Sub-prime lender remains on track
CREDIT provider Provident Financial’s performance since Brexit “reinforces confidence in delivering good results for 2016”.
The Bradford-based company is the UK’s largest sub-prime lender, operating through its brands Satsuma, glo, Vanquis Bank and Provident Home Credit,said credit quality was “very sound” across the group.
Peter Crook, Provident Financial’s chief executive, said: “I am pleased to report that the group has continued to perform in line with its internal plans through the third quarter and is in good shape to deliver further good quality growth as it enters the important fourth quarter trading period.”
It said the group’s funding and liquidity positions remain strong with balance sheet gearing at the end of September of 2.1 times, compared with a covenant limit of 5.0 times.
It has headroom of £131m on its committed debt facilities which, when put together with the retail deposits programme at Vanquis Bank, it estimates it sufficient to fund maturities and projected growth in the business until May 2018.
Provident Financial is, alongside Morrisons, one of Yorkshire’s two FTSE 100 companies. Its share price fell by a quarter in the wake of the EU referendum, but has since recovered and last night’s close price was 6% higher than its June 23 close.
