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
  0.00 0.0% 24.00 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonequity Investment Instruments 42.34 2.11 0.60 40.0 60
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 24.00 GBX

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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 24p.
Pcf Group Plc has a 4 week average price of 0p and a 12 week average price of 0p.
The 1 year high share price is 30.50p while the 1 year low share price is currently 18.50p.
There are currently 250,240,136 shares in issue and the average daily traded volume is 0 shares. The market capitalisation of Pcf Group Plc is £60,057,632.64.
the millipede: “what will matter is the earnings of the company going foward. A large exceptional item in 2020 is not the problem unless it implies reduced future earnings. This is fairly basic stuff.“ This is not always/often true on AIM where sentiment can impact share prices for years. Frankly, it could be years before anyone new is prepared to trust management here. And that potentially means that for a long time there will be no buyers of the stock at any price. In my view this is likely to impact the share price far more than “earnings of the company going forward.” I almost think the most preferable outcome is that the company does go private and comes back to AIM in - say - five years time.
cc2014: I'm struggling to find a way to express my views on the RNS this morning. Once again the absolute minimum information possible provided. No timeline on the accounts No timeline on when the financial issues will be resolved No update on how the remediation work is progressing No update on how current business is going No boundary on how large the financial issues are No comment on the cause of the financial issues I used to be a holder of this stock and have been keeping up to date with the situation with a view to buying back once the stock relisted as I felt it likely it would come back at a price lower than it's fair value as maybe some distressed shareholders would want out at any price. Regrettably the way the Board are treating their existing shareholders during the suspension now makes this stock almost uninvestable at any price for me. I do not trust them. Of course, there's always a price low enough to tempt me in but that price is now looking extremely low. I would imagine some of the instiutions on the register will be thinking the same. I'm also now beginning to wonder given how shareholders are being treated whether the shares will ever come back from suspension and whether it is Somer's plan to quietly delist PCF so as to keep the embarrassment out of the public domain. I hold out some hope for all shareholders that in the end the accounting mess is not that financially significant. It's possible, but given PCF don't seem able to quantify it after this length of time, it's very troubling.
cc2014: It's my view that PCF have until cop on 30th June to get their annual accounts agreed by the auditors else they will be subject to enforcement action by the PRA. Effectively I imagine this would mean PCF being restricted from making new loans, thereby winding down the loan book over time. In addition PCF also have to publish their interims by cop on 30th June too, although these do not require auditing. Again if they don't publish they would be subject to enforcement action by the PRA To be completely open with everyone I am no expert in this at all. It's just my view that if PCF are unable to do their accounts, it is then not possible to calculate the capital ratios and on that basis enforcement follows. There are lots of other reasons enforcement might take place if you read the PRA guidance but I have no real insight into how fast the PRA move on these matters. I do have insight on the ability of building socities to get out of the enforcement framework once it's been applied and that is extremely challenging. Also, under AIM rules if PCF fail to do the accounts by June 30th, AIM will suspend them, or rather in this circumstance will not allow un-suspension until the accounts are done. For, all the above reason I see it as highly likely both the finals and interims will pop up soon, even if the auditors qualify the report. Because at the end of the day, the only reason the audit cannot be completed is if PCF fail to provide substantiation (because the systems are so poor) I'll expand on this a little. Let's say you are in a debate with the auditors of sustantianting a £1m accrual and the auditors think it isn't justified and should be £0.5m. At this late stage, whether you think the auditors are right or wrong you just roll over and agree to their figure. You could continue this line of thought across nearly everything. Let's say there's disagreement over the impairment value and the amount in dispute is £5m. Whtether you agree or not again you roll over and accept the auditors demands because the damage to the accounts is less than the damage of PRA enforcement. I think you can pretty much run this argument over even the most dire situations. The numbers might be horrible but better to explain horrible numbers than PRA enforcement. The other reason I think something will pop up in the next few days is that if they fail to do the accounts on time, soon after the media will notice.
carcosa: I would expect, given the length of time investing, that similar suspension events have occurred with an occasional holding in your portfolio. Suspensions in the manner that has occurred with PCF never end well. Idle speculation serves no purpose other than to feed conspiracy theories. A usually partial explanation will be provided ahead of the shares resuming trading (if they ever do). As an investor there is nothing to be gained or lost financially even if an entire explanation is forthcoming. You can't profitably trade your way out of it as the share price will be re-aligned upon the suspension being lifted; and you can bet your bottom dollar that retail investors will not be able to sell shares in any quantity until well after the opening unless you have a full service broker. One thing is practically guaranteed... the share price will open substantially lower. Best case scenario, otherwise PCF is worthless. Given all the talk years ago on Stockopedia (am no longer a subscriber) regarding red flags there was, as usual, ample opportunity to get out of PCF prior to the suspension. But some lessons need to be re-learnt several times, it seems.
