Credit, Collections & Insolvency News
Subprime lender Provident Financial has revealed it has spent between £17million and £22million, to date in the hostile takeover bid by its rival Non-Standard Finance (NSF).
In a trading update this morning, Provident revealed the figures in a trading update for the period January 1 to March 31. the firm also published exceptional items for 2019, which also included costs of £10m in relation to a voluntary redundancy programme.
Malcolm Le May, Group Chief Executive, said “I am pleased with the Group’s performance during the first three months of the year. We have diligently built on the stronger foundations established over the past 18 months and have delivered strong customer growth and new business volumes, with stable delinquency trends and overall results in line with management’s plans for 2019.”
“The completion of the ROP refund programme, the expected settlement of the Moneybarn FCA investigation in the near future and the recent agreement with the FCA to bring back enhanced performance management disciplines in our home credit business, demonstrate unequivocally that we are responding positively to regulatory change. We have put the Group’s legacy issues behind us.”
“We have a clear strategy to deliver attractive and sustainable shareholder returns and good customer outcomes in an evolving industry and regulatory environment. Our goal is to achieve sustainable receivables growth of between 5% – 10% per annum and a return on equity in the range of 20% – 25%. In addition, we are focused on maintaining a dividend cover of at least 1.4 times as well as a prudent regulatory capital buffer against the total capital requirement prescribed by the PRA.”
Trading highlights included:
