9th Jun 2016 08:20
LONDON (Alliance News) - Private & Commercial Finance Group PLC on Thursday posted higher pretax profit and revenue for the first half of its financial year amid growth in new business volumes and lending.
The AIM-listed company, which provides vehicle finance to small and medium-sized companies, said pretax profit in the six months to the end of March was GBP3.3 million, up from GBP2.1 million a year earlier, as revenue rose to GBP51.3 million from GBP45.3 million.
The group did not declare an interim dividend but said a total payout for the financial year will be recommended based on its final results.
New business volumes grew 13% year-on-year in the half to GBP63.0 million, up from GBP56.0 million. The group's portfolio grew to GBP112.0 million from GBP100.0 million, and its business finance lending grew 24% in the half, compared to 11% growth a year earlier.
In May, the group made a formal application for a banking licence in the UK with City regulators.
"We are focussed on the key strategic objective of obtaining a banking licence. In conjunction with the submission of our application we have provided the regulator with a mobilisation plan which assumes the granting of the licence, subject to mobilisation, by the end of 2016," said Chief Executive Scott Maybury.
"Up to that point and during that mobilisation phase the quality of our portfolio, the prudence of our existing business model and the availability of adequate facility headroom will enable us to continue to deliver further organic portfolio growth and profitability gains," he added.
Private & Commercial Finance shares were up 4.0% to 32.50 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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