Pcf Share Discussion Threads

[netcurtains] 02/3/2018 15:41

Motley fool done very positive write up today

[graham1ty] 02/3/2018 12:57

Any feedback from the AGM ?

[cc2014] 02/3/2018 10:59

Hi Graham,

Good to hear from you as always

I would assume that the funding they access from the wholesale market had a mixed range of maturities and therefore they need to try and scale in the retail deposits to match.

In addition I see they have access to the governments term funding facility which is at a lower rate than retail deposits (although the scheme is or is going to be scaled back?

A good day I think. Everything being delivered as planned which is always the acid test. Directors can be as ambitious as they like but I like to see delivery and that's what's happened today.

I love this stock as there's nothing I need to do but sit back and wait for Scott and the team to carry on delivering as planned.


Price action:
I guess we will struggle to get through 30 on an immediate basis.
Too many PI's bought at 28 and slightly below in the last 6 weeks a small proportion of which will be happy to flip for 2p. Need to get rid of them. These kind of investors weren't long term holders anyway and were always going to sell in the short term.
I see someone is frigging around with the order book trying to keep the price down. As I'm writing they've just pulled their order at 30 on the offer. Wouldn't surprise me if they replace it soon.

[graham1ty] 02/3/2018 10:57

Reiterated growth in loan book, shown strong growth, restated targets for 2020.

And the price is now falling ! Perverse.

If anyone has been able to get to the AGM, can they post any notes on here. Thanks

[graham1ty] 02/3/2018 10:04

Just looking at the deposit figures. They had £53m of deposits at end Sept and £81m at end Feb. That is only £28m of new retail deposits in five months.

Is that because the terms they need to offer have become more competitive ? Or they just do not “need” more deposits yet, until the loan book can expand to need them ? Scott has always said there is no point taking massive retail deposits, and then not being able to lend them on with the right Prime, near Prime borrowers. Then PCf would be paying out interest, but not yet getting loan interest back. So, he has always said they will only take new deposits as fast as they need them.

However, I had expected that to have grown a little faster. In context, with a loan book now of £172m, less than half is backed by retail deposits.

[netcurtains] 02/3/2018 09:02

It will be interesting to see if people come out of the meeting and buy some more!

[netcurtains] 02/3/2018 09:00

It is growing at a very fast rate.

I think we might be getting the hockey stick graph on the share price soon - if we're lucky and this keeps up.

[cc2014] 02/3/2018 08:52

"Our medium-term targets for the Group remain unchanged at 12.5% return on equity and a lending portfolio of GBP350m by September 2020, while asset diversification remains a goal and will follow in due course"


That's the first time I've heard Scott mention asset diversification which I assume means loans for things other than vehicles.

I'm so excited.

[cheshire man] 02/3/2018 08:19

Steering the ship in the right direction :-)

[graham1ty] 02/3/2018 08:11

Carcosa, yes, longer term expectation for overall portfolio growth, NIM etc are well flagged ( and very very strong).

But short term, replacing term debt with retail deposits should have had an immediate effect on NIM and short term profits. The market will one day focus on the vastly improved profitability for 2019 following. Was hoping a good trading statement today would steer people towards the future prospects

[carcosa] 02/3/2018 07:45

It's more or less on their website:

PCF GROUP PLC (LON:PCF) gave market guidance that they expect to grow
portfolio assets to £350m by financial year 2020 and to £750m by 2022. In addition,
the group expects to deliver an ROE of 12.5% within 3 years (2017, 8.7% reported
after costs) and an ROE of 17.5% in 5 years. Guidance for NIM (net interest margin)
on portfolio assets is a target of 7 – 8% (2017, 8.3% reported). Previous guidance
for ROAA (return on average assets) released with the 2017 interim results was for a
3 year medium term target of 2.5%.

[graham1ty] 02/3/2018 07:09

Very good statement. Strong, in line with management expectations. BUT, that is what Paul Scott does not like: none of us know what are “management expectations”. It is so much better if companies refer to “market expectations” as then we are in a position to compare.

So, good statement, but we have no idea if ahead of forecasts or not

[solarno lopez] 02/3/2018 07:08

The strong up date has been announced today

[graham1ty] 01/3/2018 14:52

I do hope that we get a strong update on deposits and an enlarged loan book. Mr Market got very excited about the banking licence and drove the share price up to 35p......but that was almost two years ago.

Well, they now have the licence, on time, and on budget. Their cost of borrowing is falling, and their loan book is rising. Eps are due to double over the next two years, yet we sit below the mid 2016 share price.

Wake up, Mr Market

[netcurtains] 01/3/2018 09:31

share pickers: agm tomorrow

[davidosh] 22/2/2018 16:18

Now all confirmed and they will present to investors on the Friday 27th April

Why not come and meet 65 good quality companies

[davidosh] 22/2/2018 16:18

Now all confirmed and they will present to investors on the Thursday 26th April

Why not come and meet 65 good quality companies

[davidosh] 20/2/2018 14:17

Not quite signed on the dotted line but I understand PCF want to come and present at the event in April so if any of you cannot make it to the Agm hopefully you will have a second chance to meet management there.

[cc2014] 20/2/2018 08:56

Indeed. 30 on the bid would do me for this week.

Those two trades in the last half hour yesterday at 29.85 and 29.99 suggest the trading gods may shine on me.

It's great when stocks shoot up but actually I prefer them to go up in nice straight lines a little bit each day.

A little bit of sunshine every day rather makes me feel good

[netcurtains] 20/2/2018 07:05

Be great if we could break out beyond 35.

[graham1ty] 19/2/2018 17:15

AGM is at 10am on 2 March at 1 Cornhill, EC3V 3ND

[cc2014] 19/2/2018 09:54

Hi Graham,

I am considering going to the AGM. Do you know where it is and at what time.

I can't find anything on the PCF website.



In the meantime I see the bid has moved up again. All looking good.

[cc2014] 16/2/2018 12:32

This from the capital networks note available in the investors section on PCF website

According to our estimates, PCF Group pre-tax profits will rise in each year to c.£10m by 2020 (2017 comparable basis, £3.6m) with
EPS rising by roughly 1p per year to 3.84p. We were surprised with the level of dividend increase in 2017 of 90% to 1.9p per share.
Our original estimate was driven by our appreciation of PCF as a growth business, one typified by a low dividend as the company
retained earnings within the business to support growth. However, management have made it clear that they intend to adhere to the
discipline of paying a dividend and sought to provide a more meaningful pay out and ratio in 2017. Our new estimates see DPS rise by
a notional 10% pa from this new base, reflecting a more ordinary increase in subsequent years.

[graham1ty] 16/2/2018 07:51

Topvest, they do have a strategy. Read the Annual Reports for the last few years when they clearly discuss it. They were capital restrained until the Bank was launched. This is from the Dec 2016 results statement

“Enhancing shareholder returns on a sustainable basis is a key objective for the Group. The 19% growth in earnings per share has supported a return to the dividend list for the first time in 13 years. This has been a long held ambition for the Group and although establishing a new bank will be capital intensive, we are recommending a dividend of 0.1p per share with an intention to adopt a progressive dividend policy while maintaining a conservative cover ratio in the early years of the bank. Subject to approval by shareholders at the Annual General Meeting on 10 March 2017, this dividend will be paid on 13 April 2017 to shareholders on the register on 24 March 2017 and a scrip alternative will be made available.”

[topvest] 15/2/2018 19:21

Call me an old fashioned value investor, but I like to see a sensible dividend strategy. They don’t have one here and they need to put one in place to get more interest.