8 Mar 2012 07:30
PCF.L/Index: AIM/Sector: Speciality & other finance
8 March 2012
PRIVATE & COMMERCIAL FINANCE GROUP PLC
SALE OF LEASING RECEIVABLES
The Directors of Private & Commercial Finance Group ("PCFG" or the "Company") are pleased to announce that the Company's wholly-owned subsidiary, PCF Equipment Leasing Limited, has agreed to sell its portfolio of leasing receivables to Aldermore Bank plc. The sale will complete on 12 March 2012.
The consideration for the sale is £11.5 million which represents a premium over the book value of the receivables. The consideration will be received in cash and the proceeds of the sale will be used to repay senior debt, reduce the equity gearing ratio and further strengthen the Company's balance sheet.
The sale of the receivables accelerates a profit that would have otherwise been attributed to future accounting periods. A profit, net of fees, of £151,500 arising from the sale will be recognised in the current financial year and will result in profits exceeding market expectation. The sale also benefits the Company by crystallising a deferred tax asset in PCF Equipment Leasing Limited. The Company was advised on the transaction by FTI Financial Services.
Scott Maybury, CEO of PCFG commented:"This transaction, which boosts our profitability in the current year, is another step in our strategy to extract value from all areas of the balance sheet and to further enhance the rate of return on assets employed. The Company will continue to operate in the sector and will grow a similar portfolio of high yielding leasing receivables which will be funded by the new and increased facilities announced in our recent Interim Accounts."
**ENDS**
Enquiries:
Private & Commercial Finance Group plc | 020 7222 2426 |
Scott Maybury www.pcfg.co.uk
St Brides Media and Finance Limited Felicity Edwards |
020 7236 1177
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Westhouse Securities Limited | 020 7601 6100 |
Tim Feather |
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Notes to Editors:
Private & Commercial Finance Group plc, which is authorised and regulated by the FSA, is an AIM-quoted finance house.
PCFG has two main operating divisions: Consumer Finance - which provides a range of specially tailored finance products for consumers and Business Finance - which finances vehicles, plant and equipment for SMEs. The Group has a highly efficient and scalable business model, utilising its specially developed internet-based proposal system to service national networks of brokers. This allows it to handle a large volume of proposals extremely quickly with proportionately low costs.