Credit firm Provident Financial sees half-year profits of £90 million

Peter Crook CEO of Provident Financial outside the Bradford HQ

Peter Crook CEO of Provident Financial outside the Bradford HQ

First published in News
Last updated

PROVIDENT Financial has reported pre-tax profits of more than £90million despite having to pay out £4 million as part of a proposed 225-person redundancy move.

The credit card company, who employ more than 700 people at their Godwin Street base in Bradford, has announced a pre-tax profit of £90.1m for the first half of this year, as part of its interim results.

This figure also showed a two to three per cent increase in the firm's own market expectations for this period.

The proposed 225 redundancies are of branch-based administration staff at their sites throughout the country. This is due to the firm's continued roll-out of mobile technology and their move towards paperless processing.

The firm's Consumer Credit Division (CCD) saw the company take a £4m hit earlier this year after announcing the redundancies. They claim this move would give them savings in a full year of £4million. The 90-day consultation period for these redundancies is due to close next month.

Despite this one-off payout, CCD's pre-tax profit increased by 2.5 per cent to £37m.

The interim dividend per share was up by 10 per cent to 34.1p for this year, from 31p last year. The basic earnings per share for the first half of this year increased by 24.6 per cent to 54.2p, from 43.5p last year.

The group has 2.5 million customers overall and its operations feature Vanquis Bank and the CCD.

Meanwhile, Vanquis Bank's UK pre-tax profit rose by 36.1 per cent to £68.3 million from £50.2m last year.

The start-up loss of their Polish pilot operation was £4.6m, which the firm says still shows "encouraging momentum".

The figures for the interim results cover the six months up to June 30 this year.

Provident also plan to expand Satsuma Loans, a service which offers cash loans between £100 and £300 paid back over 13 or 26 weeks, over the next few months.

This section of the business is also based at Godwin Street and firm chiefs hope to bring more jobs to the city.

Peter Crook, Provident Financial chief executive, said: "It's a really pleasing set of results.

"Satsuma business is making really good progress in Bradford. We are looking to scale up this business in 2015.

"It will bring more jobs to Bradford in due course. We are the largest employer in Bradford city centre.

"Credit cards are an important tool for people. The underlining demand for credit cards is very strong. We are willing to give people a chance who have been turned down for a credit card by their bank.

"We have a really nice portfolio of businesses.

"There are new things going on for us. We are a leaner, cleaner business. There is a good rate of growth and profits for us.

"I'm very positive of the outlook and we are in great shape. The outlook looks bright for us."

Comments (15)

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5:27pm Thu 24 Jul 14

Grumpygirl says...

Bradford! The only economic growth is in high interest loans to the poor.
Bradford! The only economic growth is in high interest loans to the poor. Grumpygirl
  • Score: 14

6:36pm Thu 24 Jul 14

bazzathetyke says...

Disgusting....
Peter Crook....How apt a name!...
Disgusting.... Peter Crook....How apt a name!... bazzathetyke
  • Score: 6

8:04pm Thu 24 Jul 14

Idlesteve says...

Loans that take advantage of "benefit street" type customers and charge disgusting interest rates. It's great for Bradford that isn't it? I agree with the CEO's name - Crook indeed.
Loans that take advantage of "benefit street" type customers and charge disgusting interest rates. It's great for Bradford that isn't it? I agree with the CEO's name - Crook indeed. Idlesteve
  • Score: 6

8:06pm Thu 24 Jul 14

tinytoonster says...

future looks bright for them, dull for all those in debt!
apr on satsuma, 1294.3%
good luck anyone taking them.
oh sorry you are desperate and they know it.
crook by name, crook by nature....
future looks bright for them, dull for all those in debt! apr on satsuma, 1294.3% good luck anyone taking them. oh sorry you are desperate and they know it. crook by name, crook by nature.... tinytoonster
  • Score: 7

10:42pm Thu 24 Jul 14

allinittogether says...

