Half-year Report
Summary by AI BETAClose X
29 July 2026
International Personal Finance plc
Half-year financial report for the six months ended 30 June 2026
Principal activity
International Personal Finance ("IPF" or "the Group") is helping to build a better world through financial inclusion by providing affordable credit products and insurance services to underserved consumers across nine markets.
Good growth momentum and strategic progress continue
Key highlights
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Continued financial delivery with good growth and credit quality |
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· Group pre-exceptional profit before tax of £47.4m1 (H1-25: £49.9m1) is in line with our internal plan and reflects continued investment in growth. |
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· Customer numbers increased by 5% year on year to 1.7m, supported by good demand and our expanded product set. |
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· Customer lending and closing net receivables increased by 18%2 and 17%2 respectively, with all three divisions performing well. |
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· Robust customer repayment performance supported stable credit quality, with an impairment rate of 10.0% (H1-25: 8.3%), reflecting the stronger growth in customer lending, particularly in new channels. |
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Strong financial position to support future growth |
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· Headroom on undrawn funding facilities and non-operational cash balances of £107m, provides capacity to support further growth and ongoing investment in strategic initiatives. |
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· Equity to receivables ratio of 48% (H1-25: 53%) supports the Group's growth plans. |
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Next Gen strategy delivering growth, scale and operational efficiency |
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· More than 230,000 credit cards in use in Poland and pilot in Romania now in test phase. |
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· Continued expansion in Mexico with a new branch opening in the state of Nuevo León. · Retail finance available in 3,100 offline and online stores in Romania and Mexico. |
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Recommended acquisition by IPF Parent Holdings Limited ("Bidco") |
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· The requisite regulatory approvals and clearances have now been received. · Subject to the Scheme being sanctioned by the Court at the Sanction Hearing on 31 July 2026 and the Court Order being delivered to the Registrar of Companies, the Scheme is expected to become Effective on 4 August 2026. |
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· A special dividend of 15 pence per share has been declared, settlement of which is conditional upon the Final and Revised Offer being sanctioned by the Court. Subject to that condition, it will be paid to eligible shareholders no later than 14 days after the Effective Date. |
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Group key statistics |
H1-26 |
H1-25 |
YoY change |
|
|
Customer numbers (000s) |
1,743 |
1,653 |
5.4% |
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Customer lending (£m) |
781.7 |
622.0 |
18.5%2 |
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Closing net receivables (£m) |
1,169.9 |
937.8 |
17.4%2 |
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Pre-exceptional PBT (£m)1 |
47.4 |
49.9 |
(5.0%) |
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Statutory PBT (£m) |
42.8 |
49.9 |
(14.2%) |
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Pre-exceptional EPS (pence)1 |
13.3p |
14.2p |
(6.3%) |
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1 Prior to a pre-tax exceptional charge of £4.6m in H1-26 (H1-25: £nil) - see note 8 for details.
2 All growth rates for customer lending, receivables, revenue, impairment, costs and interest charges in this half-year financial report are stated on a constant exchange rate (CER) basis unless otherwise stated.
Gerard Ryan, Chief Executive Officer at IPF commented:
"We have delivered a good first half performance, with continued strong growth in customer numbers, lending and receivables, supported by robust demand for our products, disciplined execution and stable credit quality. Our Next Gen strategy continues to support the growth and development of the business. We are making good progress in broadening our product set, strengthening our digital capability and improving customer journeys, while investing in the channels and markets where we see attractive opportunities to scale.
The Group remains well positioned for the second half, supported by a strong balance sheet, a resilient funding position and clear strategic priorities. I would like to thank all our colleagues for their continued focus and commitment as we deliver sustainable growth and continue to build financial inclusion for our customers."
Alternative performance measures
This half-year financial report provides alternative performance measures (APMs) which are not defined or specified under the requirements of International Financial Reporting Standards. We believe these APMs provide stakeholders with important additional information on our business. To support this, we have included an accounting policy note on APMs in the notes to this financial report, a glossary indicating the APMs that we use, an explanation of how they are calculated and how we use them, and a reconciliation of the APMs we use to a statutory measure, where relevant.
Investor relations and media contact:
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Rachel Moran - Investor Relations |
+44 (0)7760 167637 |
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Georgia Dunn - Company Secretary |
+44 (0)7584 615230 |
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Investor and analyst webcast on demand
A presentation of the 2026 half-year results hosted by CEO Gerard Ryan and CFO Gary Thompson is available to view on demand here or at https://www.ipfin.co.uk/investors/results-and-reports.
A copy of this statement can be found on our website at www.ipfin.co.uk.
Legal Entity Identifier: 213800II1O44IRKUZB59
Chief Executive Officer's review
Group performance
I am pleased to report a good first-half performance, with strong growth momentum across the Group and further progress in delivering our Next Gen strategy. First half pre-exceptional profit before tax of £47.4m (H1-25: £49.9m) was in line with our internal plan and reflects our continued focus on meeting customer needs, disciplined operational execution and ongoing investment in accelerating our growth.
The rate of customer number growth continued to build, increasing by 5% year on year to 1.7 million. This was supported by good demand in all our markets, including from our new products and expanded distribution channels.
Group customer lending increased by 18% year on year in the first half of 2026. Provident Europe delivered particularly strong growth of 25%, driven mainly by Poland, where the transition of more customers from a one-year credit card product to a two-year proposition has enabled higher average credit limits whilst maintaining affordable repayments. IPF Digital and Provident Mexico also performed well, with lending growth of 12% and 9% respectively. The growth in customer lending drove a 17% increase in closing net receivables to £1,169.9m (H1-25: £937.8m), with all three divisions delivering double-digit year-on-year receivables growth.
Customer repayment performance remained robust across the Group, supporting stable credit quality as we continued to grow customer lending. As expected, the Group's annualised impairment rate increased to 10.0% at the half year (H1-25: 8.3%), primarily reflecting higher up-front IFRS 9 impairment charges associated with the growth in customer lending, particularly in new channels such as partnerships and short-term lending. Overall credit performance remains well controlled, underpinned by consistent customer repayment behaviour and our disciplined approach to sustainable lending growth.
Our balance sheet and funding position remain strong. Our headroom on debt facilities was £107m at the end of June and our equity to receivables ratio was 48% (H1-25: 53%), providing a robust platform to support our growth plans.
No interim dividend has been declared (H1-25: 3.8 pence per share), given the impending completion of the recommended acquisition of the Group by Bidco and the previously declared special dividend of 15 pence per share in connection with the acquisition.
Full details of the Group's financial performance are detailed in the financial review section.
Purpose and strategy
Our purpose remains to build a better world through financial inclusion by providing affordable, responsible credit to people who are often underserved by mainstream lenders. We serve more than 1.7 million customers across nine markets and our Next Gen strategy continues to support growth, improve our customer proposition and drive greater efficiency across the Group.
Next Gen financial inclusion
We are strengthening our customer proposition by expanding proven products, channels and experiences across markets, giving customers more choice while supporting growth and efficiency.
Our credit card business in Poland continued to gain momentum, with more than 230,000 active cards now in issue, and the success in Poland has supported the extension into Romania, where testing continues ahead of an expected full launch in the third quarter of 2026. Our retail finance partnerships model continued to scale, providing point-of-sale credit at more than 2,000 offline and online stores in Romania, and through more than 100 online merchants and over 1,000 physical outlets in Mexico. Alongside the continued development of our products and channels, we also expanded our geographic reach with the opening of the Apodaca Oriente branch, strengthening Provident Mexico's presence in Nuevo León. We also completed the acquisition of Express Cash, a small, but established home credit business in Czechia, strengthening our local market position and broadening access to credit to consumers in this market.
Next Gen organisation
We are continuing to build a more efficient and connected organisation, embracing change and adopting new technology to accelerate the execution of our strategy.
We are continuing to improve the experience of our 15,000-strong Customer Representatives community, who play a critical role in customer relationships, service quality and business performance. Through locally-tailored initiatives in Europe and Mexico, we are focusing on common priorities including role clarity, engagement, recognition and development, helping to improve retention, performance and outcomes for customers. Our focus on colleagues and communities was also reflected in our ninth Volunteer Month in May, delivered through 'Invisibles', our global community programme. More than 3,500 colleagues and Customer Representatives across our markets contributed over 7,000 volunteering hours and helped to raise €200,000 for community initiatives aligned with our purpose.
Next Gen technology and data
We are investing in technology and data to improve the customer experience, strengthen digital engagement and build more scalable platforms to support future growth.
We continued to enhance our digital customer proposition, with the launch of the ProviGo customer apps in Hungary and Czechia, and a planned rollout in Romania to support the launch of the new credit card in the third quarter. The apps, which complement our existing app in Poland, give customers secure, 24/7 access to key services and improves communication, while supporting more efficient customer interactions and higher engagement. In Mexico, we launched a major upgrade to our customer mobile app, with improved user experience, stronger security, enhanced resilience and a more scalable technology platform to support future digital services.
We also continue to explore the use of AI to improve the way we develop and deliver technology across the Group. By applying AI tools within software development, we are supporting faster delivery, improved efficiency and greater accuracy, helping us bring new digital capabilities to customers more quickly.
Regulatory update
The implementation of the Second Consumer Credit Directive (CCD II) continues to progress across the Group's European markets. Hungary has completed implementation and several other jurisdictions have now proposed implementation dates beyond the original EU timetable, reflecting the complexity of national legislative processes. As detailed implementing legislation continues to develop, the Group remains actively engaged with regulators, policymakers and industry bodies to help ensure that the resulting frameworks support responsible access to consumer credit. We continue to assess the impact of emerging national requirements and are progressing implementation activities across the business to ensure readiness as legislation comes into force.
On 23 April 2026, the Court of Justice of the European Union (CJEU) ruled in Case C‑744/2 that lenders may not charge interest on the portion of a consumer credit agreement used to finance credit-related fees, commissions and other ancillary costs. The judgment departs from the previously prevailing interpretation of Polish and EU consumer credit law, under which charging interest on financed credit-related costs was generally considered lawful. The Group is reviewing the implications with external legal advisors and updating relevant product terms prospectively. The ultimate impact, including any potential retrospective application, remains uncertain and no provision has been recognised as at 30 June 2026. Further detail is set out in note 21 Contingent Liabilities to the financial statements.
Recommended acquisition by Bidco
On 24 December 2025, the boards of IPF Parent Holdings Limited ("Bidco"), a newly formed company in the same group as BasePoint Capital LLC, and IPF announced that they had reached agreement on the terms of a recommended cash offer to be made by Bidco for the entire issued and to be issued ordinary share capital of IPF, to be implemented by way of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. On 25 February 2026, following engagement with shareholders, a final and revised offer was announced, under which shareholders would receive 235 pence in cash per IPF share and, subject to the Scheme being sanctioned by the Court, receive a special dividend of 15 pence per share, in addition to eligible shareholders retaining the final dividend declared in respect of the year ended 31 December 2025.
As announced on 11 March 2026, each of the resolutions in connection with the acquisition were approved by the requisite majorities of Scheme Shareholders and IPF Shareholders at the Court Meeting and General Meeting, and accordingly the Scheme was approved.
