Simon Thompson has tipped this today with a 35p end of year target price. Private & Commercial's shares are well worth buying on a bid-offer spread of 24p-24.5p ahead of the full-year results on Thursday, 9 June 2016. My year-end target price is 35p, the equivalent of 2.2 times my estimate of end-September 2016 book value and equating to a prospective PE ratio of 16. For good measure, analysts at Stockdale Securities predict a maiden dividend per share of 0.1p to be declared in those results, rising to 0.3p in the current year, implying a forward dividend yield of 1.3 per cent. Buy
Finance house Private & Commercial Finance Group plc (LON:PCF) said performance in the 12 month period just ended will be slightly ahead of expectations. Speaking to Proactive Investors, chief executive Scott Maybury says the trading statement today shows “a further outperform” of upgraded expectations outlined last December. New business originations were 13% higher at £63mln than the £56mln the year before, and Maybury adds that he is pleased the company has not “chased growth” and maintained its prudent underwriting standards despite the opportunity to better its performance by lowering standards.
Read Panmure's and Stockdale’s notes on Private And Commercial Finance (PCF), out this morning, by visiting https://www.research-tree.com/companies/uk/investment_platforms_%26_services/private_%26_commercial_fin_grp … Panmure says “We last upgraded our estimates in December and once again the company is trading ahead. We will review our estimates in June when a full update on the progress on the banking license application will be provided. This is a transformational year for the company… We are forecasting 17% PBT growth for the year starting to March 17. A banking license is likely to transform the growth prospects for the company…” Stockdale says “PCFG has announced that it will again beat (“modestly”) market expectations for the 12-month period to end March 2016. Accordingly, we are increasing our adj. PBT forecast to £3.5m (from £3.4m) for this period. With news that the banking licence application is progressing steadily and the £112m portfolio of receivables continuing to be of good quality we remain positive on PCFG..."
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