Provident Financial Share Discussion Threads

[knowing] 18/3/2005 09:49

LOL

Ijiot

[mike crowsoft] 18/3/2005 09:49

LOL!

clive... why are you here ?

Are you looking to learn ?

[beorn in the usa] 18/3/2005 09:36

Looks like its starting to drop!

[knowing] 17/3/2005 09:07

You speaking from experience Jedi ?

[beorn in the usa] 17/3/2005 09:00

The people who borrow from Yes car will probably not have seen last nights programme

A bit of a sweeping statement, don't you think?!

I agree regarding long term damage, but this is going to hit profits this coming year. People buying a car generally discuss this with friends and family, and you only need one of these people to have seen the program to put them off buying from YES!

[bcf200] 17/3/2005 08:56

The people who borrow from Yes car will probably not have seen last nights programme. This as you would expect for selling to lower end of market. Yes Car is only very small % of PF so no long term damage IMHO.

[beorn in the usa] 17/3/2005 08:17

Just imagine how empty the YES stores will be today. I can see the Croydon branch shutting down altogether.

And even the door to door sales will suffer. Anyone who saw the program and is a provident customer is going to think twice about taking out any more debt with them. And there is plenty of competition in the sector.

Don't get me wrong, the company will recover from this.....but it will take time, and next years profits will definately suffer. Happy to stay short.

[beorn in the usa] 17/3/2005 08:06

I can see a big correction coming in these.

The power of the media will destroy any credibility that YES car had. It was possibly the most damning program I have ever seen, and this could well do another Jarvis!*














*Hopefully!

[forensic] 17/3/2005 08:03

The top mananagement at this company deserve to be sacked after last nights BBC documentary - its their job to know whats going on below them and manage the business properly and ethically.

[sealed] 17/3/2005 07:08

Provident sacks managers after TV film revelations
By Harry Wallop (Filed: 17/03/2005)

Provident Financial said yesterday that it had made major changes to its Yes Car business after a BBC documentary, screened last night, claimed to uncover serious failings at the business.

Rail Europe

The Whistleblower programme, which used under-cover filming, claimed that Yes Car technicians failed to carry out proper inspection on second-hand cars, failed to inform customers of the right to return cars within seven days and that sales people placed too much pressure on customers to take out loans.

Robin Ashton, Provident's chief executive, said yesterday the BBC had not shown him the programme. However he said that the four managers at the Croydon branch, where the filming took place, had been sacked. "We've also retrained most of the branch staff in response to an internal compliance procedure. Most of our customers are satisfied. Customer complaints have fallen by two-thirds," he said. The documentary diverted attention away from the company's full-year results, which showed that profits had fallen not just at the Yes Car business but also at its UK home-collected credit business.

Customer numbers in the UK last year fell 4.7pc to 1.53m - the second year in a row that customer numbers have fallen. The company blamed the fall on credit card companies being increasingly willing to loan to high risk individuals - Provident's core customers.

Mr Ashton said: "It's rather ironic that we are seeing more competition while at the same time being investigated by the Competition Commission." The competition authority is due to report on the home collected credit sector early next year.

Provident was able to report a 7pc increase in its group pre-tax profits to £151m, on turnover up 3pc to £1.17 billion, thanks to a strong performance overseas.

For the first time the number of customers overseas - up a quarter to 1.6m - has overtaken those in the UK. Mr Ashton said that the trial to lend money in Mexico had gone well.

The shares rose 32 to 710p. The final dividend, payable on June 3, is up 4pc to 20.7p.

In todays Daily Telegraph

[sealed] 17/3/2005 07:06

Provident Financial is high enough
Edited by Stephen Foley

17 March 2005

Consumer borrowing topped £1 trillion for the first time last year, but Britain's debt explosion has not done much for the bottom line at the doorstep lender Provident Financial.

Yesterday it unveiled a 7 per cent rise in profit before tax to £220.7m for 2004, but all of that growth was achieved overseas rather than at home. In the UK, the market for credit is now phenomenally competitive. Even though Provident competes at the more risky end of this business, for borrowers with below-average credit ratings, many mainstream lenders are expanding into this sector.

The company is also facing an Office of Fair Trading inquiry into the home credit market, with an initial report due in September. The inquiry follows a complaint from the National Consumer Council, which claims low-income borrowers are being overcharged by companies such as Provident.

Diversification in the UK is helping to a limited extent. Provident's motor insurance subsidiary unveiled improved profits of £34.6m, up by 21 per cent. However, against that profits at the company's Yes Car Credit business more than halved, from £11.2m to £4.4m.

That leaves international expansion as the company's best source of growth. A new venture in Mexico is in its earliest days, but there are reasons to be optimistic about Eastern Europe as the former Communist economies modernise. These lending markets are much less competitive. Provident's first overseas venture, in Poland, is now well established and performing strongly, as is the one in the Czech Republic. The nascent Hungary and Slovakia divisions made a profit for the first time in 2004.

These emerging economies are not without their risks, though, and with Provident's home market looking so challenging, the shares - which rose 32p to 710p yesterday - are high enough.

[madgooner] 16/3/2005 22:36

Worth a look certainly. Trades on pe 11 or 12 compared to RBS of 8/9, and it's running out of growth too. BSL expect resumption for 2007; presumably in poland etc. Risky end of market. Whilst price/ interest margin compensates in good times, its unsecured stuff that really hits when property turns down, since borrowers tend to pay mortgages first and worry less about ccjs for ar credit if they an only afford some of their commitments.

No position yet.

[beorn in the usa] 16/3/2005 22:06

results were good today. But the damning program on BBC tonight regarding certain sectors of PFG could cause problems over the coming months. Profits are DEFINATELY going to drop next ime around.

"YES car credit" shown to be selling dodgy cars, and generally ripping off the public with a hard sell approach. The same with their door to door lending service, although I can't see this being affected too much, as the Chavs will always need their smack money.

All in all - its a dog. short it.

Thanks for listening.

[makingheaps] 16/3/2005 18:56

Wondering if this will drift now that they've said profits will fall due to IFRS and development costs. Some implication also that the dividend might be at risk or at best maintained until cover is re-established.

[peter perfect] 16/3/2005 10:24

Featuring on Whistleblower, BBC at 9pm tonight. Not pretty from what I gather.

[this_is_me] 01/3/2005 12:51

I was forced to sell out when it breached my 'stoploss', I made a reasonable profit although not as much as I had hoped.

[this_is_me] 17/2/2005 09:46

I hope that we are now seeing the start of a bounce off the historically important £7 support resistance level.

[this_is_me] 11/2/2005 13:01

Now up over 25% since I bought in August. Plenty of upside left now that it is above £7.

[this_is_me] 08/2/2005 12:02

Yes - through the £7 support/resistance level, an intraday bounce off it and now powering up.