International Personal Finance Plc (IPF.L) reported Tuesday a decline in first-half profit hurt by charges, higher early settlement rebates and weaker FX rates. Meanwhile, the company experienced strong underlying trading performance in the first half. The company also announced higher dividend and about 25 million pounds share buy back program.
For the first half, pre-tax profit declined to 25.8 million pounds from 31 million pounds last year. Underlying pre-tax profit, which excluded certain items, dropped to 31.4 million pounds from 35.7 million pounds a year ago.
The latest period's underlying profit reflects underlying growth of 7.5 million pounds before twin impact of higher early settlement rebates and weaker FX rates.
Revenues increased 7.7 percent to 316 million pounds and credit issued grew 12.2 percent to 409.3 million pounds.
During the period, customers increased 7.3 percent to 2.46 million.
Chief Executive Officer Gerard Ryan said, "IPF has a resilient, cash generative business model and a well funded balance sheet. This, coupled with a strong underlying trading performance, supports the increase in the interim dividend and the £25M share buy-back programme that we have announced today. We are on track to perform well for the year as a whole, aim to deliver stronger growth and make our balance sheet work harder, and we have the strategy in place to do this."
The company noted that its key aim in 2012 is to use the levers of accelerated growth and consistent credit quality to offset the adverse impacts of higher early settlement rebates and weaker FX rates.
The company also lifted its interim dividend by 7.5 percent to 3.23 pence per share.
In London, IPF shares are currently trading at 241 pence, up 4.80 pence or 2.03 percent.
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by RTT Staff Writer
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