Credit lender Provident appoints new chief to help turn around the company

TROUBLED CREDIT lender Provident Financial has appointed acting chairman Malcolm Le May as its CEO with immediate effect.

Mr Le May, who was appointed to Bradford-based Provident’s board in 2014, fills a position that has been open since August, when a second profit warning prompted the departure of CEO Peter Crook.

Provident has been hit by problems at its door-to-door lending operation and the group’s troubles have been compounded by investigations by the financial watchdog into two of its businesses.

Mr Le May said that his key objective is to execute a turnaround of the group, resolve the regulatory issues and make progress at the home credit business.

The company said the home credit arm “continued to make good operational progress” and that talks continue with the Financial Conduct Authority relating to investigations of its Vanquis Bank and Moneybarn businesses.

Provident expects to report a loss of about £120m in its consumer credit division for 2017 as it struggles to win back customers.

The firm first warned about problems at its door-to-door lending operation in late June after a botched reorganisation led to a shortage of staff.

Senior independent director Stuart Sinclair will take over as acting chairman as the company begins the process of appointing a new external chairman.

Analyst Gary Greenwood at Shore Capital said: “The decision to make a permanent appointment from within will perhaps come as a surprise to some who may have hoped for a fresher pair of eyes.

“Furthermore, it suggests to us that the group has struggled to attract a suitable external candidate, which is perhaps not surprising given the multitude of issues facing the company, being both operational (the well-reported issues with the Home Credit business) and regulatory.

“That said, we view Mr Le May as a very able and well-respected candidate, who is more than capable of tackling what is currently a challenging situation for the group.”