Pcf Share Discussion Threads

[cheshire man] 24/10/2019 13:01

Very good TS no rush to sell here :-)

[graham1ty] 24/10/2019 07:29

All pretty good. Reaching immediate £350m loan book target a year ahead of plan. NIM holding up, impairments staying down.....cannot ask for more than that.

Slightly surprised that the new £1bn three year target has not been included from the presentation last week.

PCF remains a class act, growing rapidly, but keeping a beady eye on margin and quality of lending book. Operational gearing will kick in soon and eps will take off

[igoe104] 24/10/2019 07:19

Lending portfolio reaches GBP338m, trading in line with market expectation and the Azule acquisition has a very successful first year
PCF, the AIM-listed specialist bank, is pleased to advise that for the year ended 30 September 2019 trading is in line with market expectations.
New business originations are 51% ahead of last year at GBP223m (2018: GBP148m) and the quality of those originations has met management targets, with 74% (2018: 70%) being in our prime credit grades. Our lending portfolio has grown to GBP338m, an increase of 54% (2018: GBP219m) and is close to our GBP350m target, a year ahead of plan.
Over the year, we have continued to increase our lending to the prime sector, a strategic decision enabled by the reduced cost of funding provided by our banking licence. This is aligned to our cautious outlook for the UK economy. Despite the competitiveness of the prime lending markets for business asset finance and consumer motor finance, our net interest margin has held up well in the year at 7.9% (2018: 8.2%). We continue to reflect our appetite for risk through the pricing of our lending products and our loan impairment charge remains unchanged from the 0.9% reported at the Interim stage.
On 15 October 2019 the Financial Conduct Authority (FCA) announced plans to regulate the way in which some car retailers and brokers in the motor finance sector receive commission. A set of clear rules would address a lack of transparency and serve consumers better. PCF welcomes this initiative from the FCA as we believe that standardised commission rates will ensure better outcomes for customers and a level playing field for motor finance providers.
We have also continued to build on our success in the retail deposit market and our deposit base increased to GBP265m (2018: GBP191m). Access to the retail deposit market plus the steps taken earlier in the year to put in place a GBP15m Tier 2 capital facility, provide our platform for continued growth.
PCF acquired Azule Limited in October 2018. Azule is a UK market leader in the provision of specialist funding services to the broadcast and media industry. Azule originated GBP77m of new business in the eleven-month period (12 months to June 2018: GBP55m) and through its hybrid brokerage and 'own book' model generated fee income of GBP1m (12 months to June 2018: GBP0.8m). Our first year of ownership has seen excellent results which means that the threshold for the First Deferred Consideration Payment has been met and a GBP750k cash payment will be made in November 2019.
Our nascent Property Bridging Finance venture has also had a good first nine months with originations of GBP14m (2018: GBPNIL).
Scott Maybury, Chief Executive of PCF, commented:
"The strategy to diversify our asset classes and income streams is proving a great success and playing an important role in growing our lending portfolio. We have made excellent progress against ambitious targets and we continue to deliver strong growth despite the challenging economic and political backdrop. While there may well be some tightening of the economic cycle over the next 12 to 24 months, given the small market share we currently enjoy, we remain confident that we can continue to grow as planned whilst maintaining our prudent appetite for risk.
"We look forward to reporting our Final Results on 4 December 2019."

[graham1ty] 23/10/2019 11:32

Trading statement tomorrow. Hopefully that consolidates the share price above 30p and shows that all is on track. It is over four months since the last trading update ( which is too long for any plc IMHO. It is therefore also four months since any new broker forecasts. Again, a catch up is long overdue

GLA

[geraldus] 16/10/2019 12:06

Another acquisition likely to reach 1billion.I had seen eps of 5p forecast for September 21.

[graham1ty] 16/10/2019 11:06

I think there were concerns that the rate of growth had slowed. I spoke to an analyst of Challenger Banks and he suggested that worries over the economy, NIM and credit quality might have affected PCF. I would prefer them to be cautious, and not expand for expansions sake. I wondered whether the £350m target might be pushed out a little.

Last night seems to confirm that the growth is on track, NIM is being maintained, and credit discipline remains in place. What is new is a £1bn target. In June they said £750m by 2022. Last night they said £1bn “in three years” which would be by Sept 2022. This might be a target for one further year out, cannot tell from the exact phrasing used, but even if that is the target for the year beyond the previous target, that would still be 33% growth ( £1bn vs £750m)

[cc2014] 16/10/2019 10:56

Nothing to say really Graham that we haven't previously discussed. Current P/E is 13.5 and they plan to nearly triple the profits in three years.

[geraldus] 16/10/2019 10:39

Great posts,thanks.

[graham1ty] 16/10/2019 10:29

Sorry, CC we overlapped. Was typing when yrs arrived.

I hope the tone was upbeat ? All sounds very positive. Thanks for feedback

[graham1ty] 16/10/2019 10:28

PCF presented in Manchester last night. I’ve checked their website and the presentation is already up.

