PCF.L Regulatory News (PCF)

27 Mar 2007 07:00

Private & Commercial Fin Group Plc27 March 2007 Private & Commercial Finance Group Plc Ticker: PCF / Index: AIM / Sector: Speciality & other finance 27th March 2007 Private & Commercial Finance Group plc ('PCFG' or 'the Group') Interim Results for the 12 months ended 31 December 2006 Private & Commercial Finance Group Plc, the AIM-quoted finance house, is pleasedto announce its interim results for the first 12 months of the current 15 monthaccounting period. Overview •Record new business volumes •Sales in 2006 grew by 23% to £56 million •Virtual car showroom, www.pcfshowroom.co.uk, generating increasing sales with motor insurance now added as an additional fee-earning product •Business Finance Division achieving higher growth - now offering a wider range of finance •Consumer Finance Division to add home improvement loans, including finance for micro-generation and other energy saving products to its range •New profit centres: Credit Control and Corporate Finance CHIEF EXECUTIVE'S REPORT Our performance was strong in 2006 especially in a UK market sector which,according to Finance & Leasing Association statistics, experienced a 10%reduction. Our virtual car showroom, www.pcfshowroom.co.uk, has a growing sales pipeline,all of which, so far, have been made with finance provided by us. The demand ismainly generated from our customer base in line with our strategy of wideningour product range so that we have more to offer our customers by way ofcross-selling. We have a customer database of 30,000 current and past customersand intend to maximise its value. We are putting the finishing touches to the consolidation of the credit controloperations of both our operating divisions and moving to the next stage ofdevelopment, which is to promote the services of our professional andexperienced staff in the areas of managing portfolios of finance receivables andwider debt collection. The effectiveness of the team managing our ConsumerFinance portfolio is amply demonstrated by the fact that in 2006 the arrearspercentage improved by over 25%, although in part this was due to portfoliogrowth and improved credit quality. The same stringent controls and provisioningpolicies will now be applied to the Business Finance portfolio. A further initiative is the creation of a Corporate Finance Department chargedwith generating fee income and enhancing profitability through structuring andpackaging larger transactions. We have successfully implemented the latest batch of rules and regulations toaffect our sector, the Consumer Credit Act 2006. We welcome the strengthening ofregulations in the consumer finance field not only because it creates a morelevel playing field but also because it creates barriers to entry to the sectorand increases the value of our franchise. As previously reported, we changed our accounting year-end from 31 December to31 March in order to save audit costs, so we are currently in a 15 monthaccounting period. However in order to comply with AIM Rules we have to produceinterim accounts every 6 months and those for the period of 12 months ended 31December 2006 are attached. These are the last accounts which will be preparedon the old accounting basis because the next set, covering the 15 month periodending 31 March 2007, will be prepared after the adoption of InternationalFinancial Reporting Standards. Sales in the first two months of 2007 were in line with the comparable period in2006. We believe consumer demand was subdued as a result of the recent interestrate increases by the Bank of England, however demand has picked up strongly inMarch. With the new initiatives under way, designed to enhance earnings withoutrequiring increases of capital and a growing portfolio we are increasing ourpace and forward momentum. For further information please visit www.pcfg.co.uk or contact: Tony Nelson PCFG plc Tel: 020 7222 2426 Isabel Crossley St Brides Media and Finance Ltd Tel: 020 7242 4477Felicity Edwards Tim Feather Hanson Westhouse Limited Tel: 0113 246 2610 Notes to Editors Private & Commercial Finance Group plc, which is authorised and regulated by theFSA, is an AIM-quoted finance house. It has two main operating divisions:Consumer Finance, which provides a growing range of specially tailored financeproducts for consumers, and Business Finance, which finances vehicles, plant andequipment for SMEs. The Group has a highly efficient business model, utilisingits specially developed internet-based proposal system to service a nationalnetwork of brokers. This allows it to handle a large volume of proposalsextremely quickly with low scaleable costs. Additionally through a joint venturewith a supplier PCFG offers a range of attractively-priced cars on financethrough an in-house website, www.pcfshowroom.co.uk. Interim Accounts Group Profit and Loss Account------------------------ ----------- --- --------- --- ---------for the twelve months ended 31December 2006 ------------------------ ----------- --- --------- --- --------- Twelve months Six months to Year ended 31 to 30 June December 2005 31 December 2006 audited 2006 unaudited unaudited £000's £000's £000's ------------------------ ----------- --- --------- --- ---------Turnover ----------- --------- ---------Continuingoperations 38,876 18,643 32,684Discontinuedoperations - - 3,064 ----------- --------- ---------Group turnover 38,876 18,643 35,748 