LONDON (Alliance News) - Private & Commercial Finance Group PLC Wednesday said that it expects results for its recently-ended financial year to be ahead of market expectations.
The company, which finances acquisitions of vehicles, plant and equipment, said that its profitability, as well as the growth and quality of its portfolio, outperformed its own expectations in its last financial year.
Private & Commercial Finance said that net business originations amounted to GBP56.0 million in the year ended March 31, compared with GBP50.8 million in the prior year. The company said it "achieved" its 2% return on average assets. It also said that the provisioning charge taken for loan losses has "continued" to fall.
Chief Executive Scott Maybury said that the group expects "further progress in the current financial year.
"The growth and performance of our receivables has delivered the initial target we set ourselves for return on assets, and our results have exceeded market expectations. In addition, throughout the year we have been successful in increasing debt facility headroom which provides the group with a stronger funding position moving forward than we have seen in previous years," Maybury said.
In addition, Private & Commercial Finance expects to present its business plan to regulators in the coming month as it continues work on its application for a banking licence.
In the meantime, it has GBP33 million of committed financing under a facility provided by banking lenders, including the GBP10 million facility from UK government-backed British Business Bank reported earlier this month.
The company will report its full year results on June 9.
Private & Commercial Finance shares were up 13% at 17.50 pence on Wednesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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