The requisite regulatory approvals and clearances have now been received, as announced on 3 July 2026. Completion of the acquisition remains subject to the satisfaction or, where applicable, waiver of the remaining conditions, including sanction of the Scheme by the Court at the Sanction Hearing on 31 July 2026 and delivery of the Court Order to the Registrar of Companies. A special dividend of 15 pence per share has been declared, settlement of which is conditional upon the Final and Revised Offer being sanctioned by the Court. Subject to that condition, it will be paid to eligible shareholders no later than 14 days after the Effective Date. Subject to the Scheme receiving the sanction of the Court and the delivery of a copy of the Court Order to the Registrar of Companies, the Effective Date of the Scheme is expected to be 4 August 2026.
Further announcements will be made following the Sanction Hearing and on the date the Scheme becomes Effective.
Outlook
We have continued to build on the positive start to the year, with good demand, robust credit quality and a strong balance sheet supporting further growth across our markets. Our Next Gen strategy is supporting growth through our expanded product set, broader distribution channels, enhanced customer journeys and increasing digital capability. We are also continuing to invest in key growth opportunities, particularly in Mexico and Australia. As previously communicated, we have decided to increase Group-wide investment in product development and customer acquisition initiatives by approximately £5m per annum over the next two to three years. While this may impact returns in 2026 and 2027, we expect it to support further sustainable growth over the medium term.
We remain confident in our ability to deliver against the operational and financial plans we have in place, underpinned by prudent risk management and a strong capital position. Looking ahead, we are well positioned to continue making progress against our long-term purpose of increasing financial inclusion, while delivering attractive and sustainable returns.
Financial review
Group
The Group delivered a good financial performance in the first half of 2026, reflecting the disciplined execution of our Next Gen strategy, strong growth in customer lending and robust credit quality. In line with our internal plans, pre-exceptional profit before tax reduced by 5.0% on a reported basis and 13.5% on a CER basis, to £47.4m (H1-25: £49.9m), reflecting the expected up-front IFRS 9 impairment impact of stronger customer lending growth and continued investment in growth initiatives across the Group.
An analysis of the divisional results is shown below:
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|
H1-26 £m |
H1-25 £m |
Change £m |
Change % |
|
Provident Europe |
35.3 |
35.9 |
(0.6) |
(1.7%) |
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Provident Mexico |
16.4 |
14.4 |
2.0 |
13.9% |
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IPF Digital |
2.6 |
6.9 |
(4.3) |
(62.3%) |
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Central costs |
(6.9) |
(7.3) |
0.4 |
5.5% |
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Pre-exceptional profit before taxation |
47.4 |
49.9 |
(2.5) |
(5.0%) |
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Exceptional items |
(4.6) |
- |
(4.6) |
n/a |
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Profit before taxation |
42.8 |
49.9 |
(7.1) |
(14.2%) |
The first half result includes an exceptional one-off cost of £4.6m (H1-25: £nil) comprising: (i) £3.3m in respect of the reorganisation of our operations in Czechia where we acquired Express Cash, a small home credit competitor, and closed our digital business; and (ii) transaction-related costs of £1.3m. Statutory profit before tax was therefore £42.8m (H1-25: £49.9m).
The detailed income statement of the Group, together with associated KPIs, is set out below:
|
|
H1-26 £m |
H1-25 £m |
Change £m |
Change % |
Change at CER % |
|
Customer numbers (000s) |
1,743 |
1,653 |
90 |
5.4% |
5.4% |
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Customer lending |
781.7 |
622.0 |
159.7 |
25.7% |
18.5% |
|
Average gross receivables |
1,543.5 |
1,318.6 |
224.9 |
17.1% |
11.4% |
|
Closing net receivables |
1,169.9 |
937.8 |
232.1 |
24.7% |
17.4% |
|
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Revenue |
413.2 |
347.8 |
65.4 |
18.8% |
10.7% |
|
Impairment |
(73.6) |
(46.3) |
(27.3) |
(59.0%) |
(42.0%) |
|
Revenue less impairment |
339.6 |
301.5 |
38.1 |
12.6% |
5.7% |
|
Costs |
(250.9) |
(216.8) |
(34.1) |
(15.7%) |
(9.3%) |
|
Interest expense |
(41.3) |
(34.8) |
(6.5) |
(18.7%) |
(11.6%) |
|
Pre-exceptional profit before taxation |
47.4 |
49.9 |
(2.5) |
(5.0%) |
|
|
Exceptional items |
(4.6) |
- |
(4.6) |
n/a |
|
|
Profit before taxation |
42.8 |
49.9 |
(7.1) |
(14.2%) |
|
|
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Annualised revenue yield |
52.0% |
53.3% |
(1.3)ppts |
|
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Annualised impairment rate |
10.0% |
8.3% |
(1.7)ppts |
|
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Annualised cost-income ratio |
60.4% |
61.9% |
1.5 ppts |
|
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Pre-exceptional EPS-1 |
13.3p |
14.2p |
(6.3%) |
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Annualised pre-exceptional RoRE1,2 |
12.9% |
15.4% |
(2.5)ppts |
|
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Annualised RoE |
9.1% |
14.7% |
(5.6)ppts |
|
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1 Prior to a pre-tax exceptional charge of £4.6m (H1-25: £nil) - see note 8 for details.
2 Based on required equity to receivables of 40%.
Customer lending increased by 18.5% year on year, with good growth achieved by all three divisions. This reflected consistent demand for credit, disciplined operational execution and the benefits of our broader product proposition, including credit cards, retail partnerships, digital hybrid loans and shorter-term lending, which are increasing customer choice and supporting sustainable receivables growth. Group customer numbers also continued the good momentum from the second half of last year, increasing by 5.4% to 1.7m, demonstrating the appeal of both our established and newer products.
Group net receivables increased to £1,169.9m, representing year-on-year growth of 17.4%. This reflected the strong growth in customer lending during the first half, with all three divisions delivering double-digit receivables growth.
Our financial model is designed to deliver sustainable returns by optimising three core value drivers - revenue yield, credit performance and operational efficiency - and we remain firmly focused on managing these levers to support delivery of our growth ambitions and drive long-term shareholder value.
The Group's annualised revenue yield reduced by 1.3ppts to 52.0%, reflecting the strong growth in lending in Poland, which has a lower relative yield than our other Provident Europe markets, together with the effect of lower central bank base rates in our markets. Over time, we expect the continued mix shift towards higher-yielding products in Mexico and newer channels will support a gradual improvement in the Group revenue yield towards our target range of 54% to 56%.
Customer repayment performance remained robust across the Group, supporting stable credit quality in the first half. As expected, the annualised impairment rate increased by 1.7ppts to 10.0%, primarily reflecting the higher up-front IFRS 9 impairment charges associated with strong customer lending growth in our new channels. As we continue to grow the portfolio, we expect the Group impairment rate to move gradually towards our target range of between 14% and 16% over the next two years. Stable credit quality has meant the impairment coverage provision has remained broadly unchanged at 30.9% at the end of the first half (December 2025: 31.1%).
Costs increased by 9.3% compared with average receivables growth of 11.4%, as we continued to focus on disciplined cost management whilst investing in customer acquisition and strategic capabilities to support sustainable growth. As previously announced, we are investing an additional £5m per annum in new growth initiatives in both 2026 and 2027, and we continue to manage this carefully alongside our wider cost base. The Group's annualised cost-income ratio improved by 1.5ppts to 60.4% (H1-25: 61.9%), supported by revenue growth and increasing scale benefits. While the ratio remains above our medium-term target range of 49% to 51%, the underlying trajectory is positive and we expect further progress as the benefits of growth and operational leverage are realised.
As expected, the annualised pre-exceptional RoRE moderated year on year to 12.9% (H1-25: 15.4%). This is below our target range of 15% to 20% and reflects our decision to invest in the acceleration of growth to capture the long-term growth opportunities available to the Group. We expect the RoRE to remain below target in 2026 and 2027 before returning to target levels in 2028. The Group's annualised RoE, based on actual equity, reduced similarly to 9.1% (H1-25: 14.7%).
Pre-exceptional earnings per share reduced by 6.3% year on year to 13.3 pence (H1-25: 14.2 pence), reflecting the reduction in profits from the investment in growth. After taking account of the exceptional items in the first half, statutory earnings per share was 11.5 pence (H1-25: 14.2 pence).
Divisional performance
Provident Europe
|
|
H1-26 £m |
H1-25 £m |
Change £m |
Change % |
Change at CER % |
|
Customer numbers (000s) |
737 |
711 |
26 |
3.7% |
3.7% |
|
Customer lending |
459.3 |
351.7 |
107.6 |
30.6% |
24.8% |
|
Average gross receivables |
829.2 |
707.5 |
121.7 |
17.2% |
11.4% |
|
Closing net receivables |
648.9 |
502.1 |
146.8 |
29.2% |
23.4% |
|
|
|
|
|
|
|
|
Revenue |
186.5 |
160.6 |
25.9 |
16.1% |
10.2% |
|
Impairment |
(3.3) |
6.0 |
(9.3) |
155.0% |
154.1% |
|
Revenue less impairment |
183.2 |
166.6 |
16.6 |
10.0% |
4.4% |
|
Costs |
(125.6) |
(111.5) |
(14.1) |
(12.6%) |
(7.8%) |
|
Interest expense |
(22.3) |
(19.2) |
(3.1) |
(16.1%) |
(10.4%) |
|
Profit before taxation |
35.3 |
35.9 |
(0.6) |
(1.7%) |
|
|
|
|
|
|
|
|
|
Annualised revenue yield |
44.1% |
45.6% |
(1.5)ppts |
|
|
|
Annualised impairment rate |
1.8% |
(0.5%) |
(2.3)ppts |
|
|
|
Annualised cost-income ratio |
67.3% |
69.6% |
2.3ppts |
|
|
|
Annualised RoRE1 |
17.2% |
21.2% |
(4.0)ppts |
|
|
1 Based on required equity to receivables of 40%.
Provident Europe delivered a robust financial performance in the first half, with profit before tax remaining broadly stable at £35.3m (H1-25: £35.9m), notwithstanding absorbing the adverse short-term impact from a significant increase in lending, particularly in Poland. The result reflects disciplined execution of our Next Gen strategy, good operational discipline and continued robust credit quality across the division. In addition, the Group completed the acquisition of Express Cash, a small home credit lender in Czechia, for £5m in May. The acquisition added 13,000 customers and receivables of £12m to Provident Europe.
We delivered a significant step up in customer lending of 24.8% in the first half. Whilst all markets delivered increased lending, Poland was the main driver, with growth of 50% following the launch of a new two-year credit card product which allows higher credit limits than the previous one-year card whilst maintaining affordable repayments over a longer term for customers.
Closing net receivables increased by 23.4% to £648.9m (H1-25: £502.1m), reflecting strong portfolio growth across the division. This included growth of 33% in Poland, 16% in Romania and 14% in Hungary. Czechia receivables grew by 42%, with approximately half being delivered through organic growth and the remainder through the acquisition of Express Cash.
Customer numbers increased by 3.7% to 737,000, with half of the growth being delivered through organic growth, mainly in Poland and Romania.
