Leading lender Provident Financial is set to benefit from investment in overseas markets despite reporting a profit downturn, it said today.
The Bradford-based company provides home credit, credit cards and motor insurance to nearly four million customers in the UK, Ireland, Central Europe and Mexico.
The company saw group profits before tax drop 20 per cent during the first half of this year to £66 million - down from £82.9 million during the same period in 2005.
Earnings per share fell 21 per cent - from 23.7p to 18.26p.
However, chief executive Robin Ashton said company bosses were confident they would soon reap rewards from international markets after more than doubling overseas investment.
During the first half of 2006 Provident invested a total of £19.1 million in start-up businesses and new growth, dwarfing the figure of £7.2 million recorded last time.
Significant investment of £10.7 million was made in the group's Vanquis Bank credit card business and a combined total of £5.8 million sunk into start-ups in Mexico and Romania.
Mr Ashton said: "This year is a year of investment to enhance further growth."
Chairman John Van Kuffeler said the company had been buoyed by an upturn in the UK home credit market.
"The medium term outlook for UK home credit has improved, with the business now delivering growth in customer numbers and credit issued," he said. "Our established central European countries continued to deliver profits growth, despite the distraction in Poland resulting from the introduction of new products to comply with the recently introduced rate cap legislation.
"This year, 2006, is a year of significant investment to enhance the future growth of the group's UK and international businesses.
"International has invested heavily in opening up the Mexican and Romanian markets as well as developing future growth opportunities through piloting new products and researching potential new countries."
The company saw revenue increase by five per cent to £568.7 million from £542.3 million last time.
Provident started its UK home credit business in Bradford 126 years ago. The business expanded into the European market in 1997. Some 1.8 million customers are now based on the continent.
The company employs about 650 people at its HQ in Sunbridge Road, Bradford.
e-mail: dan.webber@bradford.newsquest.co.uk
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article