25 Feb 2015

International Personal Finance today announces the Full year results and statement of dividends. Year ended 31 December 2014.

  • Strong underlying profit growth
    • Strong underlying growth of £25.4M (21.5%) in profit before tax and exceptional items offset by additional new business investment of £9.0M and weaker FX rates of £11.0M
    • Profit before tax and exceptional items increased 5% to £123.5M
    • Costs well-managed and further improvement in efficiency with cost-income ratio 38.8% after absorbing new business costs
    • Impairment as a percentage of revenue in target range at 28.1%
  • Continued growth in customers and credit issued although slowed as Q4 progressed
    • Year-on-year customer numbers and credit issued grew 2% and 5% respectively
    • Revenue for the year increased by 13%
    • Growth in the last weeks of the year below expectations
  • New products, channel developments and further geographic expansion will contribute to higher levels of growth in 2015 and beyond
    • Licence to commence trading in Spain expected shortly
    • Further geographic expansion continues in Mexico, Lithuania and Bulgaria
    • Transformation for Growth (T4G) programme positively impacting business
    • Multiple new product and channel launches to broaden appeal to new and existing home credit customers
  • Digital business established
    • Acquisition of MCB Finance Group plc (MCB) in February 2015 - an experienced, profitable digital consumer loans provider in five countries
    • hapiloans launched in Poland
  • Target capital ratio reduced and dividend pay-out ratio increased
    • Target equity to receivables capital ratio reduced to 40% from 45%
    • Target dividend pay-out ratio increased to 35% from current 25%
    • Proposed full year dividend increase of 29% to 12.0 pence per share
    • €300M core Eurobond funding refinanced at significantly lower rate and £100M bank facilities renewed

Chief Executive Officer, Gerard Ryan, commented:
"In 2014 we delivered strong underlying profit growth and invested in further expansion of our business and we now have operations in thirteen countries. We experienced a slowdown in growth in Europe in the final weeks of the year, but have taken action to address this and continue to launch new products to support future growth. We are also very pleased to have established our new digital business that we believe will broaden our appeal to a much wider customer base. In line with our commitment to focus on shareholder returns, we are happy to announce a 29% increase in our full-year dividend. Overall, we believe that the business is well placed to make good progress in 2015."

For further information contact:

International Personal Finance plc

Rachel Moran - Investor Relations
+44 (0)7760 167637 / +44 (0)113 285 6798

Gergely Mikola - Media
(+3620) 339 02 25

FTI Consulting

Neil Doyle
+44 20 3727 1141 / +44 7771 978 220

Paul Marriott
+44 20 3727 1341 / +44 7710 426 131

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