UK-based Private & Commercial Finance
Group (PCFG) recorded an increase in funding and pre-tax profit,
and a loss in turnover for the 6 month period ended 30 September
2011.

Profit before tax was £241,901, a 61%
improvement from the £150,302 recorded for the same period in 2010.
The return on average portfolio assets increased to 0.5 %, and
total net assets grew by 12% to £8.2m. Turnover for the period was
£26.9m, a fall from the £29.4m recorded for the same period a year
prior, and new business advances fell by £2.6m to £19.7m for the
period.

However, PCFG attracted £10 million of new
medium-term funding facilities, and increased its existing
facilities by £5 million. In August, Bermuda Commercial Bank (BCB)
acquired an 8.8% stake in the company.

Scott Maybury, PCFG’s chief executive, said:
“We have achieved credible results in the period despite an
economic and banking environment that continues to be challenging.
I am very pleased to report that in addition to the new funding
facility of £7 million secured in June, we have recently arranged
another new facility of £3 million and received small increases to
two of our existing facilities. This increase in funding
facilities, together with the acquisition of £6 million of
receivables, has provided a boost to our income and provided some
positive impetus after a sustained period of portfolio run-off. We
look forward to building on these achievements.”

Chairman David Anthony said: “We recognise the
need for further improvement in profit before tax and now intend to
make a fresh start. Our medium-term objective is to improve the
return on average portfolio assets to 2% from its present level of
0.5% (2010 – 0.3%). We will do this by finding new routes to
market, improving margins, driving down operating and bad debt
costs and growing the portfolio.”

Anthony admitted organic growth of their
portfolio has been challenging, due to consumers deferring
investment decisions.

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“New business originations fell by £2.6
million during the period, since we will not sacrifice quality or
forego margin for short-term gain. Our IT infrastructure and
long-standing relationships with introducers stand us in good stead
and, while there are signs, particularly in the business finance
sector, of the return of competitive pricing pressures, there is
still adequate opportunity for an independent finance company to
differentiate itself.”