StockMarketWire.com - Subprime lender Provident Financial said it expected to post annual results in line with market forecasts, as a better-than-expected performance at its Vanquis Bank unit offset a weaker showing at Moneybarn.

The company said market expectations represented a mean consensus 2019 group profit before tax, amortisation of acquisition intangibles and exceptional items of £162m.

The range of forecasts was £155m to £166m based on those published by 12 equity research analysts.

Provident Financial said its entire business delivered a result 'in line with internal plans' during the three months through December.

Vanquis Bank achieved results modestly above expectations due to favourable delinquency and tight cost control.

Moneybarn, however, performed modestly below internal plans, owing to higher impairment, which the company said primarily reflected stronger-than-forecast growth.

The company's third division, CCD, delivered results as planned.

'Accordingly, the group expects to report profits for 2019 as a whole in line with market expectations,' Provident Financial said.

Separately, the company said it had agreed a bilateral securitisation facility with NatWest Markets to fund Moneybarn business flows.

The new facility provided up to £100m of initial funding and was anticipated to grow to £275m over the next 18 months.

'We are well placed entering 2020 to continue to meet our customers' needs and deliver against the targets set out at our capital markets day in November,' chief executive Malcolm Le May said.



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