Share Name Share Symbol Market Type Share ISIN Share Description
Pcf Group Plc LSE:PCF London Ordinary Share GB0004189378 ORD 5P
  Price Change % Change Share Price Shares Traded Last Trade
  -0.50 -2.63% 18.50 32,000 08:00:00
Bid Price Offer Price High Price Low Price Open Price
18.00 19.00 18.50 18.50 18.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonequity Investment Instruments 34.50 8.02 2.70 6.9 46
Last Trade Time Trade Type Trade Size Trade Price Currency
08:16:05 O 12,000 18.05 GBX

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Pcf (PCF) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2020-09-21 15:32:0518.50100,00018,500.00O
2020-09-21 14:31:2618.0610018.06O
2020-09-21 13:30:4518.0050,2979,053.46O
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Pcf (PCF) Top Chat Posts

Pcf Daily Update: Pcf Group Plc is listed in the Nonequity Investment Instruments sector of the London Stock Exchange with ticker PCF. The last closing price for Pcf was 19p.
Pcf Group Plc has a 4 week average price of 18.50p and a 12 week average price of 17.50p.
The 1 year high share price is 38.50p while the 1 year low share price is currently 13.50p.
There are currently 250,240,136 shares in issue and the average daily traded volume is 79,743 shares. The market capitalisation of Pcf Group Plc is £46,294,425.16.
graham1ty: Was just looking back through charts. PCF first reached 20p in Sept 2015, so coming up for six years ago. The accounts had come out in July 2015, showing a loan book up 13% to £100m. New business originations were £56m, pre tax £2.1m and Return on Assets of 2.2%. Return on Equity had risen from 6.2% to 10.4%. Shareholders funds were £11.8m. Six years on, the loan book is £401m, new business originations were £276m, pre tax £8m, return on assets 2.9% and return on equity 12.6%. Shareholders funds are £59m. They have a banking license and cheaper money. They have acquired Azule and launched bridge finance. The convertible loan notes have converted, and there have been issues of equity, so the equity and capital base has considerably strengthened. And the share price is back at 20p..........㈹7;
123davidgwilym: I’m pleased the share price is recovering. It’s going to be tough for every bank, but PCFG is well placed to weather the storm (forgive the cliche) as it has several times in the past.
graham1ty: Cracking good update. But Singers and Panmures just have no buyers. No one at all. Despite Simon Thomson, the share price drifts. I know the market is rubbish, but for a quality, fast growing, prudent company like PCF, weakness in the share price should be an opportunity. It would take just one institution, and they could hoover up loose stock and could have picked up 1-2m shares by now. A reasonable holding.
graham1ty: CC, I don’t think the instos mind particularly whether they are declared ( ie above 3%) or not. It is more about having a decent slug of shares. If you are a reasonable size fund, having just 3% ( ie about £2.7m worth) will make zippidy doo dah difference to your performance ( for a £500m Fund, that is 0.5%, so even if PCF doubles in value, the fund performance is only improved by 0.5%. I am sure there have been instos who have said “when you can get us £10m, now we are talking. Anything below that is hardly worth our time: not because we do not like you, but because it will be meaningless in the overall size of our fund”. I have been really disappointed in the brokers. When that last fund raising came round, they had arranged lots of meetings ( 17, if I recall) but not one was prepared to put their money where their mouth was. If just one insto had taken a big slug of the Placing, it would not have been done at such a discount. There is no indication that Panmures or Shore Cap have a buyer in their back pocket. And that is a failure as a NOMAD. They should have persuaded one of the instos that PCF is good, and even if the order was “only buy when you get decent size, but generally at these levels, we will soak up any volume you see” then an insto could have picked up reasonable size. In my view, part of the NOMADs role is that if they get a seller, trying to sell, say, 500,000 they know immediately where to go without damaging the share price.
