PCF Group PLC has balance sheet strength and experience in its locker

What it does:

(), which became a fully operational bank in July 2017, specialises in motor finance and loans for businesses.

It lends to consumers and small and medium-sized companies wanting to buy cars, commercial vehicles, engineering equipment, motorhomes and horse boxes.

The bank recently extended its reach to the broadcast and media industry by agreeing to buy Azule Limited for up to £5.6mln.

How it’s doing

The specialist business bank has “progressively tightened” risk credit appetite, meaning the prime lending for the year would be 83% of the total, up from 74% a year earlier.

Against a tough market backdrop, the company registered a small but increasing share of the markets in which it operates.

The portfolio will show growth of 30% this year (2019: 55%) with the rate slowing to around 9% in the second half, a period affected in its entirety by the COVID-19 pandemic.

PCF estimates by the year-end its loans will total at least £435mln, up around £100mln year on year.

It has worked with companies and people struggling by offering what’s called forbearance on what is owed (time to pay). In a positive development, forborne loans by value currently represent 12% of its portfolio, down from 32% in early June.

What the boss says: Scott Maybury, chief executive

“Our trading performance in the period exhibits an encouraging combination of operational resilience, cautious lending and continuing profitability.”

“The near-term outlook for the economy may remain uncertain, however we have shown we have the resources and experience to steer a balanced course through the current downturn. I have confidence that this downturn will only slow our progress and we can emerge strongly to expedite growth and returns.”

Inflexion points

• Easing of coronavirus lockdown
• Loan demand recovers
• Economic backdrop improves back to pre-virus levels