http://www.pcfg.co.uk

Trading at a significant discount to current NAV. Recently put 4M in the bank. Two brokers notes out from August for BUY and ACCUMULATE.

Company also pays a dividend.

Seems to have been forgotten so maybe now is the time to BUY.

Seems like the 12K buy moved this 2.6% today ! No stock around !

what happened to aql?

Sitting and waiting ateeq

Private & Commercial Finance Group's new division, Karma Vehicle Contracts has been launched.

The division complements the group's existing finance activities specialising in contract hire and contract purchase facilities to small and medium-sized businesses.

The typical customer is expected to be a small business that is not considered attractive by mainstream funders. To differentiate itself from other contract hire providers, KVC will finance new and used vehicles. A nationwide network of carefully selected brokers will market Karma's product range.

Robert Murray, managing director of the group's business finance division, said "we believe that now is the right time to expand our portfolio of products to include contract hire and that our ten years' experience of successful underwriting in the SME sector will enable us to write business for customers that other finance companies might choose to decline."

Karma has recruited a team with considerable industry experience, headed by general manager Jon Gilbert, who has worked in the leasing industry for fifteen years.

At the heart of the business is the IDSFleetware system, which allows brokers to generate instant contract hire quotes over the internet and manage proposals through to documentation.

Gilbert explained the rationale for choosing the Fleetware system. "It gives us an amazing amount of functionality but above all, its web-based Quotes Browser is perfect for our market. It gives our brokers the ability to produce a quote for any vehicle on any of our products quickly and efficiently and process a deal with minimum fuss."

The Karma-branded Fleetware system is currently being rolled out to KVC's brokers who have been extremely positive about its speed and ease of use. When Private & Commercial's first car supermarket opens later this year, KVC will be able to offer contract hire and contract purchase on stock vehicles, while benefiting from a strong retail sales channel for remarketing ex-lease cars.

Blue again. Continuing with the recovery. Anyone joing in ?

T1ps.com - 4th October 2004, PCF interims/ webcast alert


Private & Commercial Finance* (PCF) reported its interim numbers on Thursday. I am aware that my colleague Bill Johnston on WatsHot.com advised his readers to sell. Though I read and like Bill's analysis I shall not be following his advice on this occasion. In fact I shall be taking up the scrip alternative to the dividend within my SIPP to add to my holding. So too will CEO Tony Nelson with who I had a very enjoyable chat this afternoon. At 38.5p my stance remains "buy."

The figures, as had already been flagged, were not very good with a loss at the pre-tax level. However, now that the case with NIG is settled in Private and Commercial's favour - the company was awarded 4 million - P&C seems to be back growing the business. And in that regard there are some positive features. Turnover was down 6.6% to 15 million; gross profit down 7.6% to 4.8 million and operating profit down 64% to 0.8 million. So at the operational level there company was still in profit. There was a pre-tax profit loss of .731,000 and an attributable net loss of 482,000 after a tax credit of 249,000.

For fear of losing the action with NIG the company management went in to a defensive cost control mode. No doubt for that reason, the balance sheet looks reassuring. There were current assets of 53.7 million (including 2.0 million cash) to cover short term liabilities of 43.9 million. Shareholder funds stood at 7.0 million.

Business has now returned to strong organic growth with Q3 sales up 20%. An early priority has been to rebuild the Consumer Finance Division with the help of an excellent internet proposal system. The Karma car sale finance business is now operating from a site on the M1and should start to make a significant contribution to profits from next April while a second car showroom will open in January 2006. The Business Finance unit saw a 20% increase in sales volume in Q3 over Q1.The company now looks to be on the mend but says that it will have a loss in the second half. So calendar 2004 numbers won't impress. I would however expect a final dividend of 0.25p.

But in 2005 there is no reason why earnings per share could not hit 4p as the growth in the loan book seen since June starts to impact the bottom line and as the car supermarkets business starts to kick in. That sort of recovery would imply a significantly higher payout in 2005 while in 2006 I would be disappointed if earnings did not head back to c5p.

At this stage the company is not offering the sort of guidance which lends itself to exact forecasts. That should come next week when PCF takes a select group of analysts to its Watford showroom. Tony Nelson has invited me on the trip but though a trip to the outskirts of Watford is the sort of glamorous adventure that first attracted me to this business more than a decade ago I fear that I have a prior engagement. However I have arranged to meet up on Wednesday 20th to record a webcast with Tony so if you have any questions for PCF email them to tom@tisl.co.uk by midnight on 19th of October.

At 38.54p the rating is hardly demanding - a 2005 PE of just over 10 falling to less than 8. This is an industry where consolidation is the dynamic and I do not expect PCF to be independent in five years and it won't go out for less than three figures. If it stays independent a re-rating will take time but the growth prospects will drive a re-rating none the less. Still a "buy."

28500 share bought for over a 7% increase. This moves very rapidly and i mean very. It will have alerted some technical traders now and the recent tip should underpin the SP for further rises.