The annualised revenue yield reduced by 1.5 ppts to 44.1% (H1-25: 45.6%). This reflects the strong growth in receivables in Poland, which has a lower relative yield (and lower impairment rate), compared with the other three European markets.
Customer repayment behaviour remained robust across Provident Europe, supporting continued stable credit quality. As expected, customer lending growth and the associated up-front IFRS 9 impairment charges resulted in a 2.3ppt increase in the annualised impairment rate to 1.8% (H1-25: (0.5%)). The impairment rate remains well below Provident Europe's medium-term target range of 8% to 10%, reflecting continued strong debt sale markets and improvements in long-term cash flow forecasts based on collections experience in recent years.
Increased scale and disciplined cost management resulted in a 7.8% increase in costs compared with average receivables growth of 11.4%, despite the continued additional investment in activities that support growth. These factors contributed to a 2.3ppt improvement in the annualised cost-income ratio to 67.3% (H1-25: 69.6%).
Provident Europe continued to deliver attractive returns, with an annualised RoRE of 17.2% (H1-25: 21.2%). The 4.0ppt reduction reflects our investment in receivables growth, particularly in Poland, where we continue to scale the credit card proposition and receivables book. Over the medium term, we expect returns to improve back to around 20% as greater scale benefits are realised.
Provident Mexico
|
|
H1-26 £m |
H1-25 £m |
Change £m |
Change % |
Change at CER % |
|
|
Customer numbers (000s) |
714 |
683 |
31 |
4.5% |
4.5% |
|
|
Customer lending |
159.3 |
132.6 |
26.7 |
20.1% |
8.8% |
|
|
Average gross receivables |
327.8 |
284.3 |
43.5 |
15.3% |
8.8% |
|
|
Closing net receivables |
210.4 |
167.8 |
42.6 |
25.4% |
11.5% |
|
|
|
|
|
|
|
|
|
|
Revenue |
142.1 |
116.0 |
26.1 |
22.5% |
10.8% |
|
|
Impairment |
(44.8) |
(34.2) |
(10.6) |
(31.0%) |
(18.2%) |
|
|
Revenue less impairment |
97.3 |
81.8 |
15.5 |
18.9% |
7.8% |
|
|
Costs |
(72.8) |
(60.9) |
(11.9) |
(19.5%) |
(8.8%) |
|
|
Interest expense |
(8.1) |
(6.5) |
(1.6) |
(24.6%) |
(12.5%) |
|
|
Reported profit before taxation |
16.4 |
14.4 |
2.0 |
13.9% |
|
|
|
|
|
|
|
|
|
|
|
Annualised revenue yield |
83.4% |
84.4% |
(1.0)ppts |
|
|
|
|
Annualised impairment rate |
27.7% |
28.8% |
1.1ppts |
|
|
|
|
Annualised cost-income ratio |
50.7% |
50.7% |
- |
|
|
|
|
Annualised RoRE1 |
23.9% |
20.4% |
3.5ppts |
|
|
|
1 Based on required equity to receivables of 40%.
Provident Mexico delivered a very good first-half financial performance, with profit before tax increasing by £2.0m (or 13.9% on a reported basis) to £16.4m, supported by good customer growth and improved lending momentum.
Customer lending increased by 8.8% while customer numbers grew by 4.5% to 714,000. This performance reflects good demand for our customer proposition, continued strong operational discipline and the benefit from ongoing geographic expansion.
Closing net receivables increased by 11.5% to £210.4m, supported by the strong growth in customer lending over the last 12 months. The annualised revenue yield moderated slightly to 83.4% (H1-25: 84.4%), primarily reflecting a greater proportion of lending to existing customers. These loans are typically higher value and longer duration, resulting in a lower yield but stronger credit performance compared with lending to new customers.
The annualised impairment rate improved by 1.1ppts to 27.7% (H1-25: 28.8%), reflecting the increased proportion of lending to good-quality existing customers and actions taken to strengthen lending quality and customer repayment performance.
We continued to invest in strengthening our customer proposition and expanding our geographic reach, including the opening of a further branch during the first half. Despite this investment, the annualised cost-income ratio remained stable at 50.7% (H1-25: 50.7%), in line with our target range of 49% to 51%.
Provident Mexico continued to deliver strong returns, with the annualised RoRE increasing by 3.5ppts year on year to 23.9% (H1-25: 20.4%). This remains above the Group's target range of 15% to 20%, reflecting the division's strong profitability and disciplined capital deployment.
IPF Digital
|
|
H1-26 £m |
H1-25 £m |
Change £m |
Change % |
Change at CER % |
|
Customer numbers (000s) |
292 |
259 |
33 |
12.7% |
12.7% |
|
Customer lending |
163.1 |
137.7 |
25.4 |
18.4% |
12.2% |
|
Average gross receivables |
386.5 |
326.8 |
59.7 |
18.3% |
13.7% |
|
Closing net receivables |
310.6 |
267.9 |
42.7 |
15.9% |
10.3% |
|
|
|
|
|
|
|
|
Revenue |
84.6 |
71.2 |
13.4 |
18.8% |
11.9% |
|
Impairment |
(25.5) |
(18.1) |
(7.4) |
(40.9%) |
(28.1%) |
|
Revenue less impairment |
59.1 |
53.1 |
6.0 |
11.3% |
6.1% |
|
Costs |
(45.6) |
(37.2) |
(8.4) |
(22.6%) |
(16.9%) |
|
Interest expense |
(10.9) |
(9.0) |
(1.9) |
(21.1%) |
(14.7%) |
|
Pre-exceptional profit before taxation1 |
2.6 |
6.9 |
(4.3) |
(62.3%) |
|
|
|
|
|
|
|
|
|
Annualised revenue yield |
42.4% |
42.7% |
(0.3)ppts |
|
|
|
Annualised impairment rate |
12.5% |
9.5% |
(3.0)ppts |
|
|
|
Annualised cost-income ratio |
52.3% |
52.5% |
0.2ppts |
|
|
|
Annualised pre-exceptional RoRE1,2 |
5.4% |
10.6% |
(5.2)ppts |
|
|
1 Before exceptional costs of £3.3m in the first half of 2026 (H1-25: £nil) associated with the closure of our digital business in Czechia.
2 Based on required equity to receivables of 40%.
IPF Digital continued to deliver good growth in customer numbers and lending during the first half, as we invested in growth to increase scale and deliver our target returns. Profit before tax reduced to £2.6m (H1-25: £6.9m), reflecting the investment in growing short-term lending and retail partnerships in Mexico, the ongoing cost of brand building in Australia and the short-term impairment impact of accelerating lending growth in Poland.
Customer appetite for digital credit remained robust, supporting year-on-year growth in customer numbers of 13%, with Mexico delivering 26% growth, Australia 15% and Poland 10%. Lending grew by a similar amount of 12%, albeit the composition was different, with Poland delivering very strong growth of 40%, Australia 14% and Mexico 10%.
Closing net receivables increased by 10.3% to £310.6m (H1-25: £267.9m). Poland and Australia were the standout performers, delivering growth of 27% and 18% respectively, whilst the Baltic markets delivered solid growth of 6%. The rate of receivables growth in Mexico was lower than expected at 5%, as the mix of lending in the first half was weighted more towards the newer short-term lending and retail partnership channels where loan sizes are much smaller and credit quality is generally lower in the early stages of developing and refining credit scorecards.
The annualised revenue yield moderated by 0.3 ppts year on year to 42.4% (H1-25: 42.7%), as a result of the growth in lower yielding Polish and Australian receivables.
The annualised impairment rate increased to 12.5% (H1-25: 9.5%) in the first half, reflecting portfolio growth and a higher rate of impairment in Mexico due to the aforementioned growth in short-term loans and retail partnerships.
We continued to invest in IPF Digital's growth with targeted spend on brand development, customer acquisition and technology enhancements, particularly in Mexico and Australia. These investments support our ambition to build scale in attractive digital credit markets and contributed to a 17% year-on-year increase in operating costs. As a result, the annualised cost-income ratio remained broadly stable at 52.3% (H1-25: 52.5%).
IPF Digital's annualised RoRE reduced to 5.4% (H1-25: 10.6%), due to the continued investment in customer number and lending growth during the first half. While returns remain below the Group's 15% to 20% target range, we expect improvement over time as the division builds scale, matures its customer base and benefits from further development of its digital proposition across multiple markets.
As part of the reorganisation of the Group's operations in Czechia, we took the decision in May to close the small Creditea digital lending business, which currently serves 7,000 customers and has net receivables of £7m.
Taxation
The pre-exceptional tax charge on the profit for the first half of the year has been based on an expected tax rate for the full year of approximately 38% (H1-25: 38%).
An exceptional tax credit of £0.4m has been reflected in the first half in respect of exceptional costs of £4.6m.
Funding and balance sheet
We have continued to maintain a conservatively capitalised balance sheet and a strong funding position.
As at 30 June 2026, the Group held total debt facilities of £820m, comprising £552m in bonds and £268m in bank funding. Net borrowings at the end of the first half totalled £713m and the Group has funding headroom of £107m.
In April 2026, we strengthened the Group's funding position with the successful pricing of SEK 950 million senior unsecured floating rate notes due 10 November 2028. The notes were issued at a price of 100.75% and the coupon of three-month STIBOR plus 5.75 per cent. The notes will be consolidated to form a single series with the existing SEK 1,000 million senior unsecured floating rate notes issued on 10 November 2025. The issuance was initiated by a reverse enquiry and attracted good investor demand, further supporting the Group's growth plans and delivery of our Next Gen strategy.
Our blended cost of funding was 12.0% in the first half (H1-25: 12.5%), benefitting from the reduction in interest rates across our markets as well as lower costs of hedging as interest differentials narrowed.
Both Fitch Ratings and Moody's Ratings reviewed the Group's long-term credit ratings over the last 12 months and reaffirmed their previous assessments and both agencies maintained IPF ratings at BB, Stable outlook in the case of Fitch, and Ba3, Stable outlook in the case of Moody's.
At the end of June, the Group's equity to receivables ratio was 48%, a further reduction from 51% at December 2025 (H1-25: 53%). The reduction primarily reflects the strong growth in receivables of over £100m in the last 6 months together with returns being lower than our target of 15% to 20%. Our strong capital position supports the Group's ambitious growth plans through to the point at which we are delivering management's target returns and operating in line with our financial model which we expect to be in 2028.
The Group's gearing ratio was 1.3 times (H1-25: 1.2 times) at the end of June and is well within our covenant limit of 3.75 times. Our interest cover covenant was 2.5 times (H1-25: 2.7 times) and, again, is well within our covenant limit of 2.0 times.