Cost of sales (25,598) (12,304) (25,442) Gross profit 13,278 6,339 10,306 Administrativeexpenses (8,365) (4,167) (10,452)------------------------ ----------- --- --------- --- ---------Operating profit/(loss) ----------- --------- ---------Continuingoperations 4,935 2,194 1,584Discontinuedoperations (22) (22) (1,730) ----------- --------- ---------Groupoperatingprofit/(loss) 4,913 2,172 (146) Interestreceivable 1 - 2Interestpayable (4,871) (2,228) (3,631)------------------------ -----------Profit/(loss)on ordinaryactivities 43 (56) (3,775)before taxation Tax(charge)/credit onprofit/(loss)on (19) 10 619ordinary activities-------------------------- -------- --- --------- --- ---------Profit/(loss)on ordinaryactivities 24 (46) (3,156)after taxation Dividends - - --------------------------- -------- --- --------- --- ---------Retainedprofit/(loss) 24 (46) (3,156)-------------------------- -------- --- --------- --- --------- Profit/(loss)per 25pordinary share- basic 0.0p 0.0p (19.4p) -------------------------- -------- --- --------- --- --------- Interim Accounts Group Balance Sheet-------------------------------- ---------- -------- ---------at 31 December 2006 31 December 30 June Year ended 2006 unaudited 2006 31 December £000's 2005 unaudited audited £000's £000's -------------------------------- ---------- -------- ---------Fixed assets Intangible assets 356 377 397Tangible assets 631 657 820-------------------------------- ---------- -------- --------- 987 1,034 1,217 -------------------------------- ---------- -------- ---------Current assets Debtors: ---------- -------- ---------Amounts falling due within oneyear 31,320 20,599 25,061Amounts falling due after oneyear 54,109 59,085 40,806 ---------- -------- --------- 85,429 79,684 65,867Cash at bank and in hand - - -Deferred taxation 2,307 2,307 2,307-------------------------------- ---------- -------- --------- 87,736 81,991 68,174Creditors: amounts falling duewithin one year 914 3,136 4,551-------------------------------- ---------- -------- --------- Net current assets 86,822 78,855 63,623-------------------------------- ---------- -------- --------- Total assets less currentliabilities 87,809 79,889 64,840-------------------------------- ---------- -------- ---------Creditors: amounts falling dueafter more than one year 83,744 76,296 61,893-------------------------------- ---------- -------- ---------Total assets less liabilities 4,065 3,593 2,947-------------------------------- ---------- -------- --------- Capital and reserves Called-up share capital 4,970 4,943 4,749Share premium account 3,347 2,972 2,474Capital reserve 74 74 74Own shares (243) (243) (243)Profit and loss account (4,083) (4,153) (4,107)-------------------------------- ---------- -------- ---------Equity shareholders' funds 4,065 3,593 2,947-------------------------------- ---------- -------- --------- Interim Accounts Group Statement of Cash Flows-------------------------------- ---------- --------- ---------for the twelve months ended 31December 2006 Twelve months Six months Year ended 31 December ended ended 2006 30 June 31 December 2006 2005 unaudited unaudited audited £000's £000's £000's -------------------------------- ---------- --------- ---------Net cash outflow from operations (16,828) (12,752) (11,008)-------------------------------- ---------- --------- --------- (16,828) (12,752) (11,008) -------------------------------- ---------- --------- --------- Net cash outflow from returns oninvestmentsand servicing of financeInterest paid (5,035) (2,481) (3,309)Interest received 1 - 2 -------------------------------- ---------- --------- --------- (5,034) (2,481) (3,307) -------------------------------- ---------- --------- ---------Tax received 255 123 20-------------------------------- ---------- --------- ---------Capital expenditure and financialinvestmentPayments to acquire tangible fixedassets (122) (18) (438)Receipts from sales of tangiblefixed assets 62 62 11 -------------------------------- ---------- --------- ---------Net cash (outflow)/inflow fromcapital expenditure (60) 44 (427)and financial investment -------------------------------- ---------- --------- ---------Net cash outflow from equity dividends - - - -------------------------------- ---------- --------- --------- FinancingProceeds from issue of ordinaryshare capital 1094 692 950Proceeds from borrowings 21,851 14,403 15,232Repayments of borrowings (489) (489) (1,796) -------------------------------- ---------- --------- --------- Increase/(decrease) in cash 789 (460) (336)-------------------------------- ---------- --------- --------- Notes 1. There are no recognised gains or losses other than the profits for theperiod. 2. The interim results are unaudited and do not constitute statutoryaccounts as defined by section 240 of the Companies Act 1985. The comparativefigures for the financial year ended 31 December 2005 have been extracted fromthe statutory accounts of the Group for that financial year and have beenreported 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 undersection 237(2) or (3) of the Companies Act 1985. 3. The interim results have been prepared on the basis of the accountingpolicies set out in the Annual Report and Accounts for the year ended 31December 2005. 4. Copies can be obtained from the Secretary of the Company at 39 VictoriaStreet, London SW1H 0EU 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