Provident Financial looks to the future

HOME credit lender Provident Financial today said it will report results for 2013 that will be in line with expectations.

The Bradford-based business said that its Vanquis Bank operation continued to trade strongly last year but there had been no change to weak demand for credit experienced by its consumer credit division.

The group, which will report its full year results on February 25, confirmed it will have a £13m cost for the restructuring of its consumer credit division (CCD) which includes 340 job losses last year and the roll out of its new Satsuma product.

Provident said that trading conditions for its home credit business remained challenging during the fourth quarter of last year with customer confidence remaining very low and continued pressure on disposable incomes from the “persistent rises” in food and utility prices. 

“As a result, customer behaviour has remained cautious and demand for credit weak,” the company said.

Headroom on the group’s committed debt facilities at December 31 were £235m which, together with the retail deposit programme at Vanquis Bank, is sufficient to fund maturities and projected growth until the seasonal peak in 2016.
 
Commenting on the final quarter of the year, Peter Crook, chief executive, said: “I am pleased that the group expects to report 2013 results in line with market expectations.
 
“Vanquis Bank’s trading performance remains excellent, there is good momentum behind the programme of work to reposition CCD and the group’s funding position is strong.”