Financial statements
Consolidated income statement
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
Six months ended |
Six months ended |
Year ended |
|
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
£m |
£m |
£m |
|
Revenue |
3 |
413.2 |
347.8 |
737.5 |
|
Impairment |
3 |
(73.6) |
(46.3) |
(126.8) |
|
Revenue less impairment |
|
339.6 |
301.5 |
610.7 |
|
|
|
|
|
|
|
Interest expense |
4 |
(41.3) |
(34.8) |
(71.3) |
|
Other operating costs |
|
(78.0) |
(65.0) |
(137.9) |
|
Administrative expenses |
|
(172.9) |
(151.8) |
(312.9) |
|
|
|
(292.2) |
(251.6) |
(522.1) |
|
|
|
|
|
|
|
Pre-exceptional profit before taxation |
3 |
47.4 |
49.9 |
88.6 |
|
Exceptional items |
8 |
(4.6) |
- |
(3.3) |
|
Profit before taxation |
|
42.8 |
49.9 |
85.3 |
|
Pre-exceptional tax (expense)/income |
|
|
|
|
|
- UK |
|
- |
- |
1.5 |
|
- Overseas |
|
(18.0) |
(18.9) |
(32.6) |
|
Pre-exceptional tax expense |
5 |
(18.0) |
(18.9) |
(31.1) |
|
Exceptional tax credit |
8 |
0.4 |
- |
- |
|
Total tax expense |
|
(17.6) |
(18.9) |
(31.1) |
|
Profit after taxation attributable to equity shareholders |
|
25.2 |
31.0 |
54.2 |
The notes to the financial information are an integral part of these condensed consolidated interim financial statements.
Earnings per share - statutory
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
Six months ended |
Six months ended |
Year ended |
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
pence |
pence |
Pence |
|
Basic |
6 |
11.5 |
14.2 |
24.8 |
|
Diluted |
6 |
10.9 |
13.5 |
23.6 |
Earnings per share - pre-exceptional items
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
Six months ended |
Six months ended |
Year ended |
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
|
pence |
pence |
pence |
|
Basic |
|
13.3 |
14.2 |
26.3 |
|
Diluted |
|
12.7 |
13.5 |
25.0 |
Dividend per share
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
Six months ended |
Six months ended |
Year ended |
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
pence |
pence |
pence |
|
Interim dividend |
7 |
- |
3.8 |
3.8 |
|
Final dividend |
7 |
- |
- |
9.0 |
|
Total dividend |
|
- |
3.8 |
12.8 |
Dividends paid
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
Six months ended |
Six months ended |
Year ended |
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
£m |
£m |
£m |
|
Interim dividend of nil pence (2025: interim dividend of 3.8 pence) per share |
7 |
- |
- |
8.3 |
|
Final 2025 dividend of 9.0 pence (2025: final 2024 dividend of 8.0 pence) per share |
7 |
19.8 |
17.5 |
17.5 |
|
Total dividends paid |
|
19.8 |
17.5 |
25.8 |
Consolidated statement of comprehensive income
|
|
Unaudited |
Unaudited |
Audited |
|
|
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Year ended 31 December 2025 |
|
|
£m |
£m |
£m |
|
Profit after taxation attributable to equity shareholders |
25.2 |
31.0 |
54.2 |
|
Other comprehensive income/(expense) |
|
|
|
|
Items that may subsequently be reclassified to income statement |
|
|
|
|
Exchange gains on foreign currency translations |
7.9 |
19.2 |
46.9 |
|
Net fair value gains - cash flow hedges |
0.5 |
0.6 |
0.2 |
|
Tax charge on items that may be reclassified |
- |
- |
(0.1) |
|
Items that will not subsequently be reclassified to income statement |
|
|
|
|
Actuarial (losses)/gains on retirement benefit asset |
(0.1) |
0.1 |
0.4 |
|
Tax charge on items that will not be reclassified |
- |
- |
(0.1) |
|
Other comprehensive income net of taxation |
8.3 |
19.9 |
47.3 |
|
Total comprehensive income for the period attributable to equity shareholders |
33.5 |
50.9 |
101.5 |
Consolidated balance sheet
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Notes |
£m |
£m |
£m |
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Goodwill |
9 |
24.6 |
23.3 |
23.8 |
|
Intangible assets |
10 |
58.5 |
42.4 |
52.7 |
|
Property, plant and equipment |
11 |
16.4 |
13.5 |
16.3 |
|
Right-of-use assets |
12 |
18.9 |
19.7 |
20.5 |
|
Amounts receivable from customers |
14 |
337.8 |
263.7 |
291.1 |
|
Deferred tax assets |
13 |
110.0 |
108.7 |
107.4 |
|
Retirement benefit asset |
17 |
5.0 |
4.6 |
5.0 |
|
|
|
571.2 |
475.9 |
516.8 |
|
Current assets |
|
|
|
|
|
Amounts receivable from customers |
14 |
832.1 |
674.1 |
770.2 |
|
Derivative financial instruments |
|
0.6 |
3.6 |
1.5 |
|
Cash and cash equivalents |
|
22.9 |
38.0 |
30.4 |
|
Other receivables |
|
22.0 |
18.1 |
15.5 |
|
Current tax assets |
|
2.9 |
16.1 |
2.9 |
|
|
|
880.5 |
749.9 |
820.5 |
|
Total assets |
3 |
1,451.7 |
1,225.8 |
1,337.3 |
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Borrowings |
16 |
(78.0) |
(84.2) |
(58.9) |
|
Derivative financial instruments |
|
(5.4) |
(1.1) |
(4.0) |
|
Trade and other payables |
|
(138.1) |
(118.0) |
(133.4) |
|
Lease liabilities |
12 |
(8.8) |
(7.7) |
(8.4) |
|
Current tax liabilities |
|
(11.9) |
(13.9) |
(9.5) |
|
|
|
(242.2) |
(224.9) |
(214.2) |
|
Non-current liabilities |
|
|
|
|
|
Deferred tax liabilities |
|
(4.1) |
(4.1) |
(4.1) |
|
Lease liabilities |
12 |
(12.4) |
(13.8) |
(14.2) |
|
Borrowings |
16 |
(631.9) |
(481.4) |
(558.8) |
|
|
|
(648.4) |
(499.3) |
(577.1) |
|
Total liabilities |
3 |
(890.6) |
(724.2) |
(791.3) |
|
Net assets |
|
561.1 |
501.6 |
546.0 |
|
Equity attributable to owners of the Company |
|
|
|
|
|
Called-up share capital |
|
22.5 |
22.5 |
22.5 |
|
Other reserve |
|
(22.5) |
(22.5) |
(22.5) |
|
Foreign exchange reserve |
|
29.5 |
(6.1) |
21.6 |
|
Hedging reserve |
|
0.5 |
0.5 |
- |
|
Own shares |
|
(4.3) |
(18.3) |
(15.4) |
|
Capital redemption reserve |
|
3.2 |
3.2 |
3.2 |
|
Retained earnings |
|
532.2 |
522.3 |
536.6 |
|
Total equity |
|
561.1 |
501.6 |
546.0 |
Consolidated statement of changes in equity
|
|
Unaudited |
|
|||||||
|
|
Called-up share capital £m |
Other reserve £m |
*Other reserves £m |
Retained earnings £m |
Total equity £m |
|
|||
|
At 1 January 2025 |
22.5 |
(22.5) |
(47.1) |
513.4 |
466.3 |
|
|||
|
Comprehensive income: |
|
|
|
|
|
|
|||
|
Profit after taxation for the period |
- |
- |
- |
31.0 |
31.0 |
|
|||
|
Other comprehensive income: |
|
|
|
|
|
|
|||
|
Exchange gains on foreign currency translation (note 20) |
- |
- |
19.2 |
- |
19.2 |
|
|||
|
Net fair value gains - cash flow hedges |
- |
- |
0.6 |
- |
0.6 |
|
|||
|
Actuarial gain on retirement benefit asset |
- |
- |
- |
0.1 |
0.1 |
|
|||
|
Total other comprehensive income |
- |
- |
19.8 |
0.1 |
19.9 |
|
|||
|
Total comprehensive income for the period |
- |
- |
19.8 |
31.1 |
50.9 |
|
|||
|
Transactions with owners: |
|
|
|
|
|
|
|||
|
Share-based payment adjustment to reserves |
- |
- |
- |
1.9 |
1.9 |
|
|||
|
Shares granted from treasury and employee trust |
- |
- |
6.6 |
(6.6) |
- |
|
|||
|
Dividends paid to Company shareholders |
- |
- |
- |
(17.5) |
(17.5) |
|
|||
|
At 30 June 2025 |
22.5 |
(22.5) |
(20.7) |
522.3 |
501.6 |
|
|||
|
|
Audited |
|
|
|
|
|
|||
|
At 1 January 2025 |
22.5 |
(22.5) |
(47.1) |
513.4 |
466.3 |
|
|||
|
Comprehensive income: |
|
|
|
|
|
||||
|
Profit after taxation for the year |
- |
- |
- |
54.2 |
54.2 |
|
|||
|
Other comprehensive income/(expense): |
|
|
|
|
|
|
|||
|
Exchange gains on foreign currency translation (note 20) |
- |
- |
46.9 |
- |
46.9 |
|
|||
|
Net fair value gains - cash flow hedges |
- |
- |
0.2 |
- |
0.2 |
|
|||
|
Actuarial gain on retirement benefit obligation |
- |
- |
- |
0.4 |
0.4 |
|
|||
|
Tax charge on other comprehensive income |
- |
- |
(0.1) |
(0.1) |
(0.2) |
|
|||
|
Total other comprehensive income |
- |
- |
47.0 |
0.3 |
47.3 |
|
|||
|
Total comprehensive income for the year |
- |
- |
47.0 |
54.5 |
101.5 |
|
|||
|
Transactions with owners: |
|
|
|
|
|
|
|||
|
Share-based payment adjustment to reserves |
- |
- |
- |
3.5 |
3.5 |
|
|||
|
Deferred tax on share-based payment transactions |
- |
- |
- |
0.5 |
0.5 |
|
|||
|
Shares granted from treasury and employee trust |
- |
- |
9.5 |
(9.5) |
- |
|
|||
|
Dividends paid to Company shareholders |
- |
- |
- |
(25.8) |
(25.8) |
|
|||
|
At 31 December 2025 |
22.5 |
(22.5) |
9.4 |
536.6 |
546.0 |
|
|||
Consolidated statement of changes in equity (continued)
|
|
Unaudited |
||||
|
|
Called-up share capital £m |
Other reserve £m |
*Other reserves £m |
Retained earnings £m |
Total equity £m |
|
At 1 January 2026 |
22.5 |
(22.5) |
9.4 |
536.6 |
546.0 |
|
Comprehensive income: |
|
|
|
|
|
|
Profit after taxation for the period |
- |
- |
- |
25.2 |
25.2 |
|
Other comprehensive income/(expense): |
|
|
|
|
|
|
Exchange gains on foreign currency translation (note 20) |
- |
- |
7.9 |
- |
7.9 |
|
Net fair value gains - cash flow hedges |
- |
- |
0.5 |
- |
0.5 |
|
Actuarial loss on retirement benefit asset |
- |
- |
- |
(0.1) |
(0.1) |
|
Total other comprehensive income/(expense) |
- |
- |
8.4 |
(0.1) |
8.3 |
|
Total comprehensive income for the period |
- |
- |
8.4 |
25.1 |
33.5 |
|
Transactions with owners: |
|
|
|
|
|
|
Share-based payment adjustment to reserves |
- |
- |
- |
1.4 |
1.4 |
|
Shares granted from treasury and employee trust |
- |
- |
11.1 |
(11.1) |
- |
|
Dividends paid to Company shareholders |
- |
- |
- |
(19.8) |
(19.8) |
|
At 30 June 2026 |
22.5 |
(22.5) |
28.9 |
532.2 |
561.1 |
* Includes foreign exchange reserve, hedging reserve, own shares and capital redemption reserve.