cc2014: The institutions may not be intersted now but over my many years of investing I have learnt that when they change their mind they will be happy to pay twice the price it is now and buy in large volume. It happens over and over again and it never ceases to amaze me the poor decisions that are made on behalf of fund investors. It's frustrating having to wait for whatever trigger comes along to change things. Would I be happy with the share price going up by 15% every year for the next 5 years? yes of course. Would I prefer it went up 50% by the end of the week? For sure. I'm not sure I'm in agreement with you Graham on funds not being interested because they can't get a decent slice of shares. Most funds look to acquire something below the 3% level so they don't have to declare their movements. Often much lower, say 1%. Every time ST at IC tips this we see a million shares plus traded without any difficulty and it rarely moves the price more than 5% by the time it's settled down. If someone wanted 3million shares I'm pretty sure they could get them within a reasonable period of time at a reasonable price. I think the issue is the long term holders you mention above are no more willing to sell them than we are for 35p. It's not enough to even make them bother to run it through their calculator, because they can see the undervaluation as we can and the growth that's already on it's way. At 50p they might see things differently, but only if the price gets to that by the end of the week. If it takes 2 years to get to 50p, PCF will have more growth and more ambition and holders will want a higher price. It's self-perpetuating I know but until we get some long term instituational holders moving in we are going to be stuck with far too many PI's with short term time horizons who have come in on the back of ST. Tbh it's a good tip by him and some of the shareholders will be sticky but not enough of them. The magic number everyone seems to talk about is £100m market cap. We appear to be at £89m today on a 2019 PER of 13.1. That's not so racy for a growth stock like this and when Scott and team deliver what's forecast this year, we should tip through that £100m barrier. Then we will find out if stocks really do re-rate above £100m market cap.
cc2014: And there we go. A delayed 60k sell which has been holding the share price back. Imho that's a pretty decent price for 60k at 35.855p and well within the spread suggesting the MM are happy to take them at that price. Trouble is if I was a betting man I'd say the seller hasn't finished yet. It doesn't look like he is in a particular hurry though and happy to release his holding without disturbing the share price.
cc2014: Share price got a bit stuck yesterday and I'm beginning to think that large 356k trade at 36p must have been a sell as on the balance of likelyhood something has been holding the price back against a flow of constant buying. Also, if it was a buy I think someone would have had to pay more. They good a good price from the MM though looking at the time they must have placed the trade. Looks like the share price is about to move up again. Buyers slowly having to pay a little more trade by trade. Fingers crossed
cc2014: Nothing we can do about it Graham. I note the selling kicked off yesterday morning. It's difficult to say because FTSE gapped down yesterday aggressively but I'm more minded to think it was the collapse in the Amigo share price that did it. I'm afraid part of the challenge of the stock market is that not all holders will fully understand what PCF do and we've seen PCF come under pressure as PFG, NSF, FCF and others in the sub-prime sector's business models have proved to be flawed. We had the fall on the PCP finance too, which I think Scott must be tired of repeating endlessly PCF don't do. We know that PCF's business is in excess of 75% prime and growing) and it's cost of financing are low as it's a bank and the interest rates it charges aren't under srutiny by the government, but nevertheless there are always holders who will sell on a bad day on FTSE or on news which they think is related but actually isn't. As we've said before the company will keep on delivering, profits will grow, eventually the market cap will reach £100m and then the share price will start to get re-rated. Market cap currently £85m so not so far to go. I expect it will gap-up on the next trading update/results.
cc2014: Share price reaction would seem to be a result of 1PM and possibly MCS trading statement yesterday. I'll deal with MCS first as it shouldn't haven't impacted PCF but sometimes some people mistakenly see a read across. MCS which provide very high rate loans (50%+ a year) say it's getting harder to do new business. Hardly surprising since the government is clamping down in this area. Shouldn't have affected PCF as PCF don't this these types of loans. Now 1PM. Issue seems to be increase in impairment provision which they call prudent but on the other hand actual writdowns are 1% and in-line with previous year. I guess they say they see something coming down the road or maybe they are just building up the balance sheet whilst they are making decent profits in case something does come down the road. 1PM cost of funds 4%. NIM 12%. so, they are lending at 16% PCF costs of funds 2.4%. NIM 8% so, they are lending at 10.4% and plan to continue to reduce NIM to focus on customers with prime credit history. You can see why 1PM might want to increase provision for impairments. Your customer base if you are lending at 16% is not going to have the greatest track record. It's a different busines than PCF and I think the fall in share price by association is unfair. Nothing I can do about it of course except wait for Scott and the team to continue delivering what they've promised and done so far.