So if they hadn't thrown 225 people out of work they would ONLY have made £86,000,00 profit in six months?
What money grubbing company in a sleazy industry.
So if they hadn't thrown 225 people out of work they would ONLY have made £86,000,00 profit in six months? What money grubbing company in a sleazy industry. allinittogether
  • Score: 5

2:25am Fri 25 Jul 14

Here today says...

Doorstep lender, like a vulture looking to pick the bones from the discarded society
Doorstep lender, like a vulture looking to pick the bones from the discarded society Here today
  • Score: 3

6:46am Fri 25 Jul 14

Albion. says...

Well done Provident, good report.
Well done Provident, good report. Albion.
  • Score: 1

7:05am Fri 25 Jul 14

linebacker2 says...

Pretty much as expected, a good news story is met with a barrage of negative comments by the usual posters..
Pretty much as expected, a good news story is met with a barrage of negative comments by the usual posters.. linebacker2
  • Score: 4

8:34am Fri 25 Jul 14

BertSanders says...

If you use the service you pay the price Provident is a business. If it is not used the future is loss making. It is a choice.
If you use the service you pay the price Provident is a business. If it is not used the future is loss making. It is a choice. BertSanders
  • Score: 0

9:00am Fri 25 Jul 14

bullrt_63 says...

Just shows what blood suckers they are.
Just shows what blood suckers they are. bullrt_63
  • Score: 1

9:17am Fri 25 Jul 14

allinittogether says...

linebacker2 wrote:
Pretty much as expected, a good news story is met with a barrage of negative comments by the usual posters..
And the usual apologists condone the indefensible
[quote][p][bold]linebacker2[/bold] wrote: Pretty much as expected, a good news story is met with a barrage of negative comments by the usual posters..[/p][/quote]And the usual apologists condone the indefensible allinittogether
  • Score: -1

12:56pm Fri 25 Jul 14

linebacker2 says...

allinittogether wrote:
linebacker2 wrote:
Pretty much as expected, a good news story is met with a barrage of negative comments by the usual posters..
And the usual apologists condone the indefensible
And where exactly do you think high risk borrowers will go to for loans without the likes of the Provvy?

You reckon they'd go to HSBC or the local break your legs loan shark?
[quote][p][bold]allinittogether[/bold] wrote: [quote][p][bold]linebacker2[/bold] wrote: Pretty much as expected, a good news story is met with a barrage of negative comments by the usual posters..[/p][/quote]And the usual apologists condone the indefensible[/p][/quote]And where exactly do you think high risk borrowers will go to for loans without the likes of the Provvy? You reckon they'd go to HSBC or the local break your legs loan shark? linebacker2
  • Score: 5

4:49pm Fri 25 Jul 14

Avro says...

Half year profit iof £90 million, yet just a few weeks ago they announced more than 200 jobs under threat:
http://www.thetelegr
aphandargus.co.uk/ne
ws/11287711.More_tha
n_200_jobs_under_thr
eat_at_Bradford_base
d_Provident_Financia
l_Group/

Interesting reading in the YP on who their target is now set on:
http://www.yorkshire
post.co.uk/business/
business-news/provid
ent-push-to-bear-fru
it-for-lender-satsum
a-1-6746045
Half year profit iof £90 million, yet just a few weeks ago they announced more than 200 jobs under threat: http://www.thetelegr aphandargus.co.uk/ne ws/11287711.More_tha n_200_jobs_under_thr eat_at_Bradford_base d_Provident_Financia l_Group/ Interesting reading in the YP on who their target is now set on: http://www.yorkshire post.co.uk/business/ business-news/provid ent-push-to-bear-fru it-for-lender-satsum a-1-6746045 Avro
  • Score: 0

12:00pm Sat 26 Jul 14

They only do damage! says...

Didn' the rate payers of Bradford help these out with their new offices? What return did we get! This is bussiness after all.
Didn' the rate payers of Bradford help these out with their new offices? What return did we get! This is bussiness after all. They only do damage!
  • Score: 0

12:37pm Thu 31 Jul 14

llos25 says...

Scum
Scum llos25
  • Score: 0

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