Consolidated cash flow statement
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Year ended 31 December 2025 |
|
|
Notes |
£m |
£m |
£m |
|
Cash flows from operating activities |
|
|
|
|
|
Cash generated from operating activities |
19 |
21.2 |
51.9 |
69.8 |
|
Finance costs paid Finance income received |
|
(38.2) - |
(36.1) 0.2 |
(69.7) 2.0 |
|
Income tax paid |
|
(15.1) |
(10.9) |
(21.8) |
|
Repayment in respect of State Aid |
|
- |
- |
15.2 |
|
Net cash (used in)/generated by operating activities |
|
(32.1) |
5.1 |
(4.5) |
|
|
|
|
|
|
|
Cash flows used in investing activities |
|
|
|
|
|
Acquisition of Express Cash |
15 |
(5.2) |
- |
- |
|
Purchases of intangible assets |
10 |
(14.9) |
(11.1) |
(27.8) |
|
Purchases of property, plant and equipment |
11 |
(2.1) |
(2.2) |
(7.4) |
|
Net cash used in investing activities |
|
(22.2) |
(13.3) |
(35.2) |
|
Net cash used in operating and investing activities |
|
(54.3) |
(8.2) |
(39.7) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Proceeds from borrowings |
|
109.0 |
99.5 |
140.0 |
|
Repayment of borrowings |
|
(36.8) |
(57.7) |
(61.2) |
|
Principal elements of lease payments |
12 |
(6.2) |
(6.3) |
(12.8) |
|
Dividends paid to equity shareholders |
|
(19.8) |
(17.5) |
(25.8) |
|
Cash received on share options exercised |
|
- |
- |
0.5 |
|
Net cash generated from financing activities |
|
46.2 |
18.0 |
40.7 |
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
|
(8.1) |
9.8 |
1.0 |
|
Cash and cash equivalents at beginning of period |
|
30.4 |
27.6 |
27.6 |
|
Exchange gains on cash and cash equivalents |
|
0.6 |
0.6 |
1.8 |
|
Cash and cash equivalents at end of period |
|
22.9 |
38.0 |
30.4 |
Notes to the condensed consolidated interim financial statements
1. Basis of preparation
These unaudited condensed consolidated interim financial statements for the six months ended 30 June 2026 have been prepared in accordance with the Disclosure and Transparency Rules (DTR) of the Financial Conduct Authority and with International Accounting Standard (IAS) 34 'Interim Financial Reporting' as adopted by the United Kingdom. These condensed consolidated interim financial statements should be read in conjunction with the Annual Report and Financial Statements ('the Financial Statements') for the year ended 31 December 2025, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. These condensed consolidated interim financial statements were approved for release on 29 July 2026.
These condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. The Financial Statements for the year ended 31 December 2025 were approved by the Board on 25 February 2026 and delivered to the Registrar of Companies. The Financial Statements contained an unqualified audit report and did not include an emphasis of matter paragraph or any statement under Section 498 of the Companies Act 2006. The Financial Statements are available on the Group's website (www.ipfin.co.uk).
The accounting policies applied to prepare these condensed consolidated interim financial statements are consistent with those applied to the most recent full year Financial Statements for the year ended 31 December 2025.
The following amendments to standards are mandatory for the first time for the financial year beginning 1 January 2026 but do not have any material impact on the Group:
· Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: 'Disclosures: Classification and Measurement of Financial Instruments'
· Annual Improvements to IFRS standards - Volume 11
· Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature-Dependent Electricity
The following standards, interpretations and amendments to existing standards are not yet effective and have not been early adopted by the Group:
· IFRS S1 'General Requirements for Disclosure of Sustainability-related Financial Information'
· IFRS S2 'Climate-related Disclosures'
· IFRS 18 'Presentation and Disclosure in Financial Statements'
· IFRS 19 'Subsidiaries without Public Accountability: Disclosures'
We operate a formal risk management process, the details of which are set out on page 34 of the Financial Statements for the year ended 31 December 2025. Details of our principal risks can be found on pages 37 to 40 of the Financial Statements.
The risks assessed in preparing these condensed consolidated interim financial statements are consistent with those assessed in the most recent full year Financial Statements for the year ended 31 December 2025.
Board members
As at 30 June 2026, the Group's Board members were as follows:
|
Stuart Sinclair |
Chairman |
|
Gerard Ryan |
Executive Director and Chief Executive Officer |
|
Gary Thompson |
Executive Director and Chief Financial Officer |
|
Katrina Cliffe |
Senior independent non-executive director |
|
Richard Holmes |
Independent non-executive director |
|
Aileen Wallace |
Independent non-executive director |
Going concern
In considering whether the Group is a going concern, the Board has taken into account the Group's financial forecasts and its principal risks (with particular reference to funding, liquidity and regulatory risks). The forecasts have been prepared up to 31 December 2027 and include projected profit and loss, balance sheet, cashflows, borrowings, headroom against debt facilities and funding requirements. These forecasts represent the best estimate of the businesses performance, and in particular the evolution of customer lending and repayments cash flows as well as management's best assumption regarding the renewal/extension of maturing financing facilities.
The financial forecasts have been stress tested in a range of downside scenarios to assess the impact on future profitability, funding requirements and covenant compliance. The scenarios reflect the crystallisation of the Group's principal risks (with particular reference to funding, liquidity and regulatory risks). Consideration has also been given to multiple risks crystallising concurrently and the availability of mitigating actions that could be taken to reduce the impact of the identified risks. In addition, we examined a reverse stress test on the financial forecasts to assess the extent to which a recession would need to impact our operational performance in order to breach a covenant. This showed that net revenue would need to deteriorate significantly from the financial forecast and the Directors have a reasonable expectation that it is unlikely to deteriorate to this extent.
At 30 June 2026, the Group had £107m of non-operational cash and headroom against its debt facilities (comprising a range of bonds and bank facilities), which have a weighted average maturity of 2.2 years. Total debt facilities as at 30 June 2026 amounted to £820m of which £97m (excluding £51m of uncommitted loans, which do not require extension) is due for renewal over the following 12 months. A combination of these debt facilities, the embedded business flexibility in respect of cash generation and a successful track record of accessing funding from debt capital markets over a long period (including periods with challenging macroeconomic conditions and a changing regulatory environment), are expected to meet the Group's funding requirements for the foreseeable future (12 months from the date of approval of this report). Taking these factors into account, together with regulatory risks set out on page 37 of the 2025 Annual Report and Financial Statements, the Board has a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future. For this reason, the Board has adopted the going concern basis in preparing the Report.
Exceptional items
Exceptional items are items that are unusual because of their size, nature or incidence and which the directors consider should be disclosed separately to enable a full understanding of the Group's underlying results.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of condensed consolidated interim financial statements requires the Group to make estimates and judgements that affect the application of policies and reported accounts.
Critical judgements represent key decisions made by management in the application of the Group accounting policies. Where a significant risk of materially different outcomes exists due to management assumptions or sources of estimation uncertainty, this will represent a critical accounting estimate. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
The estimates and judgements which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below.
Key sources of estimation uncertainty
In the application of the Group's accounting policies, the directors are required to make estimations that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the critical estimations, that the directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in these condensed consolidated interim financial statements.
Revenue recognition
The estimate used in respect of revenue recognition is the methodology used to calculate the effective interest rate (EIR). In order to determine the EIR applicable to loans an estimate must be made of the expected life of each loan and hence the cash flows relating thereto. These estimates are based on historical data and are reviewed regularly.
Amounts receivable from customers
The Group reviews its portfolio of customer loans and receivables for impairment on a weekly or monthly basis. The Group reviews the most recent customer repayment performance to determine whether there is objective evidence which indicates that there has been an adverse effect on expected future cash flows. For the purposes of assessing the impairment of customer loans and receivables, customers are categorised into stages based on days past due as this is considered to be the most reliable predictor of future payment performance. The level of impairment is calculated using historical payment performance to generate both the estimated expected loss and also the timing of future cash flows for each agreement. The expected loss is calculated using probability of default (PD) and loss given default (LGD) parameters.
Impairment models are monitored regularly to test their continued capability to predict the timing and quantum of customer repayments in the context of the recent customer payment performance. The models used typically have a strong predictive capability reflecting the relatively stable nature of the business and therefore the actual performance does not usually vary significantly from the estimated performance. The models are ordinarily updated at least twice per year. Where we expect the models to show a change in the expected loss or the profile of the future cashflows in the following 12 months, we apply an adjustment to the models. At 30 June 2026, this adjustment is negligible (30 June 2025: reduction of £13.2m; 31 December 2025: reduction of £15.1m).
Post model overlays (PMOs) on amounts receivable from customers
|
|
Unaudited 30 June 2026 £m |
Unaudited 30 June 2025 £m |
Audited 31 December 2025 £m |
|
Provident Europe and Provident Mexico |
1.8 |
7.5 |
1.7 |
|
IPF Digital |
- |
1.8 |
- |
|
Total |
1.8 |
9.3 |
1.7 |
A full assessment of the impact of the global economic volatility has been performed and concluded that there remains an inherent macroeconomic risk in Romania where inflation rates are at an unprecedented level and the economy has entered a recession in early 2026. A PMO has been established and, based on management's current expectations, the impact of this PMO was to increase impairment provisions at 30 June 2026 by a further £1.5m (30 June 2025: £8.5m; 31 December 2025: £1.0m). The increase since the year end reflects the fact that the risks associated with the macroeconomic outlook in Romania has worsened in this period. This represents management's current assessment of the impact that the global economic volatility may have on the Group's customer receivables, however, given the levels of uncertainty in this area, the impacts (if any) may be greater or lower than the amount determined.
The Hungarian debt moratorium, which initially began in March 2020, ended in December 2022. There remains a small proportion of the portfolio that has at some point been in the moratorium. Given the age of these loans, PMOs have been applied to the impairment models in order to calculate the continued risks that are not fully reflected in the standard impairment models. Based on management's current expectations, the impact of these PMOs was to increase impairment provisions at 30 June 2026 to £0.3m (30 June 2025: £0.8m; 31 December 2025: £0.7m). In order to calculate the PMO, the portfolio was segmented by analysis of the most recent payment performance and, using this information, assumptions were made around expected credit losses. This represents management's current assessment of a reasonable outcome from the actual repayment performance on the debt moratorium impacted portfolio.
Tax
Estimations must be exercised in the calculation of the Group's tax provision, in particular with regard to the existence and extent of tax risks.
Deferred tax assets arise from timing differences between the accounting and tax treatment of revenue and impairment transactions and tax losses. Estimations must be made regarding the extent to which timing differences reverse and an assessment must be made of the extent to which future profits will be generated to absorb tax losses. A shortfall in profitability compared to current expectations may result in future adjustments to deferred tax asset balances.
