Provident Financial beats estimates

13th Jan 2011 08:44

Sub-prime lender Provident Financial expects full-year results to come in "slightly" ahead of forecasts following a strong finish to 2010.The pick-up in home credit sales since September continued during the run up to Christmas, helping fourth quarter year-on-year sales grow 9%.Provident's collections performance bucked up in the last three months of 2010, while customer numbers at the year-end were up about 1% on the year before.Vanquis Bank generated a strong flow of new business and receivables growth in December against unchanged underwriting standards, with customer numbers and average receivables for the year both up 25% by year-end.Favourable delinquency trends since the second quarter continued. Vanquis Bank has a "high quality" receivables book and is expected to deliver further strong growth."We have made excellent progress in further diversifying our funding base and are delighted to have M&G Investments as a partner in the group's core long-term funding strategy," said chief executive Peter Crook.Results for the 12 months to 31 December are out on 1 March. Analysts are currently predicting a profit before tax and exceptional items of between £136m and £146.5m.