Private & Commercial Finance Group (P&CF) has bucked the
trend and reports a good year’s trading for the 12 months to March
31 2008.

The group reported a significant increase in pre-tax profits to
£934,197 (15 months to 31 March 2007: £388,748, finance receivables
(net of unearned income) up 46 per cent to a record level of £132m
(31 March 2007: £90.5m) and turnover up some 30 per cent on an
annualised basis to a record £51.7m

During the year P&CF agreed additional funding lines with
Kaupthing Singer & Friedlander, and two other new lenders,
which totalled in excess of £25m and are designed to continue the
portfolio’s growth.

Robert Murray, managing director of P&CF’s Business Finance
division told Motor Finance: “The Consumer Finance Division
achieved a 37 per cent growth over the previous year to a new total
of £72m. The group now has a total portfolio of receivables
exceeding £160m which will release £29.1m of gross income over the
next three to four years.

“In recent months,” Murray confirmed, “we have seen some
competitors in both the business finance and consumer finance
sectors withdraw from the market altogether. We have focused on
tightening our lending criteria and ensuring we make the best use
of our capital. For the immediate future we are adopting a cautious
stance and aiming to write good quality business with healthy
margins.”

In the year-end statement, P&CF’s chairman Michael Cummings
set out his belief that the current economic shake-out will be for
the long-term benefit of cautious niche players. He said: “Although
we do not anticipate growing our portfolio at the same rate as in
the past two years, we nonetheless expect to continue to grow with
proportionately less requirement for additional capital and higher
returns on the new business we are writing.”

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 Motor Finance Issue: 44 – June 08
by
Brian Rogerson , Deputy Editor
Published for the web: July 25 08 16:51
Last Updated: July 25 08 16:52