Provident Financial cuts 180 jobs

Mar 3 2010 by Peter McCusker, The Journal

SUB-PRIME lender Provident Financial says it has axed 180 jobs as it reported lower annual profits after recession-hit customers reined in their borrowing.

The Bradford-based group posted a 2.4% fall in pre-tax profits to £125.7m as it said demand for credit had been “tempered by increasingly cautious behaviour” and adverse weather at the end of last year – traditionally its peak lending season.

Provident axed 95 jobs after abandoning plans for a separate direct repayment loans business called Real Personal Finance, following a pilot last year. Another 85 jobs were also cut from its 900-strong head office workforce in Bradford to save costs.

Provident said rising unemployment saw households become less inclined to take on debts, a trend which is likely to continue this year.

Chairman John van Kuffeler said: “Cautious consumer behaviour is expected to persist through 2010, resulting in relatively modest growth in receivables.

“As a result, there will be a strong focus on cost efficiency.”