Provident down 57% after another profit warning; CEO to leave

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Provident Financial PLC












PFG, -64.41%










shares plunged 57% after the company issued its second profit warning in recent months on Tuesday. The U.K. lender said Tuesday that it expects to log a loss between 80 million pounds and £120 million in the third quarter, citing a “substantial deterioration” in the performance of its home credit business. In June, Provident warned of a £60 million loss for the period. The company said in its trading update Tuesday that it is withdrawing the interim dividend declared on July 25 and signaled that a full-year dividend is unlikely. Provident’s chief executive, Peter Crook, is stepping down with immediate effect. It said debt collections are at 57% compared with 90% in 2016, and sales are £9 million a week lower. The disappointing home credit performance comes after Provident shifted to using full-time “customer experience managers” rather than self-employed agents.

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