Private & Commercial Finance Group plc Preliminary Results – Strong gains in profitability reflecting portfolio quality

Private & Commercial Finance Group plc Preliminary Results – Strong gains in profitability reflecting portfolio quality

Private & Commercial Finance, the AIM-quoted finance house, today announces its preliminary results for the year ended 31 March 2015.

Financial Highlights:

  • Profit before tax up 69% to £2.1 million (2014: £1.25 million)
  • Profit after tax up 120% to £1.6 million (2014: £0.7 million)
  • Basic earnings per share up 114% to 3.0p (2014: 1.4p)
  • Fully diluted earnings per share up 63% to 1.3p (2014: 0.8p)
  • Return on average assets (“ROAA”) increased by 51% to 2.2% (2014: 1.5%)
  • Fully diluted after-tax return on equity (“ROE”) up 68% to 10.4% (2014: 6.2%)
  • £23.6 million (2014: £20.1 million) of unearned finance charges to contribute to earnings in future years

Business Highlights:

  • 10% increase in new business volumes to £56 million (2014: £51 million)
  • Total portfolio growth of 13% to £100 million (2014: £89 million)
  • Over 60% of all new business originations falling within top two credit grades
  • Record low level of arrears as portfolio quality continues to improve
  • Business plan for a banking licence has been submitted
  • Resolutions will be put to shareholders at our AGM to restructure the Company balance sheet to allow for the payment of a dividend
  • Committed debt facilities of £112 million (2014: £96 million) with headroom at year end of £23 million (2014: £14 million) to fund growth, plus an additional £10 million of facilities put in place since year end

Commenting on the results Scott Maybury, Chief Executive of PCFG, said: “We are very pleased to deliver another strong set of results, with our total portfolio growing by 13% to £100 million. Margins and profitability have increased even more significantly as a result of further improvements in portfolio quality and the positive effect of our overall operational gearing. We are continuing to progress our banking licence application and, in the meantime, we have significant headroom in our funding lines which will enable us to continue growing profitably for the foreseeable future. The current financial year has started well and we look forward with considerable optimism to the year ahead.”

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