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2021-07-27

International Personal Finance plc: Half-year Report - 30 June 2021

International Personal Finance plc 
Consolidated Half-year Financial Report for the period ended 30 June 2021
Management Board Report
Principal activity
International Personal Finance plc specialises in providing unsecured consumer credit to 1.7 million customers across 11 markets.  We operate the world's largest home credit business and a fintech operator, IPF Digital.

Financial and operational highlights

Significantly

  • improved

financial
performance
and dividend
restored
o  Group profit
before tax of
£43.3 million
and all
divisions
profitable
(H1 2020:
Loss of
£53.3m)
o  Proposed
interim
dividend of
2.2 pence per
share (H1
2020: Nil)

Robust

  • trading

performance
o  Very good
progress made
in rebuilding
the business
and serving
our customers
safely
o  Successful
strategy of
selectively
relaxing
credit
settings
delivered 25%
increase in
credit issued
year on year,
with Q2 15%
ahead of Q1
o  Closing
receivables
increased by
5% (at CER)
since the
2020 year end
o  Significant
improvement
in impairment
as a
percentage of
revenue to
13.7% (FY
2020: 37.4%)
enabled by
continued
strong
collections
performance
o  Cost saving
benefits from
2020
rightsizing
programme
delivered -
Other costs
£13.4 million
lower year on
year

Strong

  • funding

position and
well
capitalised
balance sheet
o  Equity to
receivables
ratio 53.8%
at 30 June
2021
o  Bond and bank
facilities
total £596
million to
support
future growth
o  Undrawn
facilities
and non
-operational
cash balances
of £173
million
 
Group key H1 H1 YOY
statistics 2020 2021 change
at CER
Customer 1,818 1,679 (7.6%)
numbers
(000s)
Credit 378.2 459.5 25.1%
issued
(£m)
Revenue 362.2 262.9 (25.4%)
(£m)
Annualised 37.5% 13.7% 23.8
impairment ppts
% revenue
Annualised 44.3% 53.8% (9.5
cost ppts)
-income
ratio
Statutory (53.3) 43.3
(LBT) /
PBT (£m)
Statutory (27.7) 10.3
(LPS) /
EPS
(pence)
Half-year - 2.2
dividend
per share
(pence)

Gerard Ryan, Chief Executive Officer at IPF commented:"Our business plays a very important role in society by providing credit responsibly to those who are underbanked or underserved and, against a challenging backdrop of frequently changing lockdown restrictions, our teams have worked hard to serve our customers safely and rebuild our business.  I am very pleased to report a significantly improved financial performance, with the Group delivering £43.3 million profit in the first half of the year. Demand for credit is beginning to recover in our segment and we are well positioned to meet the significant longer-term demand for affordable credit from the consumers we serve and deliver long-term value to our stakeholders.  Based on our rapid and sustainable return to profitability and the undoubted strength of our balance sheet, the Board has recommended a resumption of dividend payments to shareholders."

Please refer to the associated PDF document to view the full announcement.
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