Non-Standard Finance reveals costs of failed bid for Provident Financial

John van Kuffeler, group chief executive of Non-Standard Finance plc
John van Kuffeler, group chief executive of Non-Standard Finance plc
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Non-Standard Finance today said it remained resilient in the face of economic uncertainties, as it revealed the cost of its failed bid for Provident Financial.

The group said it had enjoyed continued strong underlying growth in the first half of 2019, driven by its personalised approach to customer engagement.

There was an exceptional charge of £25.3m including fees and costs associated with the offer for Provident Financial plc of £12.7m and Loans at Home goodwill impairment of £12.5m to give a reported loss before tax of £22.8m.

The group said its current trading was in line with market expectations and it remained cautiously optimistic about the full-year performance.

It added: "Whilst macroeconomic uncertainties remain, the group remains resilient and well-placed to meet its objectives."

In June, Non-Standard Finance called off its hostile £1.3 billion offer for doorstep lending rival Provident Financial after failing to gain enough backing for the bid.

John van Kuffeler, Group Chief Executive, said "The group delivered another good performance in the first half of 2019 with strong loan book growth and a further reduction in impairment as a percentage of revenues. We have secured a leading position in three highly attractive segments following a four-year programme of investment. During this period, Everyday Loans has doubled the size of its loan book, our Guarantor Loans Division has more than doubled and Loans at Home has grown substantially. Now this phase of significant investment is complete, we expect a greater proportion of future revenue growth to be translated into profit.

"Whilst we believe strongly that a combination with Provident Financial plc would have accelerated the delivery of benefits for customers, employees and shareholders, each of our businesses continued to perform well during the first half. Our strategy remains unchanged and we remain on course to deliver attractive long-term returns through a combination of income and capital growth."