Still time to get in tomorrow for the divi.

Would have hoped a few of you guys would have sniffed money here after yesterdays rise.

44.5 online to buy so seems as the stock shortage continues. Should tick up with a couple more buys.

Must be a stock shortage.

Everyone going to sit and watch it go up again then ?

10K stock pushing this up 4%+.

What happens when the serious buying starts. If IC give it a buy rating tomorrow then yippee !

No sellers ? Seems most holders are in higher up.

Taken from an old broker note but very pertinent with the recent rise in interest rates;

An anticipated hike in UK interest rates over the medium term and freeing up of market share by the withdrawal of some competitors from the market are favourable to Private & Commercial's business model, Davies pointed out.

We have had how many interest rate hikes !!

This could add a little more sparkle to th price. Taken from the T1ps.com note ;

At this stage the company is not offering the sort of guidance which lends itself to exact forecasts. That should come next week when PCF takes a select group of analysts to its Watford showroom. Tony Nelson has invited me on the trip but though a trip to the outskirts of Watford is the sort of glamorous adventure that first attracted me to this business more than a decade ago I fear that I have a prior engagement. However I have arranged to meet up on Wednesday 20th to record a webcast with Tony so if you have any questions for PCF email them to tom@tisl.co.uk by midnight on 19th of October.

Anyone going to take the last few at under 47p ?

Come on lurkers. When they see the bid move they will follow.

Little information here with a circa 30M T/O

http://www.digitallook.com/cgi-bin/digital/security.cgi?username=&id=13088&ac=

Just seen this one

This is Money, 30th September 2004


And following the half-time results from Private & Commercial Finance showing a small loss, James Hollins, from the same stable, says the shares are a 'buy' at 38p with the company 'well funded to drive organic growth and profitability from its consumer and finance operations, as well as expanding its two new division'.

Just found the actual article which seems to imply that the Broker Daniel Stewart has a BUY rating.

http://www.thisismoney.com/20040930/si83054.html

This was the last note that they had out on PCF

Trading update Private & Commercial Finance Plc
Research Alex Davies 020 7847 0359 alex.davies@danielstewart.co.uk Roger Tejwani 020 7847 0380 roger.tejwani@danielstewart.co.uk Sales Tom Jenkins 020 7847 0370 tom.jenkins@danielstewart.co.uk Daniel Willmott 020 7847 0364 daniel.willmott@danielstewart.co.uk Sebastian Wykeham 020 7847 0362 sebastian.wykeham@danielstewart.co.uk Daniel Stewart & Company Plc 48 Bishopsgate London EC2N 4AJ Tel: 020 7374 6789 Fax: 020 7374 6742 www.danielstewart.co.uk
Private and Commercial Finance Plc (PCF.L), has this afternoon issued a trading statement. The key points of this are:
Motor and Equipment finance divisions maintain their trends from the interim period. As described in our note dated 30/10/03, there had been a long, industry-wide period of decline in both absolute prices and in margins. At the interim period we noted that car prices in Europe had grown for the first time in six years, and that prices in the UK had bottomed out. That these trends have continued, and that the UK market has subsequently improved illustrates the sustainability of this recovery, despite a firming in UK interest rates. This remains a highly competitive environment, and one in which PCF.L has refused to chase volume at unsustainable margins. Further increases in UK interest rates will actively help PCF.L, as any upward movement will help close the pricing gap between PCF.L and the competition. PCF.L will also derive considerable margin benefit from the integrated model which we now anticipate to commence in April 2004, both increasing the internal margin, whilst allowing more aggressive pricing and aiding the competitive positioning of the group.
The inaugural car supermarket site has been identified, and is due to open in April 2004. Although this is later than expected we consider that there is sufficient slack in our forecasts to accommodate this and we are not reducing our forecasts at this stage. We would however highlight that any continuing delay in other planned sites will have a deleterious effect on our sales forecasts, although with no significant bottom line contribution forecast until FY2005, the net effect on earnings for FY2004 is negligible.
Contract hire is progressing well, with new staff appointed and systems currently being installed. This is sstrongly complementary revenue stream to the car supermarkets, generating purchasing economies and offering an instant route to market at the end of the contract hire period. We are strongly encouraged that this division is demonstrating stand-alone growth.
Legal action against NIG is proceeding, although the hearing date has been postponed until April 2004. Whilst we see any delay as unfortunate, management has taken leading counselsadvice, and is confident of the merits of the case. A realistic worst-case scenario would be a net cost of 1.5m, which, whilst heavily impacting profits in the forthcoming financial year, would still leave an underlying profit.
We retain our current forecasts. On a FY04 PE multiple of 5.9x, PCF.L is trading at both a marked discount to its peer group, and to our assessment of fair value of 85p. With a compelling growth story, and strong fundamentals delivering a profitable earnings figure we retain our positive recommendation. BUY