Better than expected first half results at credit provider
Leeds-based unsecured consumer credit provider, International Personal Finance (IPF), has reported “very strong financial and operational progress” in the first half of the year.
It has recorded pre-exceptional profit before tax of £47.3m (H1 2023: £37.8m), up 25%, with excess capital to be returned to shareholders in the form of a share buyback programme of up to £15m.
IPF adds it has enjoyed good demand for its range of financial products, resulting in customer lending – excluding its operations in Poland – growing 7% year-on-year, with improving momentum in the second quarter.
Gerard Ryan, chief executive officer, said: “Executing on our Next Gen strategy has delivered good growth momentum, exceptional customer repayment performance and pre-exceptional profit before tax of £47.3m, ahead of our 2024 internal financial plan.
“The successful refinancing of our €341m Eurobond, which attracted very good demand and over 150 investors, ensures we have a strong funding position to support our ambitious growth plans.
“As a result of the excellent first half results, our strong balance sheet and positive growth prospects, we have announced an increase in the interim dividend of 9.7% to 3.4 pence per share, in line with our progressive dividend policy, together with a share buyback programme of £15m, improving the efficiency of our balance sheet.
“We continue to see substantial demand for our broadening portfolio of credit and insurance services from underserved consumers and we are confident that there are further attractive growth opportunities as we continue to execute on our strategy.”
IPF says it has significant headroom on undrawn funding facilities and non-operational cash balances of £179m to fund its plans through to the end of 2025.
It now expects to achieve full year pre-exceptional profit before tax of between £78m and £82m for 2024, ahead of current market expectations.
