5th Dec 2018 10:10
LONDON (Alliance News) - Specialist finance firm PCF Group PLC hiked its final dividend Wednesday after annual profit and income rose as its portfolio continues to grow strongly.
For the year ended September, pretax profit widened 44% to GBP5.2 million from GBP3.6 million the year prior. This was after net operating income rose 34% to GBP13.7 million from GBP10.2 million the year before.
PCF proposed a 0.30 pence per share final dividend, up 58% from 0.19p the year prior.
"This has been an excellent year for PCF Bank," Chairman Tim Franklin said. "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 GBP350 million medium-term target. Our savings proposition has been well received in the market place and, supported by the new lower cost of funds, portfolio growth has been strategically positioned in the prime segment of our existing lending markets."
New business originations grew 75% to GBP148.4 million from GBP84.6 million the year prior. Meanwhile, its lending portfolio expanded 50% to GBP219 million from GBP146 million the year before. Retail deposits also tripled to GBP191 million from GBP53 million, with over 3,400 new retail deposit customers added.
"Subsequent to the year-end, we completed the earnings-enhancing acquisition of Azule Ltd, a well-established and profitable broadcast and media equipment finance company", Franklin added. "This acquisition is the first step in the diversification of our portfolio by both product and route to market."
In November, PCF completed its GBP5.6 million cash-and-shares acquisition of Azule.
"We look forward to the year ahead with confidence in the bank's ability to deliver profitable and sustainable growth for our shareholders", Franklin continued.
Shares in PCF were 0.8% lower at 36.62 pence on Wednesday.
Related Shares:
PCF.L