This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2017/aug/22/provident-financial-dives-second-profit-warning-peter-crook

The article has changed 10 times. There is an RSS feed of changes available.

Version 0 Version 1
Provident Financial shares plunge after second profit warning Provident Financial shares plunge after second profit warning
(35 minutes later)
The doorstep lender Provident Financial saw its stock market value more than halve as it issued its second profit warning in a matter of months, parted company with its chief executive and cancelled a planned dividend for shareholders. Provident Financial’s stock market value has more than halved after the doorstep lender issued its second profit warning in months, parted company with its chief executive and cancelled a dividend for shareholders.
The company, which specialises in lending to people in financial difficulty, now expects to make losses of up to £120m this year, after its debt collection rate slumped to 57% compared to 90% last year. The company, which specialises in lending to people in financial difficulty and joined the FTSE 100 in Dec 2015, expects to make losses of up to £120m this year.
Its debt collection rate slumped to 57%, compared with 90% last year.
Its chief executive, Peter Crook, will step down with immediate effect in the light of the company’s poor performance, with Manjit Wolstenholme taking on the role of executive chairman. Provident will also cancel its interim dividend – and “in all likelihood” the full-year payout as well – in an attempt to conserve cash.Its chief executive, Peter Crook, will step down with immediate effect in the light of the company’s poor performance, with Manjit Wolstenholme taking on the role of executive chairman. Provident will also cancel its interim dividend – and “in all likelihood” the full-year payout as well – in an attempt to conserve cash.
The perfect storm of bad news for investors sent shares in the sub-prime lender plunging more than 60%, from more than £17 to £682p. The perfect storm of bad news for investors sent shares in the lender plunging more than 60%, from more than £17 to £682p.
Bradford-based Provident has struggled to implement a new way of collecting on the loans it makes, admitting that it the changes have led to it “falling a long way short” of targets. Bradford-based Provident has struggled to implement a new way of collecting on the loans it makes, admitting that the changes have led to it “falling a long way short” of targets.
“I am very disappointed to have to announce the rapid deterioration in the outlook for the home credit business,” said Wolstenholme. “I am very disappointed to have to announce the rapid deterioration in the outlook for the home credit business,” Wolstenholme said.