Provident Financial shares plummet after second profit warning in three months
SHARES in doorstep lender Provident Financial plunged by 66 per cent yesterday after a second profit warning in three months.
Provident Financial's shares have plummeted after the company was hit with another profit warning
Over £1.7 billion was wiped from the FTSE 100 firm’s market value after a disastrous business overhaul, replacing its 4,500 self-employed agents with 2,500 full-time employees.
It is missing 43 per cent of collections compared with 10 per cent last year.
Provident forecasts an £80 million - £12 0million annual pre-exceptional loss and has scrapped its dividend.
Chief executive Peter Crook, who earned £6.3 million in pay and bonuses last year, has stepped down.
Manjit Wolstenholme has taken the roll of executive chairman.
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In a statement to the stock market, Provident said the software had “presented some early issues”.
Ms Wolstenholme said it was too early to say why some “customer experience managers” were underperforming, but vowed to "work out why the hell that’s happening".
Over £1.7bn have been wiped off the firms market value
She said: “We seem to have lost something along the way in trying to be a bit too automated about it.
“We had a good business and we need to make sure we get back there.”