28th Jul 2016 08:11
LONDON (Alliance News) - International Personal Finance PLC Thursday reported a fall in pretax profit for the first half of 2016, but maintained its interim dividend and said the UK's vote to leave the European Union is not expect to hit its business other than in terms of currency translation.
The FTSE 250-listed home credit lender reported a pretax profit of GBP30.7 million, down from GBP43.3 million the year before, as a small rise in revenue to GBP261.6 million from GBP260.3 million was offset by higher administrative costs.
The company said the fall in profit was broadly in line with its expectations, and is a result of a hit from the new price cap in Poland, the winding down of its business in Slovakia, mixed performance for its home credit business, and expected higher levels of investment in its IPF Digital business.
International Personal Finance maintained its interim dividend at 4.6 pence.
The company said that the result of the Brexit vote was "significant global market uncertainty", but said it expects no "material impact" on its operational side.
"Our businesses in Southern Europe and IPF Digital delivered strong growth. Growth in Mexico fell short of our expectations and we have responded to improve not only short-term performance but also to ensure that we capture the significant, long-term potential of this market. We introduced our new product offering in Poland to comply with new regulations and there is no change in guidance on the expected financial impact," said Chief Executive Officer Gerard Ryan in a statement.
"Our business is undergoing significant change as we address competition and regulation but our strategy reflects this changing dynamic and we are well placed to take advantage of growing demand within our target segment of consumers for digital loans. We are confident that our strategy will deliver sustainable, profitable growth to shareholders," Ryan added.
Shares in International Personal Finance were down 15% at 287.20 pence Thursday morning, the worst performer in the FTSE 250.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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