cc2014: PCF has two areas of business split roughly 50/50: 1. Lending to consumers for cars 2. Lending to business for vehicles, plant and equipment It has historically funded the lending through the wholesale market and retained earnings but around March became a bank and since then is shifting from the wholesale market towards retail deposits on fixed rate bonds. This significantly reduces its costs long term (or improves NIM – net interest margin) but this has not yet showed up in the finance figures as it’s only been a few months and there have been set up costs to becoming a bank. It currently has a portfolio size of £146m, which grew by 20% last year and plans to increase this to £350m by 2020 and £750m by 2022. The banking license and being able to take retail deposits is the trigger for this. PCF currently has a market cap of £59.4m based on a share price of 28p per share, Net assets of £39.6m. If you run the P/E calculation based on underlying profits of £5m, corporation tax rate of 19% it gives a P/E of 14.7. The P/E calculation takes no account of assets though so it would seem better to look at this based on a multiple of future earnings. On this basis the market capitalisation exceeds the net assets by £59.4m-£39.6m= £19.8m which is only 4.9 years profits after tax. In summary my belief in this trade is based on: 1. The market cap is only 4.9 times current profits once existing assets are allowed for. 2. The 4.9 multiple is based on current profits. If the portfolio grows fivefold at an improved NIM then it’s clear the market cap will be higher than £59m. One could make an estimate of this. (Speculate a five bagger minimum?) 3. Although PCF have stated they have no plans to cross sell other products as a bank, they do have a banking licence. There is a thought in the back of my head that 5 years down the line, their ambitions will be different than they are today. The success of Shawbrook, Aldermore, OSB, PAG and the other challenger banks is bound to start to look attractive at some point in the future as the balance sheet strengthens. But maybe there’s a reason the share price is so low? I’ve checked the following: 1. Are the directors credible? Who knows but I’ve met Scott Maybury the Chief Executive present at an investors evening and he seemed sensible enough to me. All the directors and non-execs have been buying shares over the last year which is always a good sign 2. Is the business plan any good? Rather unusually for AIM it’s set out and available on line in this documentation pages 7-11: 3. Maybe there will be a load of bad debts in the future? You can assess this yourself on page 12 in the above link. The bad debt write off charge has dropped from 5% in 2009 to 0.5% today and given high levels of employment I see no reason for this to worsen anytime soon. PCF only loan to prime credit customers and don’t do PCP and continue to pursue this policy and the percentage of business within the top 4 credit grades increased to 63% from 57% all year. 4.Maybe the government are going to investigate them for inappropriate lending? PCF are at the complete opposite end of the market to PFG only doing prime and no sub-prime but yet I suspect PFG is dragging down PCF share price by association. 5. Maybe the balance sheet hides a load of issues? Page 18 of the presentation is pretty clear. Of their £172m of assets, there is £2.7m of intangibles. I’m always suspicious of intangibles. In this case I suspect it’s the investment in the new banking software but whatever it is, it doesn’t really matter. Even if the £2.7m is actually worth nothing, it doesn’t affect anything as it’s negligible in size to the market capitalisation and future profits I can’t find any skeletons in the cupboard other than general Brexit scaremongering. I will be holding long term. The presentations set out the strategy and gives me a high level of conviction this will be a multi-bagger, even thought it's already multi-bagged if you bought back in 2011
Pcf share price data is direct from the London Stock Exchange
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