Int'l Personal Finance surges on record profits, buyback

30th Jul 2013 15:33

International Personal Finance (IPF) saw shares surge on Tuesday after the Eastern Europe- and South America-focused home credit business reported record profits in the first half and pleased investors with a 60m-pound share buyback.The company said that profit before tax (before exceptionals) totalled £42.3m in the six months to June 30th, up 35% from £31.4m the year before, helped by growth in all its markets. It was particularly confident about its launch into the Mexican market - the region doubled profits in the first half to £5.0m - which is growing at a quicker rate than its other markets in Europe.IPF - which served 2,440 customers during the period, up 3.1% year-on-year - generated revenue of £360.3m, up 9.2% from £316m in the first half of 2012."Our strategy is delivering stronger growth and has resulted in a record first half profit. Our expansion plans are on track and we have made good progress on new product development which is helping to strengthen our customer relationships," said Chief Executive Officer Gerard Ryan.Equity as a percentage of receivables increased to 58.9% during the first half, so in an effort to reduce this ratio to around 50% the company announced a plan to undertake an on-market share buyback programme worth £60m.The firm said: "We are committed to making the group's balance sheet work harder in order to optimise the amount of equity capital in the business and enhance shareholder returns. The stock was up 16.55% at 658.5p by 15:45 on Tuesday.BC