PCF Bank shares tank after emergency lending freeze
Shares in London-listed PCF Bank have tanked more than a third today after the firm announced it would halt lending activity as it struggled with cash levels following a failed takeover.
PCF Bank, which offers both retail banking services and business financing, announced this morning that it had failed to raise fresh cash after a takeover bid by Castle Trust Capital collapsed at the end of last month.
Bosses at the AIM-listed lender said it would now be forced to shutter operations while it explores means to raise emergency money.
“Given this uncertainty, together with the current challenging and volatile macro-economic conditions, the Board of PCF has taken the decision, with effect from today, that it would be prudent for PCF Bank to suspend any new lending activities until further notice,” PCF said in a statement.
“The business will also accelerate a review process of its operational structure with the intention of further reducing its cost base.”
Asset sales were under consideration as a means to raise emergency cash, it added.
PCF was founded in 1994 and won its full banking licence in December 2016. It has a finance portfolio of over £350m, with around 55 per cent of its portfolio dedicated to financing UK SMEs.
Shares in the firm shed more than a third of their value after the update today, with the firm currently trading at 93 per cent lower across the year.