Provident Financial to deliver results in line with expectations

Non-standard lender Provident Financial has said it expects to report results for 2012 in line with expectations, with pre-tax profit coming in at around 180m pounds.

Non-standard lender Provident Financial has said it expects to report results for 2012 in line with expectations, with pre-tax profit coming in at around 180m pounds.

The firm said that the Vanquis Bank continued to outperform expectations, and this compensated for a relatively subdued demand for credit in the Consumer Credit Division (CCD).

Home credit numbers at the end of the year totalled 1.827m, on par with the previous year, after weekly customer recruitment in the fourth quarter continued to benefit from a number of initiatives running through the field organisation.

In the fourth quarter pressure continued to be placed on disposable incomes as a result of increases in food and utility prices, meaning the firm's agents and customers have continued to be cautious and tight credit standards have remained in place.

As a result, sales through the peak trading weeks of the fourth quarter were approximately 2.5% lower than last year and receivables ended the year approximately 1% lower than last year.

In the same period Vanquis Bank generated strong growth and margins throughout the fourth quarter, with demand remaining strong and customer numbers ending the year up 30% at 899,000. Average receivables growth for the year was approximately 37%.

Peter Crook, Chief Executive, said: "I am pleased to report that the group has traded well through the fourth quarter of 2012 and expects to report results in line with market expectations.

"Both businesses enter 2013 with sound credit quality and the group's funding position remains very strong."

The company added that its funding position remains strong and that the headroom on its committed debt facilities at the year end mounted to approximately £190m which, together with the retail deposit programme at Vanquis Bank, is sufficient to fund maturities and projected growth into 2015.

The share price dipped 0.64% to 1,395p by 08:35.

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Lab-grown meat: the new agricultural revolution
Soft commodities

Lab-grown meat: the new agricultural revolution

Vegan alternatives are taking off, but the future of food technology lies in lab-grown meat – cultivating steaks and burgers from animal cells, says A…
16 Apr 2021