Private & Commercial jumps on better than expected growth

15th Apr 2015 15:28

Shares in Private & Commercial Finance Group rose over 7% on Wednesday after the group said it expected its annual results to be ahead of expectations.In a trading update, the company, which finances acquisitions of vehicles, plant and equipment, said the growth of its portfolio and its profitability had exceeded its estimates last year.The London-listed firm said net business originations rose 10.2% to £56m in the year to 31 March, adding it had "achieved" its 2% return on average assets."The growth and performance of our receivables has delivered the initial target we set ourselves for return on assets, and our results have exceeded market expectations," said group chief executive Scott Maybury."In addition, throughout the year we have been successful in increasing debt facility headroom which provides the group with a stronger funding position moving forward than we have seen in previous years."The company, which has £33m of committed financing under a facility provided by banking lenders, said it expected "further progress in the current financial year".Private & Commercial shares were up 7.45% to 16.66p at 16:09 on Wednesday.