Positive sales trend for Provident Financial
LENDER Provident Financial has seen sales in its Home Credit division rise 7% since the beginning of September compared to the same period last year.
In a trading update this morning, the company said the positive figure reflected its strategy of focusing on “good quality” customers and stable collection levels.
Its Vanquis Bank operation also continues to receive “a strong flow of new business”, Provident Financial said.
Chief executive Peter Crook said: “I am pleased to report continuing favourable trends in both businesses which reinforce management’s confidence of delivering a good result for the year.”
Provident Financial said it remained confident that the Government’s spending cuts will only have a “modest impact” on its Home Credit customers and predicted that other changes, such as the increase in the income tax threshold, will have a positive effect.
Earlier in the year, Provident Financial set out plans for Vanquis Bank to grow its receivables book to £450m by the end of 2012 whilst maintaining a post-tax return on equity of 30%. The company said today it was on track to meet these targets which would produce £20m of dividends for Provident Financial in 2011 and 2012.