graham1ty: TIME ploughs ahead, now up 25% YTD PCF dead in the water, 25% down. From the low point of c12.5p, TIME is up 150% From the low point of c14.5p PCF is up c60%. In absolute terms, it was for ten years a neck and neck race as to whose share price was higher, OPM ahead in the early 2010s, then PCF caught up and pulled ahead. But that has reversed and now TIME clearly ahead. I really do think PCF is a far higher quality business, with a better Prime loan book, and better systems and management. Oh, and a banking license. Not reflected in the price. Patience, patience
cc2014: Hi Graham, I have tried my very best to go through the impairment numbers and overlay my view of the economy and the accouting rules on this. My challenge is that I really can't come to any view with sufficient conviction to be confident about buying at the current share price. For what it's worth I have a weakly held view (about 60/40) that the impairments look sufficient large that they aren't all required, so I think whatever is reported next will be positive and the share price will rise. However, about a year later, I think the economy is going to start to drag due to taxation and the public's disposable income is going to be under pressure and impairments will once again start to rise. Who knows. PCF is fundamentally a good company. On a 10 year time horizon I'm sure you will make good money from here. Whether the share price goes lower before it goes higher is something I'm sure we all wish we knew.
graham1ty: Dandi, I am sure it will come right, as PCF is a quality company. However, investors are not seeing that at the moment. Up at 45p it had a premium for the imminent banking licence, strong growth, good acquisitions, lots of presentations and everyone likes Scott. Now the shine has gone and will need to be rebuilt. It is not currently a stock that people see bouncing, so “no need to hold”. Rather than looking forward to better prospects, the share price is down 25% this year. I know it is only a silly game, but in the U.K. Stockchallenge, with 410 investors choosing 5 stocks for the year ( so over 2000 entries) only one person nominated PCF. So, a straw poll ( via a private investor competition) and only a single person put PCF in their top five prospects. Just shows where sentiment is. The price is below the 30p of the Feb 2019 Placing ( and we all complained that price was too low !!) And below the March 2017 Placing at 25p. Is PCF really worth only half what it was prior to getting the banking licence ? TIME could report that “The Group's lending book remains robust and resilient with pandemic-related forbearance having reduced from over £25m in June 2020 to under £2.5m at 31 March 2021. Most significantly, as at 31 March 2021, total arrears had fallen below the pre-Covid Levels of 28 February 2020 for the first time since the start of the pandemic.“ which is why their share price has started moving. PCF have not yet produced accounts to Sept 2020 and the best they can say is “As a result, the Group lending portfolio increased slightly from £434 million at 30 September 2020 to £440 million. Our short-term objective is to maintain the portfolio around this level until we judge that resuming stronger portfolio growth is prudent”. Which sounds really pessimistic with everything on hold, no excitement about prospects and more like battening down the hatches.... Don’t get me wrong, I have an enormous position here. Just frustrated !!! Hoping once positive news flow starts, and Investor attention turns their way again, that we can bounce pretty strongly
graham1ty: Good numbers from TIME, but PCF flatlines. The PCF share price is now well below TIME. There are no forecasts for PCF available to private investors, and the last RNS said it would be a while before guidance is restored. PCF has lost its reputation: no accounts, changes to announced numbers, FD goes, COO retires. Share price below where it was five years ago. Lots of stocks have seen strong bounces, reflecting hope for the end of Covid, and recovery. Not PCF. No chatter on here, no interest from private investors. Flat lining.......
graham1ty: My comment on 4 March is now even more depressing: “Just looked back at the chart. How depressing. PCF first hit these levels at the back end of 2015 !!! Back then the loan book was £112m for the period to March 2016 ( today £434m ) and new business was £63m( today £270m). Pretax profits were £3.5m or 1.8p of earnings ( c£11m last year, if you add back impairments) They were discussing plans for the banking licence. PCF is now a bank, c4 times larger, in gross terms, and the share price is no higher. I wonder where we would be without Covid....... The sooner back to normal the better for our health, and for shareholders health !!” It first got to 20p in summer 2015. Coming up for six years ago.....I know no one could foresee Covid, but it is pretty depressing that for ordinary shareholders, even allowing for about a penny of dividend in total, there has been no share price progression since then......
