PCF.L Regulatory News (PCF)

13 Sep 2005 07:30

Private & Commercial Fin Group Plc13 September 2005 Private & Commercial Finance Group Plc ('PCFG' or 'the Group') PCF.L / Index: AIM / Sector: Speciality & other finance PRIVATE & COMMERCIAL FINANCE GROUP PLC INTERIM RESULTS Private & Commercial Finance Group Plc, the AIM quoted finance house, announcesits results for the six months ended 30 June 2005. Overview: • Business equipment finance division enjoying strong growth • Consumer finance division increasing sales despite strong competition • Significant loss for the period, principally due to trading losses and closure costs of Karma Cars • Closure of Karma Cars refocuses the Group on core business • Prospects underpinned by refinancing through share placing • Current trading strong with sales over 20% ahead in third quarter compared to the same period last year Chairman's Statement The Group is concentrating its resources on developing its core activities of business and consumer finance. Both divisions are performing well with the business side in particular generating strong underlying growth. With the closure of the motor retailing venture Karma Cars behind us (it only remains for us to dispose of the leasehold premises in Watford), the rebuilding of the Group is now well underway. We are currently accelerating the growth of the business finance division and concentrating on the profitable niches and products available through the consumer finance division which has been experiencing stronger growth in recent months despite intense competition. We are constantly bearing down on costs and have recently achieved some notable successes. Results for the six months ended 30 June 2005 are in line with expectations. The net loss of £2,036,000 (2004: loss £482,000) is principally due to the trading losses and subsequent closure costs of Karma Cars. On 1 August 2005 we announced that we had raised £950,000 through the placing of 3,800,000 shares with Aberdeen Holdings Limited (formerly called Fincorp Investments Limited). This brings its holding in the Group to 23%. Theadditional capital provides a solid platform for the continuing growth of our business finance division, as well as a strong vote of confidence by Aberdeen Holdings in the future prospects of the Group. Following this investment, Faisal Al Yousef has been appointed to the board as anon-executive director. It is not the board's intention to recommend the payment of an interim dividend. We are finally seeing the end of an exceptionally difficult period. Whilst full recovery will not be achieved overnight, we are intent on restoring profitable year on year growth. Current trading is encouraging and there has been aresumption of strong organic growth reflected in a rise of over 20% in sales during the third quarter. Michael CummingChairman 13 September 2005 Group Profit and Loss Account--------------------------------------------------------------------------------for the six months ended30 June 2005-------------------------------------------------------------------------------- Half year to Half year to Year ended 30 June 30 June 31 December 2005 2004 2004 unaudited unaudited audited £000's £000's £000's--------------------------------------------------------------------------------Turnover ------- ------- ------- Continuing operations 15,716 15,068 30,180Discontinued operations 1,907 - 944 ------- ------- -------Group turnover 17,623 15,068 31,124 Cost of sales (12,699) (10,204) (21,081) Gross profit 4,924 4,864 10,043 Administrative expenses (5,458) (4,063) (9,679)--------------------------------------------------------------------------------Operating profit ------- ------- -------Continuing operations 1,043 801 1,186Discontinued operations (1,577) - (822) ------- ------- -------Group operating profit (534) 801 364Interest receivable 1 1 4Interest payable (1,688) (1,533) (3,068)-------------------------------------------------------------------------------- Loss on ordinary activities before taxation (2,221) (731) (2,700) Tax credit/(charge) on(loss)/profit on ordinary activities 185 249 493--------------------------------------------------------------------------------Loss on ordinary activities after taxation (2,036) (482) (2,207) Dividends - (38) (39)--------------------------------------------------------------------------------Retained loss for the year (2,036) (520) (2,246)-------------------------------------------------------------------------------- Loss per 25p ordinary share- basic (13.4p) (3.2p) (15.0p)-------------------------------------------------------------------------------- Group Balance Sheet--------------------------------------------------------------------------------at 30 June 2005 30 June 30 June 31 December 2005 2004 2004 unaudited unaudited audited £000's £000's £000's -------------------------------------------------------------------------------- Fixed assets Intangible assets 398 480 438Tangible assets 988 770 1,438-------------------------------------------------------------------------------- 1,386 1,250 1,876--------------------------------------------------------------------------------Current assets Stocks - - 1,325Debtors: ------- ------- ------- Amounts falling due within one year 23,588 22,138 21,318Amounts falling due after one year 35,178 29,525 33,071 ------- ------- ------- 58,766 51,663 54,389Cash at bank and in hand - 2,041 1-------------------------------------------------------------------------------- 58,766 53,704 55,715Creditors: amounts falling duewithin one year 5,133 4,191 5,055-------------------------------------------------------------------------------- Net current assets 53,633 49,513 50,660-------------------------------------------------------------------------------- Total assets less currentliabilities 55,019 50,763 52,536-------------------------------------------------------------------------------- Creditors: amounts falling dueafter more than one year 51,902 43,905 47,383--------------------------------------------------------------------------------Total assets less liabilities 3,117 6,858 5,153-------------------------------------------------------------------------------- Capital and reserves Called-up share capital 3,799 3,766 3,799Share premium account 2,474 2,412 2,474Capital reserve 74 74 74Own shares (243) (169) (243)Profit and loss account (2,987) 775 (951)--------------------------------------------------------------------------------Equity shareholders' funds 3,117 6,858 5,153-------------------------------------------------------------------------------- Group Statement of Cash Flows--------------------------------------------------------------------------------for the six months ended 30 June 2004 Half year to Year ended 30 June 31 December 2005 2004 unaudited audited £000's £000's-------------------------------------------------------------------------------- Net cash inflow from operations (2,410) 4,176-------------------------------------------------------------------------------- (2,410) 4,176-------------------------------------------------------------------------------- Net cash outflow from returns on investmentsand servicing of finance Interest paid (1,614) (2,988)Interest received 1 4-------------------------------------------------------------------------------- (1,613) (2,984)--------------------------------------------------------------------------------Tax paid (64) (103)--------------------------------------------------------------------------------Capital expenditure and financial investment Payments to acquire tangible fixed assets (232) (1,344)Receipts from sales of tangible fixed assets - 209--------------------------------------------------------------------------------Net cash (outflow)/inflow from capital expenditure and financial investment (232) (1,135)--------------------------------------------------------------------------------Net cash outflow from equity dividends - (87)-------------------------------------------------------------------------------- FinancingProceeds from issue of ordinary share capital - -Proceeds from issue of convertible loan notes - - Payments to acquire ordinary shares in Employee Share Option plan - (74)Proceeds from borrowings 3,960 3,872Repayments of borrowings (501) (5,266)--------------------------------------------------------------------------------(Decrease)/increase in cash (860) (1,601)-------------------------------------------------------------------------------- Notes 1. There are no recognised gains or losses other than the profits for the year. 2. The interim results are unaudited and do not constitute statutory accounts as defined by section 240 of the Companies Act 1985. The comparative figures for the financial year ended 31 December 2004 have been extracted from the statutory accounts of the Group for that financial year and have been reported on by the Group's auditor and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. 3. The interim results have been prepared on the basis of the accounting policies set out in the Annual Report and Accounts for the year ended 31 December 2004. 4. A copy of the Interim Report is being sent to all shareholders and convertible loan noteholders. Further copies can be obtained from the Secretary of the Company at 15 Great College Street, Westminster, London SW1P 3RX or can be downloaded from our website, www.pcfg.co.uk. This information is provided by RNS The company news service from the London Stock Exchange