PCF Group plc, the AIM-listed specialist bank, recently announced its results for the six months ending 31 March 2018. It reports that trading is strong, results are in line with market expectations, and the strategy for the business is on track.
Financial highlights include a reported profit before tax up 20pct to £2.1 million (2017: £1.7 million), notwithstanding the cost of new banking infrastructure and resource. Operating income is up 32pct to £6.7 million (2017: £5.1 million), with earnings per share maintained at 0.8p (2017: 0.8p). After-tax return on equity has been reduced to 8.7pct (2017: 10.5pct) reflecting the increased capital base and investment in the banking model
In eight months as a bank, PCF Group customer deposits have reached £108 million (2017: Nil), and PCF was awarded 2018 Best New Provider by independent savings specialist, Savings Champion. The six-month results also show portfolio growth of 40pct to £179 million (2017: £128 million), heading towards a £350 million portfolio target.
Boosted by the lower cost of funding, PCF Group has nearly doubled its new business originations, up 97pct to £69 million (2017: £35 million). Growth in unearned finance has leaped to £39 million (2017: £28 million).
CEO Scott Maybury commented, “This has been a rewarding period. We set ourselves ambitious targets for our first year as a bank and have made excellent progress towards achieving those objectives. We came into this financial year with a significantly higher cost base but have still delivered good growth in profitability. We expect this to accelerate through operational gearing, as we scale our portfolio and continue to put the new capital and infrastructure to work.”
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