Daily Mirror (Northern Ireland)

GRAHAM HISCOTT Provident still all out of step Lender issues another profit warning

-

SHARES in doorstep lender Provident Financial dived yesterday after its fightback plans suffered a setback.

More than £300million was wiped off the Bradford-based business’s value as it issued yet another profit warning.

Provident – known to many customers as “The Provvy” – was founded in 1880 and offers loans to people who can struggle to get money elsewhere.

It is yet to recover from a shakeup of its door-to-door lending staff in 2017. And moves to get approval from the Financial Conduct Authority for staff bonuses have been delayed.

Provident is also in the process of refunding £160m to one million Vanquis credit card customers. This follows an FCA investigat­ion into interest charged on a repayment plan, which led to Provident being fined £2m. The firm has also been hit by the FCA’S clampdown on high cost credit.

Provident chief executive Malcolm Le May said: “I am pleased with the progress we have made in 2018.”

He added there was a market of 10 to 12 million people who “are not well served” by mainstream lenders.

But the Provvy’s share price slumped 20% yesterday – the worst fall since a 66% plunge in late 2017 – as it said full-year profits would be at the bottom end of a £151m to £161m range.

City broker Cenkos said the profit warning was “a stumble, not a trip”. But Gary Greenwood of Shore Capital said it was “another kick in the teeth for the investment case”.

The shares slump comes a week after an MP accused Provident of using “cynical” marketing tactics over the Christmas period to push loans with an interest rate of 535.3% to vulnerable customers.

Rachel Reeves, chairwoman of the Business Select Committee, said in a letter to the FCA that the Provident adverts tried to “tug on people’s heartstrin­gs”.

 ??  ?? bonus scheme, but Persimmon later admitted focus on the payout had become a “distractio­n” to the image of the business.Laith Khalaf, senior analyst at broker Hargreaves Lansdown, said: “Persimmon is still selling more homes at higher prices, but the rate of growth is slowing.” Booming online fashion business Boohoo aims to take on the world.Joint bosses Mahmud Kamani and Carol Kane said: “The global growth opportunit­y is significan­t and we will be addressing it in a controlled way.”Manchester-based Boohoo yesterday revealed sales surged 44% to £328million in the last four months of 2018.The fast fashion firm, which owns the Pretty Little Thing and Nastygal labels, was only founded in 2006 but is now worth £2.2billion. Its budget clothes are aimed at young people. Another firm targeting younger customers trainer chain JD Sports - also had a bumper Christmas.Despite strong results, Boohoo’s share price dived 9% yesterday.Sophie Lund-yates, equity analyst at broker Hargreaves Lansdown, said: “Punters can’t quite say no to fashion that costs less than your average panini.” US banking giant JP Morgan raked in a colossal £5.5billion profit in the final three months of 2018. But the Wall Street firm’s bumper haul – up 67% – still fell short of expectatio­ns.It took the industry heavyweigh­t’s earnings for last year to more than £25bn.The bank’s 256,000 strong global workforce shared £6.1bn in pay and perks in the final quarter of last year, although the bonus payouts to high-flyers will be dished out soon.
bonus scheme, but Persimmon later admitted focus on the payout had become a “distractio­n” to the image of the business.Laith Khalaf, senior analyst at broker Hargreaves Lansdown, said: “Persimmon is still selling more homes at higher prices, but the rate of growth is slowing.” Booming online fashion business Boohoo aims to take on the world.Joint bosses Mahmud Kamani and Carol Kane said: “The global growth opportunit­y is significan­t and we will be addressing it in a controlled way.”Manchester-based Boohoo yesterday revealed sales surged 44% to £328million in the last four months of 2018.The fast fashion firm, which owns the Pretty Little Thing and Nastygal labels, was only founded in 2006 but is now worth £2.2billion. Its budget clothes are aimed at young people. Another firm targeting younger customers trainer chain JD Sports - also had a bumper Christmas.Despite strong results, Boohoo’s share price dived 9% yesterday.Sophie Lund-yates, equity analyst at broker Hargreaves Lansdown, said: “Punters can’t quite say no to fashion that costs less than your average panini.” US banking giant JP Morgan raked in a colossal £5.5billion profit in the final three months of 2018. But the Wall Street firm’s bumper haul – up 67% – still fell short of expectatio­ns.It took the industry heavyweigh­t’s earnings for last year to more than £25bn.The bank’s 256,000 strong global workforce shared £6.1bn in pay and perks in the final quarter of last year, although the bonus payouts to high-flyers will be dished out soon.
 ??  ??
 ??  ??
 ??  ??

Newspapers in English

Newspapers from United Kingdom