PCF boosts dividend after banking a profit increase

For the year ended 30 September, the commercial banking outfit’s profit before tax reached £5.2m, up 44% on the year before, after new business originations increased by 75% to £148.4m.

Retail deposit customer numbers rose from 1,060 to 4,500, with total retail deposits more than tripling from £53m to £191m, while the total lending portfolio increased by 50% to £219m as the business finance and consumer finance divisions grew strongly.

Consequently, PCF’s proposed final dividend was 0.3p per share, up 58% on the prior year as part of the company’s “progressive dividend policy”.

Tim Franklin, chairman of PCF, said: "This has been an excellent year for PCF Bank. We report increasing profitability and are delivering on our key strategic objectives. In the case of portfolio growth, we are a year ahead of schedule to meet our £350m medium-term target."

The AIM traded company ended its first year as a fully operational bank with net assets of £42.6m, up 10% on the year before.

"Subsequent to the year-end, we completed the earnings-enhancing acquisition of Azule Limited, a well-established and profitable broadcast and media equipment finance company. This acquisition is the first step in the diversification of our portfolio by both product and route to market," said Franklin.

Azule is expected to immediately enhance PCF’s earnings, with its integration being a priority for 2019.

PCF’s shares were up 0.27% at 37.00p at 0913 GMT.