Pcf Share Discussion Threads

[the millipede] 02/8/2021 11:25

There is absolutely nothing small shareholders can do here. With shares suspended, the company is not obliged to tell us anything because there is no market for shares. We can not DO anything with any information anyway.

IMO this is clearly a mess of far bigger proportions than many here understand. We should not be focussing on the figures they have given IMVHO (e.g. 1% overstatement in capital ratio, previous accounts not impacted) but on the fact that Maybury walked/was fired and we have been told every person in the finance dept has potentially been involved in cooking the books ("members of the finance team, under instruction, manually adjusting..... deliberate effort to facilitate specific results...... possible collusion.... inadequate level of skill and experience..... poor culture in the finance team resulting in a lack of, and reluctance to challenge its leadership").

To me, this implies the investigation could turn up literally anything and the longer it goes on, the worse the outcome is likely to be. I imagine the Board is doing their best (why wouldn't they) and really don't need the added burden of communicating with us thrown into the mix. I suspect if small shareholders kick up a stink they are more likely to decide that permanent delisting (which will happen automatically on Nov 19 if shares are still suspended) is the answer.

[graham1ty] 02/8/2021 08:07

CC, I suspect PCF are just “keeping out the way” while they sort things out. So, lending only to the absolute top credit clients. And only occasional new deposit taking.

Even if ( big if) things resolve themselves, growth in the loan book will have been delayed by a year or two. At best it will be static until they show that all systems now work, and are robust. It may be another six months or so before they even think about expanding further ( and therefore need new deposits)

[dandigirl] 02/8/2021 08:04

In a nutshell, Franklin should be making a statement.

[cc2014] 02/8/2021 07:47

No RNS. I'm shocked and surprised but on the other hand not shocked. I've come to understand now that the Board have little interest in the 35% of shareholders who aren't Somers and Somers have little interest in them either.

If I was a shareholder I'd be beginning to think about what remedies I had to force the Board to disclose more or to remove them. I think it's impossible to remove them as Somers have the deciding votes, but I'm not sure on that. Likewise I'm not sure whether it is possible to call an EGM but again I suspect that may be difficult.


More concerningly I begin to think there's more going on here than shareholders are being told. I can't help but keep looking at the rates they are offering savers and think that lending may be curtailed. They are offering 0.75% on 1 year bonds and 0.76% on two year bonds, and no longer timeframe. Given the going rate is around 1.1% and most of their savers will have been drawn in by best buy tables and will therefore be "rate tarts", savers money must be flowing out in some quantity and thus I construe PCF are allowing savers funds to flow out because they aren't lending it to borrowers.

Further I'm struggling with the time delay on suspension. When we boil it down they calculated the large credit exposure wrong (deliberately) but as far as I can tell it's come back in-line. They also got the capital ratio wrong but only by 1% and it's still very healthy (or at least was when it was reported). Sure a whole load of remidation is required to keep the PRA happy but I find it difficult to understand why the accounts cannot be progressed. Surely the existing auditors have a list of issues or they don't and if they do one just gets on and resolves them. Unless of course the records are in such a mess the auditors can't sign them off, but if that's true how can the directors go around assuring underlying profit for the rest of the year?

Regrettably I've moved the entry price I am willing to pay when the shares reopen down again.

[graham1ty] 02/8/2021 07:30

Well, what to say.......?

[hopespr1ngseternal] 01/8/2021 21:50

We have a legitimate grievance that the company has neither filed interim financial statements by the extended regulatory deadline nor given any reason for not doing so. Perhaps forgivable if (but only if) there is a substantial RNS tomorrow.

[graham1ty] 01/8/2021 20:07

Shareholders have a legitimate grievance already, whether they RNS or not tomorrow. I am staggered by the lack of communication over three months.

