Pcf Share Discussion Threads

[hopespr1ngseternal] 30/9/2022 17:07

Graham: what are you suggesting that remaining ‘indifferent’ shareholders do? Sell for 2p without waiting to hear what the company has to say?

[graham1ty] 30/9/2022 16:37

Three trades today. The indifference is unbelievable. I assume any remaining shareholders have long since written this off…..

[cc2014] 30/9/2022 09:03

Is it worth 0p or 10p?

I'd say it's worth zero or maybe a penny.

The directors only really have two choices set against a background of struggling consumers and likely increased impairments which is to either

a) keep plodding along, cut costs and try and get the loss to zero over a period of time, hoping that the losses whilst they get them to zero aren't large or

b) put PCF into a structured wind-down because the business plan doesn't show a long term profitability.

I'm thinking b might be quite likely and may have been on their minds for some time as the lack of savings products for new customers suggests new business coming in is less than old business being completed.

[graham1ty] 30/9/2022 07:24

Not even a holding statement.

As for the whole of the last year, shareholders have no idea if this is worth zero or 10p.

One has to assume……zero.

I have hardly ever come across such mind boggling value destruction

[dandigirl] 29/9/2022 18:05

Not sure you are totally right maverick. The savvy will always look for the best interest payers supported by the FSCS guarantee up to £85k. What does it say about someone who leaves funds in a big bank paying next to nothing when there are easy access accounts available from several much smaller institutions. I would have no hesitation in placing funds with PCF up to £85k if they are willing to pay a competitive rate. There are many such accounts paying between 1.8 and 2.1. PCF are looking only for notice money or 3 years fixed at rates that I consider are uncompetitive.

My concern is that the current board does not strike me as made up with the sort of people to take PCF forward.

[goddamitmaverick] 29/9/2022 17:45

Small banks with Term Funding Scheme (TFS) borrowings have an issue . That cheap funding will have to be replaced by much costlier deposits or wholesale borrowing.
Smaller banks also have less cheap money and rely more on fixed term savings which have become more competitive and relatively more expensive. All this leans on net interest margins. On top of all that savers migrate to bigger better known names when they are fearful and also the cost of living squeeze will lead to people reducing savings or keeping them on easy access not locking away for longer . The easy money margins are gone for now .

[dandigirl] 29/9/2022 15:35

Great news. Now let’s get on with the RI.

[hopespr1ngseternal] 29/9/2022 15:03

Will we hear from PCF?

[cc2014] 29/9/2022 14:24

So sorry to hear. What a mess

I think the game was up after the chancellor screwed up the bond markets and pushed up the UK's long term interest rates. Any deal just became too uncertain.

[graham1ty] 29/9/2022 13:24

So, Castle not even prepared to pay a few pence…..what horrors have they found ?

Unless Somers is prepared to put in a massive cash injection, this is the end of PCF

Damn

[cc2014] 29/9/2022 12:35

The RNS says this

"Commercial terms on an all share offer with a cash alternative for minority shareholders have been agreed subject to the satisfaction of (or, where relevant, waiver of) certain pre-conditions inter alia completion of due diligence"

So, what I think this means is that the two parties have agreed the basis of the offer in writing, but it is not 100% clear to me that this includes the price.

I'd appreciate thoughts on this?


Because if it does include the price, surely PCF have to inform the market. It would be so price sensitive they would need to declare it surely?


I am reading between the lines but another month to do due diligence sounds like a delaying tactic to me. It cannot take that long surely, unless PCF accounts, ledgers, loan agreements are all done on pieces of paper and an abacas?

[dandigirl] 29/9/2022 11:00

I shall write to the FCA in due course to ask them to conduct an enquiry into the happenings at PCF over the last 2 years.

[dandigirl] 28/9/2022 08:40

Just to add that there was no point in asking questions at meetings. Stran always gave some excuse or other for not being in a position to respond with anything meaningful. Suspect he and Richardson will be gone very soon.

[dandigirl] 28/9/2022 08:37

Graham, thanks. Surely this has to be worth more than 3p a share?

PCF injected at 5p. Last NAV from Richardson was 16.5p, I think.

Somewhere between these figures?

We have averaged down to below 10p.

Share our pain or pleasure when the offer price is known. :)

[graham1ty] 28/9/2022 08:08

Dandi, judging by tiny, tiny volumes every day, most people have given up, or written this off as a zero. There have been no speculators, or rampers. At the various meetings there have been next to no questions, and few attendees. Everyone has given up.

So, it would nice to think that someone, somewhere, sees potential value in the supposed offer. However, judging by the last year ( and the six months down at about 2p) no one is going to take a big punt on a reasonable offer from Castle

[dandigirl] 28/9/2022 07:51

Price on opening should be interesting.

[graham1ty] 27/9/2022 18:03

How much more due diligence do they need…….

[hopespr1ngseternal] 27/9/2022 17:09

Further one month extension to enable due diligence to be completed.Commercial terms agreed for all share takeover with cash alternative for minority shareholders.

[goddamitmaverick] 27/9/2022 14:13

I doubt CT has the stomach for a deal in this market, but I think there will be others who might if the price is sensible. The constant extensions undermine the principle of make an offer or walk away .

[cc2014] 27/9/2022 13:39

It's hard to believe anyone would still be doing any work on this.

However, on the other hand someone has bought a few shares this morning, which seems a very strange thing to do today given the pessism on interest rates.

[dandigirl] 27/9/2022 08:37

So, it appears it was put up or shut up.

[cc2014] 21/9/2022 10:00

I sort of agree Graham but I'm not it's clear to me the business model was ever great and I say that as an ex-shareholder who believed in what I heard from Scott and had poured over the numbers.

For sure, if you ignore the impairments it was profitable. I think they weren't booking enough impairments though in a timely manner and thus they flowed through later in big lumps. I think the impairments are probably kitchen-sinked and could now be more than they need to be.

I'm also not sure the cost base was ever right to take on the costs of running a bank. I agree it shouldn't be the extra £10m or whatever, but ticking along underneath it should have been a bit, say £2m pulled out of thin air higher. The £2m would/should have avoided the mess PCF has become.

What I can see is that regardless of well or badly PCF was being run and whether the cost base was or is correct or not, others are making it work and therefore PCF should be able to do so going forward. Albeit, it's my view the impairment number for all banks is going to start looking problematic for the next couple of years, which is absolutely the worst timing for PCF.


What I hope for all shareholders is that the new non-exec is pragmatic and able to help forge a path where the £10m of overhead can be reduced. That's what's needed.