A strong finish to 2010 has set Bradford-based specialist lender Provident Financial on track to achieve better-than-expected profits for the year to December 31.

The company, which in September transferred its 700 head office staff to a new base on Thornton Road in the £50 million Southgate development, expects to announce pre-tax profits of £141 million in March.

In a trading update, Provident said demand for doorstep credit handled by local agents, which had picked up in the autumn, had remained strong through the Christmas period despite bad weather.

Year-on-year sales growth in the fourth quarter was nine per cent, as Provident continued to focus on lending to existing good-quality customers.

After a stable first nine months of the year, the collections performance strengthened in the fourth quarter.

The focus on serving existing customers resulted in a slowdown in the rate of new customer growth. Customer numbers grew over the year by about one per cent and income was also marginally ahead of the previous year, both in line with expectations.

Vanquis Bank, the group’s credit card operation, increased customer numbers and income by around 25 per cent and generated a strong flow of new business in December.

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