Provident Financial clarifies performance targets

7th May 2019 08:18

(Sharecast News) - Provident Financial has advised investors that its recently announced performance targets should not be used to forecast profit as the company continued to resist a hostile takeover. The doorstep lender set out targets on 3 May alongside a trading statement. It said it was aiming for 10% return on assets and 20-25% return on equity by 2021 as well as receivables growth of 5-10% a year.Clarifying the guidance on Tuesday, the FTSE 250 company said: "For the avoidance of doubt, the performance targets ... are not intended to forecast a particular level of profit and, as a consequence, it is not possible to derive a profit figure for any future period."Provident Financial published the targets as part of its effort to repel a hostile takeover by smaller rival Non-Standard Finance. Chief Executive Malcolm Le May is trying to revive the company after a turbulent period that threatened its future and resulted in it crashing out of the FTSE 100 index of leading companies.