Pcf Share Discussion Threads

[dandigirl] 21/8/2023 14:52

hopes, hippo, are you lurking?

[cc2014] 21/8/2023 13:17

Still here.

It all seems to be going well for a change for shareholders which is nice to see.

[dandigirl] 20/8/2023 17:18

Wonder how many old PCF hands are still visiting this board?

[dandigirl] 20/8/2023 17:16

Just read savings accounts terms and conditions. There is a provision that allows account closure and repayment in exceptional circumstances. 12.6

These certainly are exceptional circumstances.

[dandigirl] 19/8/2023 11:57

Thank you cjd, very interesting.

You will easily be able to better 3.46, so good news for you too.

I was wondering what right pcf had to prepay term deposits early? The FAQs don't appear to cover this. I'm guessing something is in the very small print to permit this? Stran and Co appear to want to do things by the book so guess it's okay.

If only the company had provided some info regarding this!

It is to be hoped that the proceeds of sale plus interest received since less repayment of deposits and on-going humongous costs, especially Stran and Richardson's remuneration packages, leave something for shareholders, soon.

Please do post if you learn anything more. Thank you.

And a super w/end to you too.

[cjd190573] 18/8/2023 21:36

Hi Dandi

Was hoping this was great news, after such a grotty week.

The FAQ’s just take you to the website Savings page hxxps://pcf.bank/savings-faqs/

The rate I got was 3.46% which was market leading as at last July, so there is definitely some mark-up.

How things have spun on a sixpence in less than a year.

The main reason I opened this product was so I could keep an eye on things and yes they have done me a favour.

If I get any more comms, I will share.

Have a good weekend.

[dandigirl] 18/8/2023 20:20

Great news, cjd.
Thank you for posting.
Would have been great if pcf had made an announcement regarding this.
May I ask, what rate of interest are you getting now please?
Whatever, you should be able to get much better. pcf doing you a favour, it seems.
Easy access is now around 5% and one year fixed 6%.
Are the FAQs of interest? - might you paste them too please?
Don't think it can be wrapped up by 30/09 but perhaps by 31/12 or a bit before.
That's cheered me up.
Big thanks.

[cjd190573] 18/8/2023 16:45

Hi all,

Hope all is well.

Just to report in, that I opened a savings account with PCF last year and I had this email this afternoon:-

Seems they are returning funds, rather than allowing to naturally mature:-

Also looks like they are trying to get wrapped up by the end of next month.





EARLY REPAYMENT OF YOUR SAVINGS ACCOUNT(S) – PLEASE READ CAREFULLY
PCF Bank Withdrawal from UK Banking market and Closure of your account(s)
In November 2022, PCF Bank announced the start of its process of withdrawing from the UK retail banking market for strategic reasons and that it was no longer offering any new lending or savings products. As part of this process, we are now writing to you as a PCF account holder, in order to inform you of our next steps in respect of our existing accounts.
A proposal to take advantage of improved market savings rates
Since you opened your account there have been several increases in the Bank of England base rate and this has resulted in a general increase in interest rates available in the market for savings accounts.
As we are moving toward the closure of all customer accounts, we want to offer you the opportunity to take advantage of these increased rates as soon as we can and therefore, we propose to close your account(s) and return your funds to you. We will write to you shortly with the date by which we intend to do this.
Important information about what we are proposing to do:
Your account(s) will be closed without any financial penalty
You will receive your funds plus interest up to the date your account(s) are closed
Your funds and interest will be paid to the bank account linked to your savings account(s) (your ‘nominated account’)
It is very important that if you would like to change the nominated account that your funds plus interest will be paid to that you let us know as soon as possible - this can be done by logging into your PCF account via our website online banking and sending a secure message or by:

- emailing us at [e-mail]
- over the phone by phoning us on 020 7227 7577 between 9:00am and 5:00pm Monday to Friday,
- or in writing to PCF Bank Limited, Dashwood House, 69 Old Broad Street, London, EC2M 1QS.
If you are happy for us to close your account in this way, then you do not need to take any further action and we will write to you again by 30th September 2023 with details of when your account(s) will be closed and funds, plus interest, returned to your nominated account.
If you do not want us to close your account in this way, please contact us within 28 days, from the date of this email - this can be done by logging into your PCF account via our website online banking and sending a secure message, by emailing us or contacting us by phone or in writing (using the contact details above in Important Information) to enable us to understand your situation and discuss whether there are alternatives we can offer you to closure.
Further Information
You can find our Frequently Asked Questions here that may answer any immediate queries you may have.
Thank you for saving with PCF Bank.

Yours sincerely


Daryl Hopkins

[dandigirl] 04/8/2023 20:37

Am increasingly hopeful that the rise in interest rates will help us to recover more than we could have hoped for.

See that PCF have changed registered address which should help reduce costs.

Just wish Chairman Moore would grow a backbone and start culling the Board. A Board of the current size is not needed for running down the business.

At least 2 should be gone and soon.

[fumblebuck] 29/7/2023 14:00

Thank you to all on the thread. Helpful notes.

I would *guess* that they have some duty to inform borrowers that their debt is now owed to a different entity? As these were asset sales, presumably borrowers will be paying a different firm, no? My guess is their old Direct Debit was to PCF etc.

Would love to hear any thoughts on that.

FB

[dandigirl] 21/7/2023 19:33

cjd: On further reflection, I think you are right in that the 20/6 was a pre-cursor to 6/7.

How's this for some thoughts?

The 6/7 in essence informed that the business had been sold and PCF were no longer looking for buyers. Gross value about 305m. Cash 60m Others 25m Total 390m

On the other side: Retail depositors 280m. Bank debt 60m Others 10m Capital 40m Total 390m

Proceeds of sale banked - guess your own write-down - and used to repay the BoE debt and the balance invested earning good interest rates pending repaying depositors.

Retail deposits were raised when rates were low i.e. interest being paid is less than interest currently received £ for £.

Overall net effect is that NAV p s could be increasing in the short term. Hence, SOMERS willingness to provide the 20/6 facility.

At some point though the net benefit will turn into a deficit. At that point SOMERS will want to conclude matters.

Thoughts anyone out there?

[cc2014] 18/7/2023 09:39

It's a private company now so I don't think there is any requirement to share information about the sale of the loan book. Also as a private company there is no requirement to do interim accounts. Of course, they will be doing monthly management accounts which will be shared with the Board. Whether there is a requirement under their banking licence to do interims I'm not sure. Possibly/probably but I'm not sure there would be a requirement to publish then. Certaintly they will have to do the regulatory returns including the Pillar3, but those of course are not published except annually.

With regard to the standby facility where Somers put in cash for shares which would dilute(?) other shareholders this puzzles me. This would appear to favour Somers as this opportunity is not being given to all shareholders. I am surprised this is possible but I am absolutely sure the PCF directors would not do anything inappropriate.

[graham1ty] 17/7/2023 16:47

What are the legal requirements for writing to shareholders about such a substantial change in circumstances ? Just putting it on the website is hardly letting everyone know ( and anyone not on this thread may still be completely in the dark).

Presumably, also, at some stage we are due interims ( to Mar 31st) published last year in June. I know they will be “out of date”, as prior to the asset sale, but they might give some indication of overhead cost, write offs, and an ( unaudited) Balance Sheet

[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!