Prov Financial optimistic for 2001
CREDIT group Provident Financial has said profits are growing in line with expectations and it remains confident of a good result for 2001.
Referring to its UK Home Credit Division it said it was achieving slow but steady growth and that it expects customer numbers, credit issued and profit for 2001 to grow at similar rates to 2000.
Credit issued in the first 10 months has grown by 3.6%, in line with expectations. Customer numbers have grown by 0.6% compared to October 2000. Bad debt as a percentage of credit issued remains within its target range for 2001 of 8.0% to 8.5%
In its progress to date in its international division has been good. In Poland, its largest international market, has recorded a profit before tax of £3.1m for the 10 months to 31 Oct 2001, against loss £4.2m previously, and is on is on course to produce a good profit for the year.
Its business in the Czech Republic has been consistently profitable each month since February 2001 and has reported a profit before tax of £1.7m for the 10 months against loss £1.3m.
The group said its South African operation has continued to experience tough trading conditions. It added it has recently commenced a consultation process with staff and unions in South Africa that contemplates closure of the business. If such a closure were to proceed, South Africa would report a loss for the year of £3.7m.
Overall, excluding South Africa, the International division is on course to record a small profit for the year, against loss £6.7m.
It said the insurance division continues to perform well, benefiting from conditions at the top of the insurance cycle and its expectation remains for good profit growth for the division in 2001.