Alternative performance measures
In reporting financial information, the Group presents alternative performance measures, 'APMs', which are not defined or specified under the requirements of IFRS.
The Group believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with additional helpful information on the performance of the business. The APMs are consistent with how the business performance is planned and reported within the internal management reporting to the Board.
Each of the APMs used by the Group is set out in the alternative performance measures (APMs) section including explanations of how they are calculated and how they can be reconciled to a statutory measure where relevant.
The Group reports percentage change figures for all performance measures, other than profit or loss before taxation and earnings per share, after restating prior year figures at a constant exchange rate. The constant exchange rate, which is an APM, retranslates the previous year measures at the average actual periodic exchange rates used in the current financial year. These measures are presented as a means of eliminating the effects of exchange rate fluctuations on the year-on-year reported results.
The Group makes certain adjustments to the statutory measures in order to derive APMs where relevant. The Group's policy is to exclude items that are considered to be significant in both nature and/or quantum and where treatment as an adjusted item provides stakeholders with additional useful information to assess the year-on-year trading performance of the Group.
2. Related parties
The Group has not entered into any material transactions with related parties in the first six months of the year.
3. Segment analysis
|
|
Unaudited |
Unaudited |
Audited |
|
|
Six months ended |
Six months ended |
Year ended |
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
£m |
£m |
|
Revenue |
|
|
|
|
Provident Europe |
186.5 |
160.6 |
339.7 |
|
Provident Mexico |
142.1 |
116.0 |
247.1 |
|
IPF Digital |
84.6 |
71.2 |
150.7 |
|
Revenue |
413.2 |
347.8 |
737.5 |
|
Impairment |
|
|
|
|
Provident Europe |
3.3 |
(6.0) |
5.5 |
|
Provident Mexico |
44.8 |
34.2 |
80.3 |
|
IPF Digital |
25.5 |
18.1 |
41.0 |
|
Impairment |
73.6 |
46.3 |
126.8 |
|
Pre-exceptional profit before taxation |
|
|
|
|
Provident Europe |
35.3 |
35.9 |
63.2 |
|
Provident Mexico |
16.4 |
14.4 |
26.6 |
|
IPF Digital |
2.6 |
6.9 |
14.1 |
|
UK costs1 |
(6.9) |
(7.3) |
(15.3) |
|
Pre-exceptional profit before taxation |
47.4 |
49.9 |
88.6 |
|
Segment assets |
|
|
|
|
Provident Europe |
717.0 |
592.3 |
642.6 |
|
Provident Mexico |
299.5 |
251.0 |
279.6 |
|
IPF Digital |
356.0 |
304.2 |
337.2 |
|
UK1 |
79.2 |
78.3 |
77.9 |
|
Total |
1,451.7 |
1,225.8 |
1,337.3 |
|
Segment liabilities |
|
|
|
|
Provident Europe |
(411.7) |
(267.4) |
(336.3) |
|
Provident Mexico |
(203.6) |
(125.7) |
(201.4) |
|
IPF Digital |
(274.5) |
(235.2) |
(251.2) |
|
UK1 |
(0.8) |
(95.9) |
(2.4) |
|
Total |
(890.6) |
(724.2) |
(791.3) |
1 Although the UK is not classified as a separate segment in accordance with IFRS 8 'Operating Segments', it is shown separately in order to provide a reconciliation to other operating costs, administrative expenses, profit before taxation and consolidated total assets and liabilities.
4. Interest expense
|
|
Unaudited |
Unaudited |
Audited |
|
|
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Year ended 31 December 2025 |
|
|
£m |
£m |
£m |
|
Interest payable on borrowings |
40.0 |
33.8 |
70.7 |
|
Interest payable on lease liabilities |
1.3 |
1.2 |
2.6 |
|
Interest income |
- |
(0.2) |
(2.0) |
|
Interest expense |
41.3 |
34.8 |
71.3 |
5. Tax expense
The pre-exceptional taxation charge on the profit for the first six months of the year of £18.0m (30 June 2025: £18.9m), has been based on an expected effective tax rate for 2026 of 38% (30 June 2025: 38%).
The 2026 results reflect an exceptional tax credit of £0.4m (30 June 2025: £nil; 31 December 2025: £nil), further details of which are included in note 8.
On 20 June 2023, the United Kingdom government's legislation applying the Pillar Two income tax rules became substantively enacted, effective for accounting periods commencing on or after 31 December 2023. Under the legislation the parent company will be required to pay in the United Kingdom top-up tax on profits of subsidiaries in territories that are taxed at an effective tax rate of less than 15% (as calculated under the rules). A system of simplified transitional safe harbours applies for a period of up to three years (with a further one year extension expected following the publication of the OECD's administrative guidance on the 'Side-by-Side Package' issued on 5 January 2026). Pillar Two legislation has also been implemented in many of the overseas territories in which the Group operates including the introduction of domestic minimum top-up taxes.
The Group has performed an assessment for 2026 and concludes that no material Pillar Two top-up tax liabilities are expected to arise. However, given the uncertainty regarding forecast financial data and the potential for changes in the tax environment in the markets in which the Group operates, the actual impact that the Pillar Two legislation will have in the future may differ. The Group is continuing to assess the impact of the Pillar Two income taxes legislation on its future financial performance.
6. Earnings per share
|
|
Unaudited |
Unaudited |
Audited |
|
|
Six months ended |
Six months ended |
Year ended |
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
pence |
pence |
pence |
|
Basic EPS |
11.5 |
14.2 |
24.8 |
|
Dilutive effect of awards |
(0.6) |
(0.7) |
(1.2) |
|
Diluted EPS |
10.9 |
13.5 |
23.6 |
Basic earnings per share (EPS) for 30 June 2026 is calculated by dividing the profit attributable to shareholders of £25.2m (30 June 2025: £31.0m; 31 December 2025: £54.2m) by the weighted average number of shares in issue during the period of 220.3m which has been adjusted to exclude the weighted average number of shares held in treasury and by the employee trust (30 June 2025: 217.7m; 31 December 2025: 218.3m).
For diluted EPS for 30 June 2026, the weighted average number of shares has been adjusted to 230.6m (six months ended 30 June 2025: 230.1m; 31 December 2025: 229.9m) to assume conversion of all dilutive potential ordinary share options relating to employees of the Group.
7. Dividends
No interim dividend has been declared (30 June 2025: 3.8 pence), given the impending completion of the recommended acquisition of the Group by Bidco and the previously declared special dividend of 15p per share in connection with the acquisition.
8. Exceptional items
The 2026 income statement included exceptional items which comprised of the following items:
|
|
Unaudited |
Unaudited |
Audited |
|
|
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Year ended 31 December 2025 |
|
|
£m |
£m |
£m |
|
Reorganisation of Czechia operations |
(3.3) |
- |
- |
|
Transaction related costs |
(1.3) |
- |
(3.3) |
|
Exceptional items before tax |
(4.6) |
- |
(3.3) |
|
|
|
|
|
|
Tax credit on reorganisation of Czechia operations |
0.4 |
- |
- |
|
Exceptional items tax credit |
0.4 |
- |
- |
|
Exceptional items after tax |
(4.2) |
- |
(3.3) |
In May 2026, the Group reorganised its operations in Czechia through the acquisition of Express Cash (see note 15), a small home credit provider which has been integrated within the Provident Czechia business, and by closing its small digital business which is part of IPF Digital. Exceptional charges of £3.3m have been incurred, comprising £2.0m in respect of writing down the digital receivables based on expected collections in a collect-out scenario and £1.3m of charges relating to redundancy, legal and accelerated depreciation.
9. Goodwill
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Net book value at start of period |
23.8 |
22.6 |
22.6 |
|
Acquisition of Express Cash (note 15) |
1.1 |
- |
- |
|
Exchange adjustments |
(0.3) |
0.7 |
1.2 |
|
Net book value at end of period |
24.6 |
23.3 |
23.8 |
Goodwill is tested annually for impairment or more frequently if there are indications that goodwill might be impaired. The recoverable amount is determined from a value in use calculation, based on the expected cash flows resulting from the legacy MCB business' outstanding customer receivables. The key assumptions used in the value in use calculation relate to the discount rates and cash flows used. The rate used to discount the forecast cash flows is 11% (30 June 2025: 12%; 31 December 2025: 12%) and would need to increase to 13% for the goodwill balance to be impaired; the cashflow forecasts arise over a 1-4 year period and would need to be 16% lower than currently estimated for the goodwill balance to be impaired.
On 30 May 2026 the Group acquired Express Cash, a small home credit competitor for a cash consideration of £5.4m. The £1.1m excess of consideration over the net assets acquired has been allocated to goodwill (see note 15).
10. Intangible assets
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Net book value at start of period |
52.7 |
37.1 |
37.1 |
|
Additions |
14.9 |
11.1 |
27.8 |
|
Amortisation |
(9.0) |
(6.2) |
(12.8) |
|
Exchange adjustments |
(0.1) |
0.4 |
0.6 |
|
Net book value at end of period |
58.5 |
42.4 |
52.7 |
Intangible assets comprise computer software and are a mixture of self-developed and purchased assets. All purchased assets have had further capitalised development on them, meaning it is not possible to disaggregate fully between the relevant intangible categories.
11. Property, plant and equipment
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Net book value at start of period |
16.3 |
14.0 |
14.0 |
|
Exchange adjustments |
0.5 |
0.3 |
1.0 |
|
Additions |
2.1 |
2.2 |
7.4 |
|
Acquisition of Express Cash (note 15) |
0.6 |
- |
- |
|
Disposals |
0.1 |
- |
- |
|
Depreciation |
(3.2) |
(3.0) |
(6.1) |
|
Net book value at end of period |
16.4 |
13.5 |
16.3 |
As at 30 June 2026, the Group had £14.5m of capital expenditure commitments with third parties that were not provided for (30 June 2025: £6.6m; 31 December 2025: £7.6m).
12. Right-of-use assets and lease liabilities
The recognised right-of-use assets relate to the following types of assets:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Properties |
11.6 |
10.0 |
11.7 |
|
Motor vehicles |
7.3 |
9.7 |
8.8 |
|
Total right-of-use assets |
18.9 |
19.7 |
20.5 |
The movement in the right-of-use assets in the period is as follows:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Net book value at start of period |
20.5 |
17.7 |
17.7 |
|
Exchange adjustments |
0.4 |
0.4 |
1.2 |
|
Additions |
2.9 |
6.3 |
9.8 |
|
Acquisition of Express Cash (note 15) |
0.1 |
- |
- |
|
Modifications |
- |
- |
1.7 |
|
Depreciation |
(5.0) |
(4.7) |
(9.9) |
|
Net book value at end of period |
18.9 |
19.7 |
20.5 |
The movement in lease liabilities in the period is as follows:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Lease liabilities at start of period |
22.6 |
19.9 |
19.9 |
|
Exchange adjustments |
0.5 |
0.4 |
1.4 |
|
Additions |
2.9 |
6.3 |
11.5 |
|
Acquisition of Express Cash (note 15) |
0.1 |
- |
- |
|
Interest |
1.3 |
1.2 |
2.6 |
|
Lease payments |
(6.2) |
(6.3) |
(12.8) |
|
Lease liabilities at end of period |
21.2 |
21.5 |
22.6 |
Analysed as:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Current |
8.8 |
7.7 |
8.4 |
|
|
|
|
|
|
Non-current: |
|
|
|
|
- between one and five years |
11.8 |
12.0 |
12.9 |
|
- greater than five years |
0.6 |
1.8 |
1.3 |
|
|
12.4 |
13.8 |
14.2 |
|
|
|
|
|
|
Lease liabilities at end of period |
21.2 |
21.5 |
22.6 |
13. Deferred tax assets
Deferred tax assets have been recognised in respect of tax losses and other temporary timing differences (principally relating to recognition of revenue and impairment) to the extent that it is probable that these assets will be utilised against future taxable profits.
