By Joe Hoppe
Shares in International Personal Finance PLC rose Wednesday after the company said pretax profit rose 45% on an underlying basis along with increased revenue, though reported pretax profit slipped.
Shares at 0742 GMT were up 8.2 pence, or 11%, at 84.9 pence.
The London-listed credit company said pretax profit rose on an underlying basis to 33.8 million pounds ($40.7 million), compared with an underlying pretax profit of GBP23.3 million a year prior. The company said the increase reflected a strong recovery in lending after the coronavirus pandemic and a strong operational performance.
On a reported basis, pretax profit slipped to GBP33.8 million from GBP43.3 million.
Revenue rose to GBP297.4 million from GBP262.9 million, though the company’s impairment charge rose to GBP43.3 million from GBP11.7 million.
Customer lending rose 14% at constant exchange rates, driven by improving demand, and closing customer net receivables rose 14% on year to GBP770 million.
The board declared an interim dividend of 2.7 pence a share, up from 2.2 pence a year before.
“There is significant long-term demand for affordable credit within our existing footprint and we see substantial and sustainable long-term growth opportunities for the group,” International Personal Finance said.
Write to Joe Hoppe at [email protected]