International Personal Finance profit dips as regulatory matters hit company

Despite an increase in customers and the amount of credit issued, International Personal Finance’s revenue and profit before tax has dipped.

The FTSE 250 credit business reported revenue dropped from £783.2m to £735.4m for the calendar year, however it rose 4.1% on a constant currency basis.

That in turn made profit before tax and exceptional items dip from £123.5m to £116.1m.

That was despite an increase in customers from 2.64m to 2.81m, and a small rise in credit issued from £1.022bn to £1.043bn.

Chief executive Gerard Ryan said it was a robust performance considering a number of significant regulatory matters impacting the business.

“It was an excellent year for IPF Digital and Mexico and we intend to increase our investment and accelerate expansion plans in these businesses.

“Our European home credit businesses, with the exception of the Czech-Slovakia market, increased underlying profit growth in challenging trading conditions.”

However, Ryan warned that new legislation in Poland and Slovakia will impact the group’s profitability in 2016 and beyond, with regulatory headwinds to continue.

“We are, nevertheless, committed to delivering sustainable returns to our shareholders and have evolved our strategy to reflect the changing market environment in order to underpin this commitment."

The results came as the company announced it had made chief commercial officer David Broadbent redundant.

It followed a review of the cost base of the company's head office as part of a broader collective consultation.

He has been a director of the company since July 2007, following the demerger from Provident Financial Group that he joined in August 1999.

"Dave has given great service to the business over the last 16 years,” said Ryan.

“I would like to thank him for everything that he has done in that time and wish him well for the future."

Broadbent resigned from the board on Tuesday and will leave the company on March 7.