UK-based leasing and motor finance firm
Private & Commercial Finance Group (PCFG) recorded a 67%
increase in pre-tax profit for the year ended 31 March
Profit before tax was £761,148, up from the
£455,336 recorded for the previous year despite a 10% drop in
turnover to £52m from £57.9m recorded in 2011
New business advances totalled £37.9m for the
year, down slightly from the 2011 total of £40.8m. However, PCFG
made a £131,486 profit on the sale an £11m receivables book in
Net profit was up dramatically to £479,000
from £38,000 last year thanks to the receivables sale which cut the
company’s tax charge to 37% for the year.
The group also secured £19m in funding
facilities and at least £8m of additional funding is to be raised
through the issue of convertible loan notes.
PCFG’s net assets increased by 11% to £8.8m
and net asset value per share increased to 16.6p up from 15p in
2011, which the firm said reflected the profitability and strong
cash generation in the year.
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Scott Maybury, PCFG’s chief executive, said:
“These results reflect a solid performance from our portfolio,
delivering increased profits, good earnings per share growth and a
much improved return on assets compared to 2011.
“The sale of receivables in the year has
reduced our tax charge and made a significant contribution to
meeting our objective of normalising our tax rate and thereby
further improving earnings per share.”
David Anthony, PCFG chairman, admitted the
economic outlook will remain challenging but was confident of
He said: “We intend to continue to improve
return on assets towards our medium term goal of 2% after which we
hope to be in a position to recommence the payment of dividends.
New initiatives will generate portfolio growth and the quality of
our portfolio will underpin this performance.”