Woodford Pick Provident Financial Group Plummets

Provident Financial Group has issued a profits warning, an FCA investigation into retail arm Vanquis Bank and scrapped its interim dividend

Morningstar News Team 22 August, 2017 | 10:53AM

Subprime lender Provident Financial Group (PFG), a prominent holding of UK equity income fund manager Neil Woodford, saw its shares lose more than 60% on Tuesday morning.

The company issued a profits warning, an FCA investigation into retail arm Vanquis Bank, scrapped its interim dividend, and said that chief executive Peter Crook would leave with immediate effect. The company, which sells high-interest loans and credit cards to individuals with low credit scores, has had a turbulent year, with shares falling nearly 20% in June on an earlier profit warning.

Woodford defended his investment in the lender at the time, saying: “More often than not, the market over-reacts in response to bad news, even if the causes are only transitory. We believe that Provident’s dividend is unlikely to be affected by this temporary event and the long-term attractions of the group remain very much in place.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AstraZeneca PLC7,216.00 GBP0.00
Invesco High Income UK Inc250.99 GBP-0.30
Jupiter European Opportunities Ord631.08 GBP-1.09
LF Woodford Equity Income A Sterling Acc14.81 GBP-0.27
Provident Financial PLC171.90 GBP0.00

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