The Group has applied the temporary exception issued by the IASB in May 2023 from the accounting requirements for deferred taxes in IAS12. Accordingly, the Group neither recognises nor discloses information about deferred tax assets and liabilities relating to Pillar Two income taxes.
14. Amounts receivable from customers
Amounts receivable from customers comprise:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Amounts due within one year |
832.1 |
674.1 |
770.2 |
|
Amounts due in more than one year |
337.8 |
263.7 |
291.1 |
|
Total receivables |
1,169.9 |
937.8 |
1,061.3 |
All lending is in the local currency of the country in which the loan is issued. The currency profile of amounts receivable from customers is as follows:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Polish zloty |
276.7 |
208.4 |
235.9 |
|
Czech crown |
78.7 |
57.7 |
66.7 |
|
Euro* |
121.1 |
113.7 |
122.2 |
|
Hungarian forint |
210.5 |
159.7 |
183.4 |
|
Romanian leu |
140.1 |
124.3 |
140.1 |
|
Mexican peso |
271.0 |
219.1 |
248.9 |
|
Australian dollar |
71.8 |
54.9 |
64.1 |
|
Total receivables |
1,169.9 |
937.8 |
1,061.3 |
*Includes receivables in Estonia, Latvia and Lithuania.
Amounts receivable from customers are held at amortised cost and are equal to the expected future cash flows receivable discounted at the average effective EIR of 89.1% (30 June 2025: 94.1%; 31 December 2025: 91.0%). All amounts receivable from customers are at fixed interest rates. The average period to maturity of the amounts receivable from customers is 12.7 months (30 June 2025: 13.5 months; 31 December 2025: 13.1 months).
Determining an increase in credit risk since initial recognition
IFRS 9 has the following recognition criteria:
· Stage 1 : requires the recognition of 12 month expected credit losses (the expected credit losses from default events that are expected within 12 months of the reporting date) if credit risk has not significantly increased since initial recognition.
· Stage 2 : lifetime expected credit losses for financial instruments for which the credit risk has increased significantly since initial recognition.
· Stage 3 : credit impaired.
When determining whether the risk of default has increased significantly since initial recognition the Group considers both quantitative and qualitative information based on the Group's historical experience.
The approach to identifying significant increases in credit risk is consistent across the Group's products. In addition, as a backstop, the Group considers that a significant increase in credit risk occurs when an asset is more than 30 days past due.
Financial instruments are moved back to stage 1 once they no longer meet the criteria for a significant increase in credit risk.
Definition of default and credit impaired assets
The Group defines a financial instrument as in default, which is fully-aligned with the definition of credit-impaired, when it meets one or more of the following criteria:
· Quantitative criteria: the customer is more than 90 days past due on their contractual payments in home credit and 60 days past due on their contractual payments in IPF Digital.
· Qualitative criteria: indication that there is a measurable movement in the estimated future cash flows from a group of financial assets. For example, if prospective legislative changes are considered to impact the repayments performance of customers.
The default definition has been applied consistently to model the PD, exposure at default (EAD) and LGD throughout the Group's expected credit loss calculations.
An instrument is considered to no longer be in default (i.e. to have cured) when it no longer meets any of the default criteria.
The breakdown of receivables by stage is as follows:
|
30 June 2026 |
Stage 1 £m |
Stage 2 £m |
Stage 3 £m |
Total net receivables £m |
|
Provident Europe |
486.0 |
49.9 |
113.0 |
648.9 |
|
Provident Mexico |
126.6 |
24.0 |
59.8 |
210.4 |
|
IPF Digital |
290.9 |
14.1 |
5.6 |
310.6 |
|
Group |
903.5 |
88.0 |
178.4 |
1,169.9 |
|
30 June 2025 |
Stage 1 £m |
Stage 2 £m |
Stage 3 £m |
Total net receivables £m |
|
Provident Europe |
387.8 |
39.8 |
74.5 |
502.1 |
|
Provident Mexico |
104.8 |
17.7 |
45.3 |
167.8 |
|
IPF Digital |
251.4 |
11.5 |
5.0 |
267.9 |
|
Group |
744.0 |
69.0 |
124.8 |
937.8 |
|
31 December 2025 |
Stage 1 £m |
Stage 2 £m |
Stage 3 £m |
Total net receivables £m |
|
Provident Europe |
447.7 |
44.3 |
83.4 |
575.4 |
|
Provident Mexico |
119.1 |
21.8 |
50.3 |
191.2 |
|
IPF Digital |
276.8 |
12.6 |
5.3 |
294.7 |
|
Group |
843.6 |
78.7 |
139.0 |
1,061.3 |
The Group has one class of loan receivable and no collateral is held in respect of any customer receivables.
Gross carrying amount and loss allowance
The amounts receivable from customers includes a provision for the loss allowance, which relates to the expected credit losses on each agreement. The gross carrying amount is the present value of the portfolio before the loss allowance provision is deducted. The gross carrying amount less the loss allowance is equal to the net receivables.
|
30 June 2026 |
Stage 1 £m |
Stage 2 £m |
Stage 3 £m |
Total net receivables £m |
|
Gross carrying amount |
1,055.0 |
160.5 |
478.2 |
1,693.7 |
|
Loss allowance |
(151.5) |
(72.5) |
(299.8) |
(523.8) |
|
Group |
903.5 |
88.0 |
178.4 |
1,169.9 |
|
Stage allocation |
62% |
10% |
28% |
100% |
|
Coverage ratio |
14% |
45% |
63% |
31% |
|
30 June 2025 |
Stage 1 £m |
Stage 2 £m |
Stage 3 £m |
Total net receivables £m |
|
Gross carrying amount |
875.7 |
129.1 |
373.6 |
1,378.4 |
|
Loss allowance |
(131.7) |
(60.1) |
(248.8) |
(440.6) |
|
Group |
744.0 |
69.0 |
124.8 |
937.8 |
|
Stage allocation |
64% |
9% |
27% |
100% |
|
Coverage ratio |
15% |
46% |
67% |
32% |
|
31 December 2025 |
Stage 1 £m |
Stage 2 £m |
Stage 3 £m |
Total net receivables £m |
|
Gross carrying amount |
987.1 |
147.2 |
405.2 |
1,539.5 |
|
Loss allowance |
(143.5) |
(68.5) |
(266.2) |
(478.2) |
|
Group |
843.6 |
78.7 |
139.0 |
1,061.3 |
|
Stage allocation |
64% |
10% |
26% |
100% |
|
Coverage ratio |
15% |
47% |
66% |
31% |
15. Acquisition accounting
On 30 May 2026 the Group acquired Express Cash, a small home credit competitor for a cash consideration of £5.4m. The excess of consideration over the net assets acquired has been allocated to goodwill.
The net assets acquired and goodwill (presented at the exchange rate at the acquisition date) are as follows:
|
Recognised amounts of identifiable assets |
Fair value |
|
acquired and liabilities assumed |
£m |
|
|
|
|
Property, plant and equipment |
0.6 |
|
Right of use assets |
0.1 |
|
Amounts receivable from customers |
12.4 |
|
Cash and cash equivalents |
0.2 |
|
Borrowings |
(8.0) |
|
Trade and other payables |
(0.4) |
|
Lease liabilities |
(0.1) |
|
Deferred tax liability |
(0.5) |
|
|
4.3 |
|
Goodwill |
1.1 |
|
Total consideration |
5.4 |
|
|
|
|
Cash consideration |
5.4 |
|
Cash acquired |
(0.2) |
|
Net cash outflow in respect of acquisition |
5.2 |
16. Borrowing facilities and borrowings
The maturity of the Group's bond and bank borrowings is as follows:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Repayable |
|
|
|
|
- in less than one year |
78.0 |
84.2 |
58.9 |
|
|
|
|
|
|
- between one and two years |
159.9 |
45.5 |
142.7 |
|
- between two and five years |
472.0 |
435.9 |
416.1 |
|
|
631.9 |
481.4 |
558.8 |
|
|
|
|
|
|
Total borrowings |
709.9 |
565.6 |
617.7 |
|
|
|
|
|
Borrowings are stated net of deferred debt issuance costs of £6.8m (30 June 2025: £6.8m; 31 December 2025: £6.9m).
The maturity of the Group's bond and bank facilities is as follows:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Repayable |
|
|
|
|
- on demand |
48.1 |
47.3 |
46.9 |
|
- in less than one year |
100.6 |
80.0 |
97.0 |
|
- between one and two years |
167.2 |
71.6 |
157.7 |
|
- between two and five years |
503.9 |
451.3 |
448.2 |
|
Total facilities |
819.8 |
650.2 |
749.8 |
The undrawn external bank facilities are as follows:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Expiring within one year |
70.7 |
43.1 |
85.0 |
|
Expiring between one and two years |
6.6 |
26.1 |
14.1 |
|
Expiring in more than two years |
25.8 |
8.6 |
26.1 |
|
Total |
103.1 |
77.8 |
125.2 |
Undrawn external facilities above do not include unamortised arrangement fees. The average period to maturity of the Group's external bonds and committed external borrowings is 2.2 years (30 June 2025: 2.8 years; 31 December 2025: 2.6 years). The Group complied with its covenants at 30 June 2026. Each covenant calculation has been made in accordance with the terms of the relevant funding documentation.
17. Retirement benefit asset
The amounts recognised in the balance sheet in respect of the retirement benefit asset are as follows:
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Diversified growth funds |
4.0 |
3.8 |
4.0 |
|
Corporate bonds |
8.2 |
7.8 |
7.4 |
|
Equities |
3.0 |
3.2 |
3.2 |
|
Liability driven investments |
10.6 |
10.9 |
11.8 |
|
Other |
0.5 |
0.4 |
0.5 |
|
Total fair value of scheme assets |
26.3 |
26.1 |
26.9 |
|
Present value of funded defined benefit obligations |
(21.3) |
(21.5) |
(21.9) |
|
Net asset recognised in the balance sheet |
5.0 |
4.6 |
5.0 |
The credit recognised in the income statement in respect of defined benefit pension costs is £0.2m (June 2025: £0.1m; 31 December 2025: £0.2m).
18. Fair values of financial assets and liabilities
IFRS 13 requires disclosure of fair value measurements of financial instruments by level of the following fair value measurement hierarchy:
|
· |
quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1); |
|
· |
inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and |
|
· |
inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). |
The fair value of derivative financial instruments has been calculated by discounting expected future cash flows using interest rate yield curves and forward foreign exchange rates prevailing at the relevant period end.
