£160m wiped off value of Leeds credit business

CREDIT lender International Personal Finance lost more than £160m off its value yesterday as its share price plummeted.

Its shares closed at 253.7p last night, down 74p on the day, as it lost nearly a quarter of its value after announcing its half year results.

The Leeds-based company said yesterday morning that its growth in Mexico had come to a halt and it was facing tougher sanctions in Poland with “intense” competition in Europe.

Its market capitalisation fell from from £726.8m at the start of the day to £562.2m by the close.

Chief executive Gerard Ryan said yesterday: “Our businesses in Southern Europe and IPF Digital delivered strong growth.

“Growth in Mexico fell short of our expectations and we have responded to improve not only short-term performance but also to ensure that we capture the significant, long-term potential of this market. We introduced our new product offering in Poland to comply with new regulations and there is no change in guidance on the expected financial impact.

“Our business is undergoing significant change as we address competition and regulation but our strategy reflects this changing dynamic and we are well placed to take advantage of growing demand within our target segment of consumers for digital loans.

“We are confident that our strategy will deliver sustainable, profitable growth to shareholders.”

At the end of 2015, the company saw its share price dive in the wake of consumer legislation passed in Slovakia. It had previously been fined £2.4m by the Polish government over the way it calculated APR.