Shares in FTSE 100 subprime lender Provident Financial (PFG) fell by 17 per cent on Wednesday after it warned that disruption in its home credit business was more painful than previously expected.
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The company is replacing self-employed agents with customer experience managers, and agent vacancies have more than doubled the rate anticipated. This has hurt collections, sales penetration and retention. The expected first-half profit shortfall of £15m has been revised up to £40m. Analysts at Peel Hunt have downgraded their adjusted pre-tax profit estimate for 2017 by 15 per cent (now expecting £293m and EPS of 151p), and 2018 by 8 per cent.
