15 Feb 2022 07:00
15 February 2022
PCF Group plc
("PCF", the "Company" or the "Group")
Update on publishing of 2021 Accounts, Interims and Trading update
Update on publishing of 2021 Accounts / Interims for the period 31 March 2022
The production of the financial statements and audit process for the year ended 30 September 2021 is in progress with the Group's new auditors and is receiving priority focus. The Company anticipates the publication of its 2021 audited results during the last week of May 2022.
As 31 March 2022 is the last day permitted for publication of those audited results under the AIM Rules for Companies, the Company's shares will be temporarily suspended with effect from 7.30am on 1 April 2022 until the publication of the 2021 audited results. For logistical reasons it is not possible to complete the financial accounts and the required audit processes prior to 31 March 2022.
The Company also expects to publish its interim results for the six months ended 31 March 2022 prior to the end of June 2022 to facilitate a return to a normal cycle of reporting results in line with AIM Regulations.
Trading update
Over the course of the 2021 full financial year, new business origination totalled £155 million, a 43% reduction compared with 2020 (£272 million). Origination was lower across all segments of the portfolio as the Group managed new business volumes in a conservative and prudent manner taking account of the position of the Group but was notably lower in its Business Finance Division (BFD) and Azule, both of which continued to see demand significantly impacted by the pandemic and the supply of finance under various government pandemic support schemes.
As a result, the Group's gross loan book reduced from £446 million as at 31 March 2021 to approximately £379 million as at 30 September 2021. Whilst the loan book as at 30 September 2021 was lower, the average loan book over the 2021 financial year was broadly stable relative to 2020.
In the interim financial statements for the period to 31 March 2021, PCF indicated that as a result of its ongoing remediation and enhancement activities profitability would be negatively impacted in the near-term. Consequentially, the Group expects it will generate a loss before tax for the 2021 full financial year. Notably this includes the elevated expenses arising from the investigative and remediation activities previously announced.
The Group has started its drive back to normalised origination levels to mitigate this reduction in receivables and start to rebuild the overall size of its loan book. Loan origination for the first quarter of the current 2022 financial year to 31 December 2021 was £19 million (2020: £49million). In the second quarter to 31 March 2022, the Group is experiencing strong approval levels and expects to double the first quarter origination level.
The Board also remains focused on preparing the business to execute against its growth strategy which will be underpinned by a data-driven and digitalised approach to lending and loan origination. Details of the future plans will be outlined in the Annual Report & Financial Statements 2021.
ENDS
For further information, please visit https://pcf.bank/ or contact:
PCF Group (via Tavistock Communications) Garry Stran, Interim Chief Executive Officer Caroline Richardson, Chief Financial Officer
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| Tel: +44 (0) 20 7920 3150 |
Tavistock Communications Simon Hudson / Tim Pearson
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| Tel: +44 (0) 20 7920 3150 |
Peel Hunt (Nominated Advisor and Joint Broker) Andrew Buchanan / Rishi Shah / Sam Milford |
| Tel: +44 (0) 20 7418 8900 |
Shore Capital (Joint Broker) Henry Willcocks / Guy Wiehahn |
| Tel: +44 (0) 20 7408 4080 |
About PCF Group plc (www.pcf.bank)
Established in 1994, PCF Group plc is the AIM-quoted parent of the specialist bank, PCF Bank Limited. Since commencing operations as a bank in 2017. The Group continues to focus on portfolio quality and lending to the prime segments of its existing markets. The Group will continue to identify opportunities to diversify its lending products and asset classes by setting up new organic operations or through acquisition.
PCF Bank currently offers retail savings products for individuals and then deploys those funds through its four lending divisions:
• Business asset finance which provides finance for vehicles, plant and equipment to SMEs;
• Consumer motor finance which provides finance for motor vehicles to consumers;
• Azule which brokers finance to the broadcast and media industry; and
• Property bridging finance which provides loans to companies and sole traders investing in residential and commercial property.