Buoyant IPF proving to be ‘must-have’ stock

Shares in the Leeds-based company rose 25.2p to 375.5p.

IPF said that it is performing in line with expectations and it remains confident of further good progress in 2011. Analysts at Panmure Gordon described IPF as a “must-have stock”.

“The global unbanked population is huge and so the growth opportunity is vast,” they said in a note.

“There is little competition and with less than once times leverage the return on equity is 22 per cent – low risk with the credit crunch having little impact on the profit and loss account. The shares are far too cheap being valued at less than nine times next year’s earnings,” they added, repeating their ‘buy’ rating and 437p target price.

IPF chairman Chris Rodrigues told shareholders at yesterday’s AGM: “IPF continues to perform well and in line with our expectations.

“During the important Easter trading period we have delivered a strong sales performance with growth in credit issued increased from nine per cent for the first quarter of 2011 to almost 13 per cent for the four months to the end of April, including a much improved performance in Mexi- co.

“Alongside this strong sales performance credit quality and impairment remain good.”