IPF increases credit lending

The Leeds-based business, which mainly operates in central and eastern Europe as well as Mexico, said that credit issued increased from six per cent in the final quarter of 2011 to 16 per cent in the first quarter of 2012.

Customers in the quarter totalled 2,430 and credit issued stood at £203.9m.

IPF said the growth, coupled with year-on-year customer growth of nine per cent, had driven increased receivables of 11 per cent and revenue of seven per cent.

It added that there was no visible impact of economic slowdown on credit quality with annualised impairment as a percentage of revenue in line with December 2011 at 26 per cent.

The group increased its pre-tax profit above £100m for the first time in 2011.

However, it said pre-tax profit for the first quarter of 2012 was £6.1m, down from £8.3m last year, after the group absorbed the impact of higher early settlement rebates and weaker foreign exchange rates.

Chief executive Gerard Ryan said: “Our trading performance in the first quarter was good, with stronger growth in credit issued, stable credit quality and further progress in Mexico. The result for the quarter includes the impact of higher rebate costs and weaker FX rates, which are in line with previous guidance. Overall, we have made an encouraging start to the year and are on track to perform well in 2012.”