We own the business as shareholders. However bad it turns out to be, we need to know. There is no issue of insider trading or anything, as it is suspended. Tell us what the issues are ( or expand on the last RNS)

[hopespr1ngseternal] 01/8/2021 14:06

Shareholders will have a legitimate grievance if the company does not issue a significant RNS tomorrow. If the company is not yet in a position to make a significant statement surely they would have said so on Friday before the expiry of the one month extension of the filing deadline.

[seasidehippo] 30/7/2021 17:50

As its only 30th today i would have thought that Monday is more likely

[dandigirl] 30/7/2021 16:57

What’s your best guess, hippo?

[seasidehippo] 30/7/2021 14:32

Pigs might fly!!

[cc2014] 30/7/2021 08:25

Maybe a 16:35 RNS?

[dandigirl] 30/7/2021 07:39

I am eating humble pie for breakfast.

I was wrong!

No RNS.

How disrespectful.

That Franklin must be a real piece of work.

Apologies to all those who called this right. Would have placed a huge bet that something would be out this a.m.

Hmm. Not fitting, not proper, not right, not fair.

[graham1ty] 29/7/2021 14:09

You would assume so, dandi, but the communication this far has hardly been “in a timely, transparent and comprehensive manner" as promised.

[dandigirl] 29/7/2021 13:36

Amen to that! But surely something has to be said tomorrow?

[graham1ty] 29/7/2021 11:30

Millipede, no one can be in doubt about the serious nature of this crisis. The PRA and AIM should be all over PCF like a rash, and Somers ( who may have been asleep at the wheel) will be getting almost daily briefings.

You have to assume that timetables and plans have been put forward and agreed. Dates that usually matter ( reporting dates and deadlines) are out of the window.

PCF will Report when they can. And I just hope it is bloody soon

[the millipede] 29/7/2021 11:21

Happy to be proved wrong today/ tomorrow, but my view is the suspension in May was simply preempting a sanction that would have been applied by AIM anyway when PCF missed tomorrow's deadline.

Ie, PCF were sure in May that they would not be able to deliver results by tomorrow.

The problem for us will come if they can't sort this out within 6 months of May 19th.

[cc2014] 29/7/2021 08:42

Is it a concidence that Chris Maybury at Provident has the same surname as Scott? I have no idea.

[graham1ty] 29/7/2021 08:30

And the Somers website shows PCF as 6.2% of their NAV, presumably now about 3-4%.....

So, not vastly important for Somers. I cannot see any reference on the ( quite extensive) news feed for Somers about PCF suspension and accounting issues.

Somers is quite active and is currently bidding for Thorn Group in Australia.

[graham1ty] 29/7/2021 08:25

BCB was 10% of Somers NAV. That explains the transfer of shares to Somers, the parent

[graham1ty] 29/7/2021 08:23

I had not picked up that Somers has sold BCB

hxxps://www.somers.limited/download_file/force/346/287/

[dandigirl] 29/7/2021 07:58

There is a deadline of tomorrow. PCF have to say something tomorrow latest.

My view was that if tomorrow's deadline was not going to be met, say so. sooner rather than later.

Either they publish figures or seek yet another extension - or announce another scenario.

There has been more than enough time to look at every entry for the last years.

I am hopeful that we will see the beginning of the end, tomorrow.

[graham1ty] 28/7/2021 22:36

Quite difficult to produce interims when they have not done last years accounts......

[cc2014] 28/7/2021 14:02

Oh and the Board didn't actually say they would produce the interim results by the last day of the month. What they said was they had got an extension for a month and would provide an update in due course.

The Group announces that it will not publish its interim financial results, for the half year ended 31 March 2021, by 30 June 2021. AIM Regulation has issued guidance (dated 9 June 2020 and reconfirmed on 27 January 2021) permitting an extension of one month for the reporting of its half-yearly results. The shares will remain suspended as announced by the Company on 28 June 2021.

Of course as Dandigirl says if they are not going to report Friday they should inform the market.

[seasidehippo] 28/7/2021 13:07

Excellent post, I agree entirely