should we?

That said, SOMERS can pretty much do as it wishes now that the quote has gone
Although I guess regulators have to be consulted until the licence is cancelled they are not going to take issue with additional capital.

SOMERS surely must have reached a view - the faster the wind-down the greater the recovery.

Perplexed as to why the board continues at the size and cost it is.

[cc2014] 12/7/2023 08:47

"PCF also announces that it has put in place a £10 million standby funding facility with its substantial
shareholder, Somers Limited (“the Facility”). Subject to its conditions being satisfied, the Company
can call upon Somers Limited to invest up to £10,000,000 in the Company in consideration of the issue
to it of up to 200,000,000 new ordinary shares of £0.05 each in the Company. The Facility has a fiveyear availability period during which to draw and which can be drawn in multiple tranches."

I read it different to you Dandigirl. It does not look like an ordinary cash flow facility to me. It reads as the company can ask Somers for cash in tranches in exchange for shares.

One might ask why this is in place? and whether following the subsequent RNS it is now irrelevant.

[dandigirl] 11/7/2023 17:18

My tuppence worth comes pretty much to the same conclusion i.e. value around 5p per share.

The 20/06 announcement does, initially, refers to it being a funding facility. It is convertible only subject to conditions being met. I imagine that SOMERS would have agreed to those conditions being very much in its favour.

So, hopefully, it is a cash flow facility simply to smooth repayments and receipts.

The 06/07 announcement informs of the sale and goes on to say that PCF is no longer looking for strategic opportunities. It does seem that there is not much left to sell.

The group is in run-off - now mainly repaying deposits as they fall due.

I ask myself why it is necessary to have such a relatively big board and a large number of executives given the straight-forwardness of the business.

Probably wishful thinking, but again hopefully we are nearing the end. Certainly SOMERS have an interest in concluding wind-up sooner rather than later in order to maximise recovery.

Watch for the handing in of the bank licence. After that, things should move quickly.

[cc2014] 10/7/2023 09:33

I canont say I fully understand the standby facility.

The purpose of such facilities is usually to provide short term cash flow requirements, but from what I've seen before this was usually done in the form of loans rather than new equity. Something new to me.

So, issuing new equity would not be a short term facility at all, at least in my mind.

I can only construe that Somers either
a) perceive the value of the wind-up to be in excess of 5p a share and it's a way for them to get a bigger slice of the pie (seeks unlikely it's a bit obvious) or
b) the value of the wind-up is around 5p and they just want to ensure a smooth transaction
c) PCF does not have enough ready cash (seems very unlikely) and Somers are sort of obligated by the FCA as part of the wind-down transaction.


As usual with PCF everything is a puzzle. If I consider the second RNS it begins to look a bit more like they've sold the loan book but the purchaser isn't paying for it all up front in cash but on some form of delayed trache mechanism, the value of which is dependent on the outcome and therefore the standby facility is what is says it is and will be called it the outcome of the sale transaction is poor. Or it could be something completely different.

Anyways, the sale of the loan book brings PCF to a quicker conclusion than I expected and hopefully a positive resolution for all shareholders.

[catabrit] 08/7/2023 22:44

Great reply cjd and much appreciated.

[cjd190573] 08/7/2023 21:14

Hi Dandi, Catabrit et al,
Hope all is well.
Firstly Dandi, I think the weird announcement that appeared on the website in June appears to be pre-cursory to the announcement from Thursday, insofar that, as at the point of sale, PCF Bank will no longer be receiving revenue.
This is in effect, a loan in the form of a placing from Soners at £0.05 p/s that is intended to facilitate the remainder of the wind-down of the business.
The £38m, (as it stood at FY22) may be illiquid until realisation of certain assets or conditions.
I believe that the position is now £38m + £10m/533.3 m shares, or around £0.09 p/s.
We know that since September last year that there will be significant redundancy costs, nine further months of operational costs and impairment.
In my view, Thursday was the official start of the wind-down, there will undoubtedly be more HR implications, working capital closure, claims, lease finalisation and indeed Stran/Richardson milking it for all it is worth, though in theory now, they are Project Managers and the payroll should be minimal.
The crumb of comfort that I am holding onto, is the notional value of the placing insofar that this is back to this universally recognisable value of £0.05.
Also the fact that the loan book was sold within eight months was encouraging, suggesting that it was indeed of quality and may already be accounted for within the £38m.
The only caveat is that Somers arrangement does have a quoted period of five years but everything left can now be outsourced and PCF concluded.
This is probably why at this stage there is no talk of numbers.
Take care

[catabrit] 07/7/2023 14:59

So I have called PCF Bank, Asset Match and Tavistock. Asset Match were the most helpful but they don’t have any further information to provide. Tavistock called me back and said they’d forward my query on to the two individuals dealing with PCF Bank.

