24th Feb 2016 08:26
(Correcting comparative earnings and revenue numbers.)
LONDON (Alliance News) - International Personal Finance PLC on Wednesday said its pretax profit was flat in 2015 as the group's revenue fell but customer numbers and credit issued volumes both rose, even as it faces some regulatory issues in its markets.
The FTSE 250-listed home credit lender said its pretax profit for the year to the end of December was flat at GBP100.2 million, as revenue fell to GBP735.4 million from GBP783.2 million. The profit was kept flat despite investments made in its digital business and adverse foreign exchange movements.
The group was also hit by new legislation imposed in Poland and Slovakia. In Poland, it has been forced to create alternative finance products to comply with new lending regulations and similar issues are set to face the business in Slovakia due to new rate-cap rules.
"New legislation in Poland and Slovakia will impact our profitability materially in 2016 and beyond, and we expect regulatory headwinds to continue," said Chief Executive Gerard Ryan.
Customer numbers for the group rose to 2,813 from 2,640 and the volume of credit issued increased to GBP1.04 billion from GBP1.02 billion.
The group said it made significant progress on growing its business in Mexico and on its digital platform and it remains confident shifts in its strategy will help it cope within a changing consumer and regulatory environment.
IPF said it would pay a final dividend of 7.8 pence per share, flat year-on-year, meaning its total dividend will edge up to 12.4p from 12.0p.
"We delivered a robust financial performance in 2015, despite a number of significant regulatory matters impacting the business," Ryan added.
Shares in International Personal Finance were down 5.0% at 252.00 pence Wednesday morning, one of the worst performers in the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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