International Personal Finance (IPF)

Sector:

Financials

Index:

FTSE Small Cap

124.50p
   
  • Change Today:
    -2.00p
  • 52 Week High: 131.00
  • 52 Week Low: 100.50
  • Currency: UK Pounds
  • Shares Issued: 226.72m
  • Volume: 204,390
  • Market Cap: 282.27m
  • RiskGrade: 268

Profits jump at International Personal Finance despite Polish hit

By Abigail Townsend

Date: Thursday 14 Mar 2024

LONDON (ShareCast) - (Sharecast News) - Shares in International Personal Finance sparked on Thursday, after the London-listed firm posted above-forecast earnings.

IPF, which specialises in affordable credit and insurance products, said pre-tax profits rose 8.4% in the year to 31 December to £83.9m, ahead of internal expectations. Earnings per share jumped 11.5% to 23.2p.

The market had been expecting pre-tax profits closer to £74m.

As at 1145 GMT, shares in IPF were up 12% at 112.5p.

IPF said strong demand for its financial products had resulted in an 8% jump in customer lending, excluding Poland. Closing net receivables rose 12% on the same basis, to £893m.

Lending and receivables in Poland fell by 29% and 25% respectively, as expected, due to changing regulation and the rollout of a new credit card product.

Looking forward, IPF said it expected Poland's new pricing regulation to reduce ongoing pre-tax profits by up to £10m per annum, assuming all of the regulator's expectations were implemented in full.

However, Gerard Ryan, chief executive, reiterated IPF's commitment to the Polish market.

"We are now serving more than 130,000 customers with this exciting new offering, and we continue to adopt and change our Polish business to customer needs and ongoing changes in regulation," he said.

He continued: "Our relentless focus on meeting our customers' needs, combined with strong cost control and good capital management, has driven a very positive financial and operational performance for 2023.

"Our strong performance, together with our robust capital and funding position, provides a great foundation for delivering further good growth and continuing to successful execute against our strategy in 2024."

Shore Capital upgraded to the stock to 'buy' from 'under review' following the results.

Analyst Gary Greenwood said: "We would provisionally expect to reduce our 2024 pre-tax profit estimate into a range of £70m-£75m, from £83m, to reflect the potential impact of the new Polish regulation."

But he continued: "Even if the profit impact of Polish regulatory risk is double management's forecast - which we understand would wipe out the entire profitability in Poland - this would only add around 1 x to the PER multiple.

"We think the shares remain attractively valued, and hence move the stock back to a 'buy'."

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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.

 

IPF Market Data

Currency UK Pounds
Share Price 124.50p
Change Today -2.00p
% Change -1.58 %
52 Week High 131.00
52 Week Low 100.50
Volume 204,390
Shares Issued 226.72m
Market Cap 282.27m
RiskGrade 268

IPF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.71% above the market average96.71% above the market average96.71% above the market average96.71% above the market average96.71% above the market average
90.65% above the sector average90.65% above the sector average90.65% above the sector average90.65% above the sector average90.65% above the sector average
Price Trend
61.79% above the market average61.79% above the market average61.79% above the market average61.79% above the market average61.79% above the market average
36.21% above the sector average36.21% above the sector average36.21% above the sector average36.21% above the sector average36.21% above the sector average
Income
99.24% above the market average99.24% above the market average99.24% above the market average99.24% above the market average99.24% above the market average
97.01% above the sector average97.01% above the sector average97.01% above the sector average97.01% above the sector average97.01% above the sector average
Growth
9% below the market average9% below the market average9% below the market average9% below the market average9% below the market average
8.26% above the sector average8.26% above the sector average8.26% above the sector average8.26% above the sector average8.26% above the sector average

What The Brokers Say

Strong Buy 1
Buy 2
Neutral 0
Sell 0
Strong Sell 0
Total 3
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

IPF Dividends

  Latest Previous
  Final Interim
Ex-Div 11-Apr-24 31-Aug-23
Paid 10-May-24 29-Sep-23
Amount 7.20p 3.10p

Trades for 14-Jun-2024

Time Volume / Share Price
16:35 5,793 @ 124.50p
16:35 244 @ 124.50p
16:35 97 @ 124.50p
16:35 50 @ 124.50p
16:35 161 @ 124.50p

IPF Key Personnel

CEO Gerard Ryan
Chair Stuart Sinclair
CFO Gary Thompson

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