sev22: Just a reminder that PCF is one of Simon Thompson's 10 Bargain Shares for 2020 (write up below from three weeks ago). These are massively under-valued, despite market conditions. Aim-traded specialist bank PCF (PCF) made it into his 2018 Bargain Shares portfolio when the shares were priced at 27p, and they offer an even more attractive investment proposition now given the significant operational progress made by the company in the past two years. Annual results released in early December revealed a 55 per cent hike in the company’s lending portfolio in the 12 months to 30 September 2019, almost hitting the board’s £350m lending target 12 months ahead of schedule. Importantly, an increasing proportion of new business originations are to prime borrowers, representing almost three-quarters of all new loans made in the 12-month trading period. This has helped to diversify the loan book, which is now spread across 21,250 customers, up from 17,000 customers at the same stage in 2018. A key driver in the improvement in the quality of PCF’s loan book has been the lower cost of funding provided by its banking licence. PCF’s retail deposit base surged from £191m to £267m in the 2018-19 financial year, thus enabling PCF to recycle the low-cost funding – on average the bank’s 6,250 (4,500 in 2018) retail deposit customers earn an interest rate of 2.2 per cent on a deposit of £42,400 over a term of almost three years – into both business lending to small and medium-sized enterprises (SMEs), mainly for vehicles, plant and equipment, and consumer lending concentrated on nearly new and used carsImportantly, credit quality remains sound. Impairments remain unchanged at 0.8 per cent of receivable balances, a satisfactory level of write-downs at this point of the credit cycle after taking into account the accelerated portfolio growth rate. It’s worth noting, too, that PCF’s net interest margin (NIM) only dropped from 8.2 per cent to 7.8 per cent year on year even though there was a higher proportion of lower-margin and lower-risk prime lending in the mix. Successfully diversifying lending lines: PCF’s business finance loan portfolio has been the key driver of the growth, increasing from £121m to £178m last financial year. The fact that 71 per cent of all new business originations are from prime borrowers is reassuring, as is the move to diversify revenue streams. For instance, the autumn 2018 acquisition of Azule, a specialist funding provider to individuals and businesses in the broadcast and media industry, generates annual fee income of £1m through its hybrid brokerage and ‘own book’ business model. PCF has also dipped its toe into residential property bridging finance, making £14m of loans last financial year. In consumer finance, PCF’s core used car market has been much more resilient to the weakening of consumer demand for cars, which has primarily hit new car sales. Around 96 per cent of lending here is on nearly new or used cars and PCF avoids taking on residual risk as it doesn’t offer a personal contract plan (PCP) product. The company’s success in consumer finance – the motor finance portfolio increased from £98m to £128m in the 2018-19 financial year – is in part due to a specialisation in niche, leisure vehicles such as horseboxes and motor homes, which helped boost consumer lending by 18 per cent to £73m in the latest 12-month trading period. The portfolio has a high customer retention rate, too, as 10 per cent of consumer finance volumes are derived from existing customers, implying a higher than average level of customer satisfaction. Solid trading prospects: Chief executive Scott Maybury, who has led the transformation of PCF, confirms that new business originations remain strong, and the company continues to maintain prudent underwriting standards, adopting a cautious risk appetite and offering customers sensible terms of business. The board’s goal is to generate sustainable returns from a lending portfolio that has a wide spread of risk with a focus on having a greater proportion of prime quality customers. Though not sanguine about the economic outlook, the directors feel the company’s larger scale, agility and well-established business model provide them with confidence for the future. They certainly have reason to feel this way as September was a record month for the company and the momentum continued in October. Also, SMEs are likely to feel more confident in their future capital investment plans when Brexit uncertainty recedes and the UK’s future trading arrangements with the EU are agreed. There is a real possibility that could happen later this year, thus unleashing pent-up loan demand and in turn underpinning the board’s next target of achieving a loan portfolio of £750m and return on equity of 15 per cent by September 2022. Critically, PCF has the capital in place to fund lending growth towards that target. The company’s NAV increased by 38 per cent to £58.8m following a £10.75m equity raise last year, and PCF’s Common Equity Tier 1 Ratio (CET1) of 18 per cent is comfortably ahead of the banking regulator’s minimum requirement. The capital position has been supplemented with a new £15m Tier 2 capital facility which can be drawn as required. Double-digit earnings growth being undervalued: Not surprisingly, with impairments low and the quality of the loan book improving, PCF is seeing a step change in its profitability, driven by the operational leverage of the business as lending volumes ramp up at a faster rate than the company’s cost base. Pre-tax profits surged by 54 per cent to £8m on revenue of £22.2m (2018: £14.7m) in the 12 months to 30 September 2019 to produce a post-tax return on equity of 12.6 per cent, ahead of the company’s medium-term target of 12.5 per cent. EPS surged by 35 per cent to 2.7p to support a 33 per cent hike in the dividend to 0.4p a share (ex-dividend date 19 March 2020). Analyst Shailesh Raikundlia at house broker Panmure Gordon is pencilling in 31 per cent growth in current-year revenue and pre-tax profits to £29.2m and £10.5m, respectively, based on the loan book rising to £450m by September 2020. These forecasts assume that PCF’s administration costs increase from £12m to £15m, and net loss provisions rise from £2.2m to £3.7m, the net £4.5m rise in these costs being less than the estimated £7m increase in interest income and fees earned. This explains why pre-tax profit is forecast to rise from £8m to £10.5m. On this basis, expect 2020 EPS of 3.5p and a payout of 0.6p a share, implying the shares are being rated on a modest forward PE ratio of 9.5, and offer a prospective dividend yield of 1.8 per cent. Trading on a current-year price-to-book value (PBV) of 1.3 times, I feel that the Brexit discount embedded in PCF’s modest valuation is set to unwind in the year ahead, driven by the ongoing strong operational performance and greater clarity on the UK’s departure from the EU. Offering almost 50 cent upside to my 50p fair value of the equity – equivalent to a September 2021 PBV of 1.6 times – and on a bargain rating of 0.6, PCF’s shares are worth buying.
Pcf share price data is direct from the London Stock Exchange
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