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Provident Financial Slips To H1 Loss; Says Cautiously Optimistic About FY20, Beyond

(RTTNews) - Provident Financial plc (PFG.L) reported Wednesday that its first-half loss before tax was 28 million pounds, compared to prior year's profit of 43.1 million pounds.

Basic loss per share was 9.1 pence, compared to profit of 9.7 pence a year ago.

Adjusted loss before tax was 32.6 million pounds, compared to profit of 80.4 million pounds a year ago. Adjusted basic loss per share was 10.1 pence, compared to profit per share of 23.4 pence last year.

The company said the adjusted profit is better than its initial view of Covid-19's potential impact on its businesses.

Revenue declined to 445.6 million pounds from 501.5 million pounds last year.

Further, the company said its Board is not proposing an interim dividend with the continued aim of preserving capital and supporting business stability, while last year's dividend was 9.0 pence per share.

However, it remains the company's intention to resume dividend payments to shareholders as soon as operational and financial conditions normalise.

Looking ahead, the company said its market will grow due to the pandemic, but at present it appears the supply of credit into the market is decreasing, which cannot be a good outcome for customers, nor a public policy one for the UK.

Malcolm Le May, Chief Executive Officer, said, "The focus for the second half of this year and 2021 will be on continuing our focus and support of our customers, through lending responsibly as their preferred alternative to inaccessible mainstream lenders.... when combined with our robust capital position and diverse funding structure, I am cautiously optimistic about the outlook for 2020 and beyond."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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