I’m shocked by the scant information provided to shareholders.

If others can continue to bombard Tavistock and PCF Bank that would be helpful.

[catabrit] 07/7/2023 09:29

I called and left a message with Tavistock Communications. I’ll let you know if they call me back.

[dandigirl] 06/7/2023 17:56

catabrit: Agreed. Just maybe the Board is doing the right thing in selling these assets sooner rather than later leaving the possibility of a pay-out eventually.

Please do post if they respond to your request. It would be good to know where the NAPS is now. Maybe you could enquire if the Board intend to issue interims this year? In days gone by they were published late June/early July.

There is also a rather odd announcement pre-dating the above on 20 June 2023.

[catabrit] 06/7/2023 17:26

I’m surprised there’s no mention of price and nothing about planned distributions etc. It leaves us hanging!

[catabrit] 06/7/2023 16:07

Interesting. I wonder what that means in terms of book value per share? I’ll contact them. If anyone hears anything, please let me know.

[dandigirl] 06/7/2023 15:56

Posted today on the companies website:

PCF Group PLC announces that, as part of its continued withdrawal from the UK retail banking market in an orderly manner, its subsidiaries, PCF Bank Limited (“Bank”) and PCF Credit Limited have completed the sale of their retail, commercial and bridging loan portfolios and related business assets to a third-party specialist purchaser and servicer of receivables. In addition the Company has also ceased its activities in respect of pro-actively seeking any further strategic opportunities for itself and its subsidiaries. The Company will issue further updates in due course.

[dandigirl] 11/4/2023 21:40

NAPS - 10p?!

[dandigirl] 11/4/2023 21:11

hxxps://www.investormeetcompany.com/investor/meeting/pcf-group-agm

[maverick39] 11/4/2023 08:26

Portfolio size is a guesstimate based on latest accounts. CFO said at the AGM that losses were running at between £500k and £1million per month, which is incredible

[graham1ty] 07/4/2023 10:04

Maverick, did that number come from the AGM ?

[maverick39] 31/3/2023 18:24

Any ideas how this business has a strongly performing portfolio of £250m-£300m but is managing to lose £500k to £1m per month?

[catabrit] 28/3/2023 19:24

Pretty much.

[cjd190573] 28/3/2023 18:47

Is it not just the case that everyone is holding out for liquidation proceeds?

[catabrit] 28/3/2023 16:08

It’s true re the lack of liquidity. But then in fairness, there’s been no news and we’ve had a banking crisis in the US and over in Switzerland. So, what do you expect? Why buy? Why sell? You might as well hold out for the annual meeting and then form a judgment afterwards. I know that’s frustrating Graham and I’m sorry you’ve been burnt here but the stance by the market is pretty logical. I suspect we might see more trading as the liquidation process becomes clearer. Personally, I’m holding out for the proceeds. I’ve mentally written these off as a zero and look forward to getting my cheques in the post or my broker account credited.

[graham1ty] 28/3/2023 15:44

Well, fat lot of good the first Auction was with Asset Match. Not a single share traded. There is NEVER liquidity after a delisting, and the shares are effectively untradable.

[dandigirl] 17/3/2023 16:59

No point in attending the AGM. The future of PCF is at the whim of Somers.

[graham1ty] 17/3/2023 07:24

Sadly, I am on holiday on 31 March. Mind you, attending the meeting would not have been good for my heart.

Presumably, their task was to “stabilise and turn around PCF”. In that they failed.

[sam55todd] 12/3/2023 19:33

Just wondering how's PCF' situation after two US banks collapsed last week?
(all three: deposits {outflow}, reserves {gov. debt} and loan impairment provision)