Provident Financial has a good feeling about 2016
Provident Financial revealed that it had a good feeling about the year to come in an interim management statement today, with profit in all sectors of its business either in line with or exceeding its targets.
According to the lender, its Vanquis Bank brand, which offers credit cards to people with a less than immaculate credit rating, has had average receivables growth of 13 per cent.
Meanwhile, Moneybarn, which provides loans to people who would otherwise struggle to secure them, has seen its customers grow to 33,000 and its receivables increase to £243m, equating to growth of approximately 40 per cent for the brand.
The market, however, did not share the lender's optimism about the year ahead. Shares in the company, which was promoted to the FTSE 100 late last year, trading down 2.5 per cent at 2,870p shortly after 12:30pm London time.
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Analysts at Peel Hunt remarked: "Provident's first quarter further illustrates strong delivery of good quality growth, with trading so further either in line with, or ahead of, management’s expectations. Our only note of caution remains the valuation."
Meanwhile, analysts at Canaccord Genuity remarked that the announcement "marks a very solid start to what could be an important year for the business strategically and operationally as it executes its product innovation and distribution led strategy".