Trading Statement

24 Jun 2005 07:00

Private & Commercial Fin Group Plc24 June 2005 PRIVATE & COMMERCIAL FINANCE GROUP PLC ("PCFG" or "the Company") TRADING STATEMENT 24th June 2005 The Directors of PCFG are pleased to provide an update on current year trading: • The Business Finance Division has continued to grow strongly with sales volumes so far this year setting new records in three consecutive months. Volumes are more than double those in the same period in 2004 whilst credit quality and margins have been maintained. • In line with general market conditions in consumer finance, and partly as a result of the Company's determination to maintain margins, growth of the Consumer Finance Division's portfolio has been more subdued. Volumes are nonetheless 11% higher than those in the same period in 2004. • Karma Cars' Watford site was closed on 13th May 2005. The stock has been sold and Joint Agents have been instructed to dispose of the lease of the site. It is expected that the write-off in the group accounts attributable to the closure will be approximately £500,000, which is as anticipated when the decision to close the business was announced on 29th April 2005. • Results for the six months ending 30 June 2005 will include the trading losses attributable to Karma Cars up to 13th May as well as the write-off associated with the closure of the business. Tony Nelson, Chief Executive of PCFG said: "The closure of Karma Cars draws aline under that venture and makes our future performance from our traditionalcore businesses far more predictable. Our business equipment finance divisionhas enjoyed strong organic growth and the motor finance division is now offeringa Personal Contract Purchase ("PCP") product, which offers higher margins thanthe traditional instalment credit product, to boost sales. The board isconfident that it has taken the right steps to rebuild shareholder value goingforward." This information is provided by RNS The company news service from the London Stock Exchange