Provident Financial (PFG)

Sector:

Financials

Index:

FTSE 250

255.20p
   
  • Change Today:
    -4.80p
  • 52 Week High: 381.60p
  • 52 Week Low: 210.60p
  • Currency: UK Pounds
  • Shares Issued: 253.77m
  • Volume: 192,403
  • Market Cap: £647.63m
  • RiskGrade: 247

Provident Financial quits doorstep lending, threatening 2,100 jobs

By Sean Farrell

Date: Monday 10 May 2021

LONDON (ShareCast) - (Sharecast News) - Provident Financial said it was pulling out of doorstep lending after more than 100 years as the subprime lender plunged to a £113.5m annual loss.
The FTSE 250 group said it would place its troubled home-credit business into run-off or consider a sale, putting 2,100 jobs at risk and costing about £100m. Provident will stop offering high-cost or home-collected loans and will concentrate on "mid-cost" personal loans.

A £74.9m loss at the home-credit business sent Provident Financial to a £113.5m pretax loss for the year to the end of December from a £119m profit a year earlier. The group swung to an adjusted pretax loss of £47.1m from a £152.8m profit a year earlier.

Provident Financial was founded in 1880 when Joshua Widdilove, an insurance agent, spotted that families were struggling to pay for basic items such as furniture and clothes. He lent them money and employed agents to collect the debt in small weekly instalments.

In recent years the home credit business has caused Provident problems, forcing a series of profit warnings after a botched overhaul and attracting an investigation by the Financial Conduct Authority into its handling of claims. Customer complaints have soared, threatening the business with collapse.

Malcolm Le May, Provident's chief executive, said: "In light of the changing industry and regulatory dynamics in the home credit sector, as well as shifting customer preferences, it is with deepest regret that we have decided to withdraw from the home credit market and we intend to either place the business into managed run-off or consider a disposal."

Provident shares fell 9.9% to 232.72p at 08:47 BST.

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

Note 2: RiskGrade figures are provided by RiskMetrics.

 

PFG Market Data

Currency UK Pounds
Share Price 255.20p
Change Today -4.80p
% Change -1.85 %
52 Week High 381.60p
52 Week Low 210.60p
Volume 192,403
Shares Issued 253.77m
Market Cap £647.63m
RiskGrade 247

PFG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
91.40% above the market average91.40% above the market average91.40% above the market average91.40% above the market average91.40% above the market average
96.69% above the sector average96.69% above the sector average96.69% above the sector average96.69% above the sector average96.69% above the sector average
Price Trend
15.28% above the market average15.28% above the market average15.28% above the market average15.28% above the market average15.28% above the market average
3.65% above the sector average3.65% above the sector average3.65% above the sector average3.65% above the sector average3.65% above the sector average
Income
95.80% above the market average95.80% above the market average95.80% above the market average95.80% above the market average95.80% above the market average
76.62% above the sector average76.62% above the sector average76.62% above the sector average76.62% above the sector average76.62% above the sector average
Growth
66.49% below the market average66.49% below the market average66.49% below the market average66.49% below the market average66.49% below the market average
69.75% below the sector average69.75% below the sector average69.75% below the sector average69.75% below the sector average69.75% below the sector average

What The Brokers Say

Strong Buy 5
Buy 2
Neutral 2
Sell 0
Strong Sell 0
Total 9
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

PFG Dividends

  Latest Previous
  Interim Interim
Ex-Div 21-Apr-22 15-Aug-19
Paid 20-May-22 26-Sep-19
Amount 12.00p 9.00p

Trades for 27-May-2022

Time Volume / Share Price
16:35 99,555 @ 255.20p
16:29 43 @ 256.00p
16:29 49 @ 256.00p
16:29 24 @ 256.00p
16:29 23 @ 256.00p

PFG Key Personnel

Chair Patrick J R Snowball
CFO Neeraj Kapur

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