International Personal Finance faces FTSE 250 demotion as it reports decline in full year profit

The consumer credit company’s full year pre-tax profits were dragged lower by tougher regulation in Poland and restructuring costs in its Mexico business

finance

International Personal Finance reports drop in full year earnings

International Personal Finance PLC (LON:IPF) shares have plummeted more than 11% today after the company reported a decline in full year profits amid expectations it will be booted off the FTSE 250.

The British consumer credit company posted profit before tax of £92.6mln in 2016, compared to £116.1mln the prior year, blaming lower home credit profit and an increase in investment of its digital offering.

Profits were also hit by tougher legislation in Poland and an increase in impairments resulting from a restructuring of its Mexico business.

The group lost 2% of its customers, reflecting competitive pressures in Poland and the Czech Republic.

On the upside, the emerging markets lender was supported by a weaker pound against foreign currencies, which contributed £15.6mln to pre-tax profit.

The company also issued 8.1% more credit, helping to lift total revenue 1.2% to £755.9mln from £698.9mln.

A final dividend of 7.8p was recommended, bringing the full year dividend to 12.4p, flat on the previous year.

IPF is expected to be demoted from the FTSE 250 to the FTSE Small Cap Index in the London Stock Exchange’s (LSE) quarterly review, which will be announced after the markets close today. The FTSE reshuffle will be based on Tuesday’s closing prices.

http://www.proactiveinvestors.co.uk/companies/news/173999/international-personal-finance-faces-ftse-250-demotion-as-it-reports-decline-in-full-year-profit-173999.html

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Categories: IPF

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