IPF profits dip while recovery is evident

CREDIT lender International Personal Finance (IPF) said that its profits have dipped by 20% despite seeing recent signs of recovery.

The Leeds-based group, formerly the international division of Bradford-based Provident Financial, saw its
profits before tax slip to £61.7m from £76.3m the previous year.

Its results for the year to the end of December 2009 also show that its revenue for the year was £550.2m down from £557.1m last time.

The directors recommended a final dividend of 3.4p per share, which will be paid in May.

But the company announced that it was pleased with the success of its operations in both Hungary – which had returned to profit – as well as Mexico.

It saw growth of 9% in the last quarter of last year.

Chief executive John Harnett said: “Whilst 2009 was a challenging year, the rapid recovery from the recession and the improved performance during the second half demonstrate the resilience of our business model, the effectiveness of our credit risk management systems, and our ability to reduce costs and generate cash.

“The achievement of our first annual profit in Mexico is an important milestone, and we continue to make good progress in Romania.

“Economic conditions, whilst uncertain, are continuing to improve and although severe weather in Central Europe has affected performance in January and early February, we expect the impact of this to unwind later in the year and so aim to carry the momentum achieved in the second half of 2009 into 2010, and to deliver improved results.”

International Personal Finance also announced a change to its board – John Lorimer, who is currently Chairman of CAF Bank – will be appointed as a non-executive director.

Senior independent director Ray Miles will also stand down in May and Tony Hales will take over his role.