Provident Financial expects to be ‘quids in’

As Provident Financial updates the market Graham Spooner, investment research analyst at The Share Centre, explains what it could mean for investors.

Provident Financial expects to be ‘quids in’

In a trading statement released this week Provident Financial said that it expects 2016 results to be in line with market expectations, as it concludes that each of its business have met its internal forecasts.

Highlights of the statement include its Vanquis Bank unit seeing new account bookings in Q4 ahead of the prior year, its consumer credit unit sales rising 3% compared to the same period in 2015 and new business volumes at its second hand cars finance provider Moneybarn increasing by approximately 7%.

These numbers suggest that demand for the group’s offerings shows no signs of slowing and the cash generation has been impressive, leading to a 4.3% dividend yield. Nevertheless, after a steady rise, the shares underperformed the FTSE 100 in 2016 and may be set for a further period of consolidation.

 

Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest. 

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