 announced a shake-up across its management team, after issuing its second profit warning in three months on Tuesday.){kind=link}
Provident Financial (LON:PFG) announced a shake-up across its management team, after issuing its second profit warning in three months on Tuesday.
The British firm, which specialises in sub-prime lending, announced the appointment of Chris Gillespie as managing director of the home credit business, replacing Andy Parkinson.
Gillespie will be tasked with overhauling the business and its slipping profits, by reigniting relationships with customers and to normalise debt collection rates to bring up revenues.
Alongside an incoming managing director, its home credit operations also are set to welcome Luke Enock, who currently for Satsuma (a Provident subsidiary), and Greg Cant who also is currently employed at the firm.
This follows the high-profile resignation of Chief Executive Peter Crook earlier this week, after shares in the financial company tumbled as much as 60 percent on Tuesday.
The company was forced to issue its second profit warning in months, with the company anticipating a loss of between £80 and £120 million for the year.
The poor annual performance was attributed to a fall in debt collection rates from 90 percent in 2016, to 57 percent for this year.
Addressing the third consecutive warning, Manjit Wolstenholme, executive chairman and acting chief executive, commented:
“I am very disappointed to have to announce the rapid deterioration in the outlook for the home credit business.”
Provident Financial is a Yorkshire based lender which specialises in credit cards, home collected credit, online loans and car financing.
The company was established in Bradford, Yorkshire back in 1880 and was first listed on the London Stock Exchange in 1962.
As of currently, the firm has 2.5 million customers, most of which would not qualify for standard bank loan regulations. As a consequence, they are referred to as ‘sub-prime’ loans.
Back in 2009, various sub-prime mortgage lenders in the US and UK came under scrutiny
Amid the announcement, shares in Provident have rebounded slightly from Tuesday’s considerable losses.
Shares are currently up 17.95 percent as of 13.55PM (GMT).