LONDON (Alliance News) - Private & Commercial Finance Group PLC Tuesday said it wants to restructure its balance sheet in a move to enable the payment of a dividend to shareholders.
News of the plans for a dividend payment came as the company, which provides money to individuals and businesses looking to finance vehicles, plant or equipment, said that pretax profit increased to GBP2.1 million in the year ended March 31, compared with GBP1.2 million in the prior year, as revenue increased by 6.2% to GBP45.3 million, and administrative expenses fell by 3.6% to GBP6.7 million.
"Margins and profitability have increased even more significantly as a result of further improvements in portfolio quality and the positive effect of our overall operational gearing," Chief Executive Scott Maybury said in a statement.
Chairman David Anthony said: "We have delivered excellent profitability in the year as the result of a growing portfolio combined with further gains in portfolio quality and a continued focus on margin and costs."
Anthony said that March was the company's best month for originations in nearly seven years, while the company's new financial year began "extremely well".
The group is continuing its efforts to a secure a UK banking licence, a move which would allow it to attract deposits from retail customers, which tend to cost less than debt funding.
The business plan has been submitted to regulators but there have been delays, the chairman said.
"We have invested considerable time researching a suitable target operating model and selecting suitable IT systems and remain committed to achieving this objective, albeit behind our original schedule," Anthony said.
"This strategy will initially incur costs but will transform the business, supporting our long-term strategy to grow beyond the constraints of wholesale funding and into a substantial financial services group," Anthony added.
In addition, Finance Director Zane Kerse is leaving the group to pursue "other interests" in a move that will eventually take him home to New Zealand.
"This advance notice has allowed the group to secure an excellent candidate as his proposed replacement and will also allow for a period of handover. A further announcement will be made in due course," Anthony said.
Shares in Private & Commercial Finance shares were up 10% at 18.20 pence on Tuesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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