PCF Group PLC Trading Statement - Ahead of Market Expectations (8857R)

TIDMPCF

RNS Number : 8857R

PCF Group PLC

27 September 2017

27 September 2017

PCF Group plc

("PCF", the "Bank" or the "Group")

Trading Statement

Successful launch of retail deposit operations and results ahead of market expectations

PCF Group plc, the AIM-listed specialist bank, issues a trading update for the year ended 30 September 2017 ahead of reporting the Bank's Final Results on 5 December 2017.

The Board is pleased to report strong trading during the eleven months of the current financial year and therefore expects full year results to be ahead of market expectations.

Trading and operational highlights within the period include:

-- PCF Bank commenced retail deposit taking operations on 27 July and its success has exceeded expectations. To date, approximately GBP51m of retail deposits have been received;

-- The new banking infrastructure is functioning well and customer feedback has been extremely encouraging;

-- New business originations across the Bank are 19.3% ahead of the same period last year at GBP74.1m (11 months ending 31 August 2016: GBP62.1m), largely driven by SME lending;

-- Portfolio quality remains a focus and the loan loss impairment charge in the year to date remains at a record low of 0.5% (31 August 2016: 1.0%);

-- The portfolio of finance receivables has grown 17.5% in the period to GBP141.6m (31 August 2016: GBP120.5m);

-- Adding the diversity of retail deposits to the Bank's funding model has allowed the rationalisation of senior debt and interest rate swap facilities. This has delivered interest expense and facility cost savings in the period;

-- The Bank does not offer the Personal Contract Purchase ('PCP') product and therefore is not exposed to the inherent residual risk in that type of contract and is not vulnerable to the recent criticisms of mis-selling and poor underwriting practices for PCP's. PCF's consumer motor division predominantly finances used vehicles on fully amortising hire purchase contracts.

Scott Maybury, CEO, commented: "I am pleased to announce a strong pre-close trading update. The successful launch of PCF Bank's retail deposit products has coincided with a number of new business initiatives, utilising the cheaper cost of funds, to expand the Bank's addressable lending market. Our success in delivering these projects is testament to the team at PCF and provides momentum as we enter the new financial year and continue our strategy of scaling the portfolio and generating profitable and sustainable growth."

"There is excellent potential for growth in our proven, existing markets in the short and medium term; and over the next three years, asset diversification will provide greater acceleration in portfolio growth."

"This has been a year of great achievement, marked by our arrival as a new entrant bank and we look forward to reporting our full year results in December."

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For further information, please contact:

 
 PCF Group                                Tel: +44 (0) 
  Scott Maybury, Chief Executive           20 7222 2426 
  Officer 
  Robert Murray, Managing Director 
  David Bull, Finance Director 
 Tavistock Communications                 Tel: +44 (0) 
  Jos Simson / Niall Walsh                 20 7920 3150 
 Panmure Gordon (UK) Limited              Tel: +44 (0) 
  Atholl Tweedie / Adam James              20 7886 2500 
  - Corporate Finance 
  Charles Leigh-Pemberton - Corporate 
  Broking 
 Stockdale Securities                     Tel: +44 (0) 
  Robert Finlay / Richard Johnson          20 7601 6100 
  - Corporate Finance 
  Henry Willcocks - Corporate 
  Broking 
 

About PCF Group plc (www.pcf.bank)

Established in 1994, PCF Group plc is the AIM-quoted parent of the specialist bank, PCF Bank Limited. With the advent of the banking operation the Group now has the capability to increase its lending portfolio significantly, with target portfolio sizes of GBP350m in 2020 and GBP750m in 2022. The Group will retain its focus on portfolio quality, and has the capability to lend increasingly to prime segments of the finance market.

PCF Bank will offer retail savings products for individuals and will then deploy those funds through its two lending divisions:

   --      Consumer Finance which provides finance for motor vehicles to consumers; and 
   --      Business Finance which provides finance for vehicles, plant and equipment to SMEs. 

The Group has a track record of strong financial performance and an efficient and scalable business model, with significant room to grow. Utilising its technologically advanced platform, the Bank will provide both depositors and borrowers with a high level of service and a straightforward, simple range of products tailored to suit their needs.

For media enquiries please contact [e-mail]

This information is provided by RNS

The company news service from the London Stock Exchange

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September 27, 2017 02:00 ET (06:00 GMT)