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Peter Webb comments on PCF Group

16:01, 20th February 2019
Abraham Darwyne
Market Commentary
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Specialist asset finance provider PCF Group PLC announces a proposed placing and open offer to raise up to £10.75m and strengthen its capital base ahead of further expansion.

The proposed fund raising is priced at 30p per share (a 16.7% discount to mid market price on 19 February) and will include an offer to all qualifying shareholders of up to £0.75m. The balance will be directly placed with existing and new large investors, including main backer Somers Ltd and managememt.

Following a successful fund raise in March 2017 that raised £10.5m at 25p the Company has grown significantly.
 
The acquisition of specialist broker Azule (broadcast and media equipment finance) last year and move into bridging finance offers additional scope for growth outside the company’s traditional used car finance offering. 

A strong balance sheet will be essential if PCF are to achieve their short term loan book goal of £350m (versus latest £219m) and the placing and open offer is likely to be well supported.

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