Vanquis Banking Group 20 (VANQ)

Sector:

Financials

Index:

FTSE Small Cap

53.60p
   
  • Change Today:
    -2.20p
  • 52 Week High: 240.00
  • 52 Week Low: 46.20
  • Currency: UK Pounds
  • Shares Issued: 256.48m
  • Volume: 2,138,277
  • Market Cap: £137.47m

Provident review of consumer credit division 'nearing completion'

By Michele Maatouk

Date: Tuesday 04 May 2021

LONDON (ShareCast) - (Sharecast News) - Doorstep lender Provident Financial said on Tuesday that a review of its consumer credit division (CCD) is nearing completion and the outcome will be announced with its full-year results next week.
The company was responding to media speculation that the loss-making business will be shut. Over the weekend, The Mail on Sunday reported that Provident will also close its online lending business, Satsuma, to focus on its credit card business, Vanquis Bank, and its car finance operation, Moneybarn.

"PFG notes the recent media coverage regarding the previously announced operational review of its Consumer Credit Division (CCD) including, as an option, the possibility of a managed run-off of its home credit and Satsuma businesses," the company said.

"The group confirms that, whilst no decisions have been made, the review is nearing completion and the outcome will be announced with the group's full year 2020 results, to be published on Monday 10 May."

The Mail cited one source as saying that Provident is preparing to pull back from the market via a so-called 'collect out' plan, where it will try to claw back loans while winding down the entire operation.

At 1145 BST, shares were down 2.7% at 238.20p.

Broker Shore Capital, which rates the shares at 'buy', said: "The group had already indicated that it may be forced to place CCD into administration or liquidation if a Scheme of Arrangement (the 'Scheme') that is designed to cap the cost of customer complaints at £50m (plus £15m of administration costs) is not successful.

"The Scheme recently received initial approval from the courts to move to a creditor vote which is scheduled to take place at a meeting that will be held on 19th July 2021. We are confident that the Scheme will receive the necessary level of creditor approval as the alternative would likely see claimants receive nothing. As such, we think insolvency proceedings, which would involve a messy run-off and likely further reputational damage for the group, will be avoided."

Shore also noted that Provident had previously indicated that it would like to evolve its unsecured lending operations in due course to serve a broader cohort of customers, taking into account most recent sector regulation, as well as the recently published Woolard Review.

"This, in our view, has already given some indication that the group would like to shift its business model away from high cost credit and towards a mid cost credit model. As such, it would not be entirely surprising if the group does indeed conclude that a managed run-off of its home credit and Satsuma businesses is appropriate," it added.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

VANQ Market Data

Currency UK Pounds
Share Price 53.60p
Change Today -2.20p
% Change -3.94 %
52 Week High 240.00
52 Week Low 46.20
Volume 2,138,277
Shares Issued 256.48m
Market Cap £137.47m

VANQ Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
89.12% above the market average89.12% above the market average89.12% above the market average89.12% above the market average89.12% above the market average
80.95% above the sector average80.95% above the sector average80.95% above the sector average80.95% above the sector average80.95% above the sector average
Price Trend
93.03% below the market average93.03% below the market average93.03% below the market average93.03% below the market average93.03% below the market average
96.55% below the sector average96.55% below the sector average96.55% below the sector average96.55% below the sector average96.55% below the sector average
Income
49.75% above the market average49.75% above the market average49.75% above the market average49.75% above the market average49.75% above the market average
21.21% above the sector average21.21% above the sector average21.21% above the sector average21.21% above the sector average21.21% above the sector average
Growth
84.54% below the market average84.54% below the market average84.54% below the market average84.54% below the market average84.54% below the market average
71.96% below the sector average71.96% below the sector average71.96% below the sector average71.96% below the sector average71.96% below the sector average

VANQ Dividends

  Latest Previous
  Final Interim
Ex-Div 18-Apr-24 10-Aug-23
Paid 30-May-24 21-Sep-23
Amount 1.00p 5.00p

Trades for 28-Mar-2024

Time Volume / Share Price
14:58 163 @ 53.60p
14:58 184 @ 53.60p
14:57 1,644 @ 53.72p
14:56 4,000 @ 53.67p
14:55 12,000 @ 53.72p

VANQ Key Personnel

CEO Ian McLaughlin
Chair Sir Peter Estlin
CFO Dave Watts

Top of Page