There is a stack of new ( and I would have thought price sensitive) information. The Overview slide has been updated since the last presentation ( June 19).

So, now £350m asset backed portfolio ( was £276m). £250m of retail deposits ( was £204m). £15m Tier 2 Capital facility executed ( June said “finalising221;). Staff 103 ( was 93). And they have updated NIM 7.9% ( was 8% last year); Return on Equity 11.7% ( up from 11.4%); Return on Assets 2.7% ( the same).

The 2019 Achievements section now targets a £1bn portfolio within three years !!!! The Outlook section quotes Shore Capital forecasts ( not the Company’s, but still quoted freely by them) showing portfolio growth to £475m, then £600m over the next two years. Shows eps growing from 2.8p in the year ending to 3.6p then 4.5p

All very positive and shows growth has continued apace, but not at the expense of NIM.

[cc2014] 16/10/2019 10:23

I attended.

Market expectations
2018,2019,2020,2021
Net Interest Income 15.0,22.7,30.2,39.0
Adj. Profit before tax 5.4,8.0,11.0,14.0
Adj EPS 2.1,2.8,3.6,4.5
Lending Portfoli 219,350,475,600

New target (for me) diversified lending portfolio. total £1b
Asset finance £350m
Motor finance £250m
Property finance £150m
New £150m
New £100m

Nothing changes my mind to do anything but hold for the next 5 years

[graham1ty] 16/10/2019 09:40

Anyone attend presentation in Manchester last night ?

[123davidgwilym] 15/10/2019 09:42

I don't believe the regulator can impose a blanket ban on commission. What he'll do is ban a particular kind of commission: Difference in Charge, whereby the retailer gets more commission depending on the rate he charges the customer. It's been around forever on HP business from used car dealers.
There's nothing inherently wrong with PCP, and it's often a bargain for the customer.
The product I've been expecting to blow up for years is GAP Insurance (Guaranteed Asset Protection), which is aggressively sold by dealers who earn an excessive amount of commission.

[geraldus] 15/10/2019 08:44

I am well aware of that as are other investors.It will mean more business for PCF now.They wiil NOT be dragged down by this.

[graham1ty] 15/10/2019 08:33

PCPs are nothing to do with PCF. They have NEVER had or offered PCPs.

PCF might get dragged down by this story, but they have NO exposure to PCPs

[davidosh] 14/10/2019 01:11

Just to let shareholders and potential investors in PCF Bank know that the management team will be exhibiting and presenting at the two day Mello London investor conference in Chiswick London W4 on Tuesday 12th and Wednesday 13th November and there will be an opportunity to take part in a Q&A at the end of each presentation. These are just a few of the companies taking part...



There will also be lots of quality keynote speakers, panel sessions and round table discussions looking at investment strategies & portfolio diversification plus sessions on.... How does a market maker work your share trades? What is undertaken in a company audit? What is hidden on the dark web? & how can retail investors get access to placings?



If you would like to join the thousand investors at the event you can gain 30% discount on your ticket by entering the code ADVFN30 when you purchase your ticket.

[igoe104] 08/10/2019 14:33

What's the point sharesoc, the trading update isn't to the 24th October ?

so very limited information is going to from the seminar.

[sharesoc] 08/10/2019 14:21

We have a growth company seminar on the 15th October in Manchester with PCF Group lined up to present. This may be of interest to potential investors or current shareholders. More details and registration can be found here:

[macc1] 07/10/2019 10:02

Hi all,

Here's a 2 minute intro to the PCF savings division. It's not specific to investors but they do suggest where they see the market going etc.

[topvest] 07/10/2019 08:04

I don't quite understand why PCP is a selling scandal really. It gives people expensive cars at affordable prices without having to put much cash down. The terms and conditions are all pretty clear and if you get an excess mileage charge or damage the car then it's pretty clear that you have to pay up at the end.

[graham1ty] 06/10/2019 17:38

Though PCF may get tarred with the same brush.

PCF do not have, and never had, any exposure to PCP loans

[geraldus] 06/10/2019 08:18

Looks like PCP type loans coming under fire from the government again.A mis- selling scandal according to the Sunday Telegraph today.Havn't read the article but should level the playing field for PCF eventually.

[geraldus] 04/10/2019 10:24

At least they are 'looking forward' to announcing the update.It sounds better,just the outlook to consider.Although they possibly did the RNS today because they were fed up with people ringing up. GLA

[graham1ty] 04/10/2019 07:14

Defensive RNS explaining corporate timetable. No T/U until 24th. So what on Earth is he going to talk about in Manchester on 15th ? Will not be able to comment on current lending environment, effect on NIM, size of loan book.

I suppose that the existing expectations are for very rapid growth £350m loan book soon and £700m a couple of years later. Hopefully Scott can say “all is on track: if not we would have had to RNS it”. Which would still be very positive