Bradford-based Provident Financial delivers strong new business volumes

Bradford-based Provident has published its results in the City. Photo: Jonathan Brady/PA Wire
Bradford-based Provident has published its results in the City. Photo: Jonathan Brady/PA Wire
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PROVIDENT Financial today said it had delivered strong new business volumes over the last half year, when it was the subject of a failed takeover bid.

Provident Financial has published its interim results for the six months ended June 30 2019.

The group said its continued good recovery underpins the board’s reinstatement of the interim dividend

Group profit before tax and bid defence costs was up 76.9 per cent to £61.2m.

The group said strategic initiatives are well underway to deliver the group’s ‘Vision for the Future’, including a number of product developments, combining online loans capabilities and cost and funding efficiencies.

One of the biggest business stories in Yorkshire over the past few months has been the bitter, £1.3bn hostile takeover bid for Provident Financial by rival Non-Standard Finance (NSF), which ultimately failed.

NSF called off the offer after failing to gain enough backing for the bid. It said that due to the lack of support for the deal, the merged group would not have sufficient regulatory capital. Bradford-based Provident responded by saying that the withdrawal of the bid was “in the best interests” of its shareholders.

Malcolm Le May, the chief executive officer, commented today: “Despite the distraction of the unsolicited bid from February to June this year, I am pleased with the group’s operational and financial performance during the first half of the year. We have delivered strong new business volumes whilst maintaining stable delinquency trends and our first half results are in line with our internal plans.

“We are pleased to announce reinstatement of an interim dividend of 9.0p per share, which reflects our confidence in the ongoing recovery of the group. We will be hosting a Capital Markets Day on 7 November 2019 where we will provide further detail on the medium-term strategy and outlook for the group.”