IPF falls as the pound rises

International Personal Finance (IPF), the door step lender focused on central and eastern Europe, has fallen 4% after announcing its currency hedging strategy.

IPF issued a profit warning back in December over adverse exchange rates as the value of sterling has appreciated against the currencies of its main markets: Poland, the Czech Republic, Slovakia, Hungary, Mexico and Romania.

IPF now says it has put in place a foreign currency hedge for 70% of its expected 2012 overseas profits.

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The company estimates that the average exchange rate during 2012 will be around 17% worse than that achieved in 2011.

Over the last 12 months IPF shares have dropped 55%.

BS