In 2025 and 2026, there has been no change in classification of financial assets as a result of a change in purpose or use of these assets.
Except as detailed in the following table, the carrying value of financial assets and liabilities recorded at amortised cost, which are all short-term in nature, are a reasonable approximation of their fair value:
|
|
Carrying value |
Fair value |
||||
|
|
Unaudited 30 June 2026 £m |
Unaudited 30 June 2025 £m |
Audited 31 December 2025 £m |
Unaudited 30 June 2026 £m |
Unaudited 30 June 2025 £m |
Audited 31 December 2025 £m |
|
Financial assets |
|
|
|
|
|
|
|
Amounts receivable from customers |
1,169.9 |
937.8 |
1061.3 |
1,529.6 |
1,211.4 |
1,373.9 |
|
|
1,169.9 |
937.8 |
1061.3 |
1,529.6 |
1,211.4 |
1,373.9 |
|
Financial liabilities |
|
|
|
|
|
|
|
Bonds |
545.1 |
389.4 |
476.2 |
570.9 |
431.8 |
511.4 |
|
Bank borrowings |
164.8 |
176.2 |
141.5 |
164.8 |
176.2 |
141.5 |
|
|
709.9 |
565.6 |
617.7 |
735.7 |
608.0 |
652.9 |
The fair value of amounts receivable from customers has been derived by discounting expected future cash flows (as used to calculate the carrying value of amounts due from customers), net of customer representative repayment costs, at the Group's weighted average cost of capital which we estimate to be 11% (30 June 2025: 12%; 31 December 2025: 12%) which is assumed to be a proxy for the discount rate that a market participant would use to price the asset.
The fair value of the bonds has been calculated by reference to their market value.
The carrying value of bank borrowings is deemed to be a good approximation of their fair value. Bank borrowings can be repaid within six months if the Group decides not to roll over for further periods up to the contractual repayment date. The impact of discounting would therefore be negligible. This methodology has been used consistently for all periods.
19. Reconciliation of profit after taxation to cash generated from operating activities
|
|
Unaudited |
Unaudited |
Audited |
|
|
Six months ended |
Six months ended |
Year ended |
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
£m |
£m |
|
Profit after taxation from operations |
25.2 |
31.0 |
54.2 |
|
Adjusted for |
|
|
|
|
Tax charge |
17.6 |
18.9 |
31.1 |
|
Finance costs |
41.3 |
35.0 |
73.3 |
|
Finance income |
- |
(0.2) |
(2.0) |
|
Share-based payment charge |
0.3 |
1.0 |
2.1 |
|
Amortisation of intangible assets (note 10) |
9.0 |
6.2 |
12.8 |
|
Depreciation of property, plant and equipment (note 11) |
3.2 |
3.0 |
6.1 |
|
Loss on disposal of property, plant and equipment |
(0.1) |
- |
- |
|
Depreciation of right-of-use assets (note 12) |
5.0 |
4.7 |
9.9 |
|
Short term and low value lease costs |
0.5 |
0.6 |
1.4 |
|
Changes in operating assets and liabilities |
|
|
|
|
Amounts receivable from customers |
(77.6) |
(43.7) |
(127.3) |
|
Other receivables |
(6.1) |
6.1 |
8.2 |
|
Trade and other payables |
0.2 |
(6.9) |
(0.7) |
|
Provision for liabilities and charges |
- |
(2.8) |
(2.8) |
|
Retirement benefit asset |
(0.1) |
(0.1) |
(0.2) |
|
Derivative financial instruments |
2.8 |
(0.9) |
3.7 |
|
Cash generated from operating activities |
21.2 |
51.9 |
69.8 |
20. Foreign exchange rates
The table below shows the average exchange rates for the relevant reporting periods and closing exchange rates at the relevant period ends.
|
|
Average H1 2026 |
Closing June 2026 |
Average H1 2025 |
Closing June 2025 |
Average Year 2025 |
Closing December 2025 |
|
Polish zloty |
4.9 |
5.0 |
5.0 |
5.0 |
5.0 |
4.8 |
|
Czech crown |
28.0 |
28.0 |
29.6 |
29.0 |
28.6 |
27.7 |
|
Euro |
1.2 |
1.2 |
1.2 |
1.2 |
1.2 |
1.1 |
|
Hungarian forint |
423.4 |
408.0 |
479.2 |
470.2 |
461.2 |
440.7 |
|
Romanian leu |
5.9 |
6.1 |
5.9 |
5.9 |
5.9 |
5.8 |
|
Mexican peso |
23.4 |
23.0 |
25.8 |
25.8 |
25.3 |
24.2 |
|
Australian dollar |
1.9 |
1.9 |
2.1 |
2.1 |
2.0 |
2.0 |
The £7.9m exchange gain on foreign currency translations shown within the consolidated statement of comprehensive income arises on retranslation of net assets denominated in currencies other than sterling, due to the change in foreign exchange rates against sterling between December 2025 and June 2026 shown in the table above.
21. Contingent Liabilities
Poland - European Court of Justice ruling on credit-related costs
On 23 April 2026, the Court of Justice of the European Union (CJEU) ruled in Case C‑744/2 that lenders may not charge interest on the portion of a consumer credit agreement used to finance credit-related fees, commissions and other ancillary costs.
This judgment departs from the interpretation of Polish and EU consumer credit law that had previously prevailed in the Polish market, under which charging interest on financed credit-related costs was generally regarded as lawful - a view supported by legal scholarship, the President of UOKiK, the majority of Polish court decisions, the Polish Financial Supervision Authority (KNF) and Polish Supreme Court case law.
Following the ruling, and with the assistance of external legal counsel, the Group is reviewing its Polish lending products and redesigning relevant product terms on a prospective basis. Although CJEU judgments are generally declaratory in nature, current market practice and the approach taken by Polish authorities to date have sought to limit the retrospective effect of the ruling and to confine its impact primarily to the design of new products.
It is not currently possible to predict the ultimate impact of the ruling, including whether, or to what extent, it will be applied retrospectively to existing agreements, or the position Polish courts or regulators will ultimately adopt on implementation.
Since the ruling, complaints relating to this issue have begun to be submitted to the Group by customers and via a claims-handling intermediary; the Group is engaging with any complaints received in the ordinary course. As at 30 June 2026, no court proceedings had been issued against the Group in relation to this matter. It is not currently possible to determine whether, when, or on what legal basis any such claims might be brought to court, nor how Polish courts would assess them - post-ruling decisions to date have differed in their treatment of the issue, and it is also possible that assignment arrangements between customers and third-party claims handlers could themselves be challenged or invalidated.
Considering the above, and the legal advice obtained to date, the Group has not recognised a provision in relation to this matter as at 30 June 2026.
Treatment of the Group's finance company
In December 2020 HMRC initiated a review of the Group's finance company's compliance with certain conditions under the UK domestic tax rules to confirm whether the company is eligible for the benefits of the Group Financing Exemption which it has claimed in its historic tax returns. IPF believes that all conditions have been complied with and have sought legal advice with regard to the interpretation of the relevant legislative condition. The legal advice confirmed IPF's view and assessed that, in the event that HMRC were to take the matter to Tribunal, it is more likely than not that the company would succeed in defending its position. In the unexpected event that HMRC were to conclude that the company is not in compliance with the conditions and to pursue the matter in Tribunal, and won, the amount of tax at stake for all open years is £8.8m. It is of note that although HMRC issued a protective Discovery Assessment with respect to 2016, so far no actual challenge has been made to the company's filing position and HMRC have simply requested information.
Other legal actions and regulatory matters
In addition, in the course of its business the Group is subject to other complaints and threatened or actual legal proceedings (including class or group action claims) brought by or on behalf of current or former employees, customer representatives, customers, investors or other third parties. This extends to legal and regulatory challenges and investigations (including relevant consumer bodies) combined with tax authorities taking a view that is different to the view the Group has taken on the tax treatment in its tax returns. Where material, such matters are periodically reassessed, with the assistance of external professional advisers where appropriate, to determine the likelihood of the Group incurring a liability. In those instances where it is concluded that it is more likely than not that a payment will be made, a provision is established based on management's best estimate of the amount required at the relevant balance sheet date. In some cases, it may not be possible to form a view, for example because the facts are unclear or because further time is needed to assess properly the merits of the case, and no provisions are held in relation to such matters. In these circumstances, specific disclosure in relation to a contingent liability will be made where material. However, the Group does not currently expect the final outcome of any such case to have a material adverse effect on its financial position, operations or cash flows.
Responsibility statement
The following statement is given by each of the directors: namely; Stuart Sinclair, Chairman; Gerard Ryan, Chief Executive Officer; Gary Thompson, Chief Financial Officer; Katrina Cliffe, Senior independent non-executive director; Richard Holmes, independent non-executive director; and Aileen Wallace, independent non-executive director.
The directors confirm that to the best of their knowledge:
|
· |
the condensed consolidated interim financial statements, which have been prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4R; |
|
· |
the half-year financial report includes a fair review of the information required by DTR 4.2.7 (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and |
|
· |
the half-year financial report includes a fair review of the information required by DTR 4.2.8 (disclosure of related parties' transactions and changes therein). |
Alternative performance measures (APMs)
This half-year financial report provides APMs which are not defined or specified under the requirements of International Financial Reporting Standards. We believe these APMs provide readers with important additional information on our business. To support this we have included a reconciliation of the APMs we use, where relevant, and a glossary indicating the APMs that we use, an explanation of how they are calculated and why we use them.
|
APM
|
Closest equivalent statutory measure |
Reconciling items to statutory measure |
Definition and purpose
|
|
Income statement measures |
|
|
|
|
Customer lending growth at constant exchange rates (%)
|
None |
Not applicable |
Customer lending is the principal value of loans advanced to customers and is an important measure of the level of lending in the business. Customer lending growth is the period-on-period change in this metric which is calculated by retranslating the previous half-year's customer lending at the average actual exchange rates used in the current financial year. This ensures that the measure is presented having eliminated the effects of exchange rate fluctuations on the period-on-period reported results. |
|
Revenue growth at constant exchange rates (%)
|
None |
Not applicable |
The period-on-period change in revenue which is calculated by retranslating the previous half-year's revenue at the average actual exchange rates used in the current financial year. This measure is presented as a means of eliminating the effects of exchange rate fluctuations on the period-on-period reported results. |
|
Revenue yield (%) |
None |
Not applicable |
Revenue yield is reported revenue divided by average gross receivables (before impairment provision) and is an indicator of the return being generated from average gross receivables. This is reported on a rolling annual basis (annualised). |
|
Impairment rate (%)
|
None |
Not applicable |
Impairment as a percentage of average gross receivables (before impairment provision). This is reported on a rolling annual basis (annualised). |
|
Cost-income ratio (%) |
None |
Not applicable |
The cost-income ratio is costs, including customer representatives' commission, excluding interest expense, divided by reported revenue. This measure is reported on a rolling annual basis (annualised). This is useful for comparing performance across markets. |
|
APM
|
Closest equivalent statutory measure |
Reconciling items to statutory measure |
Definition and purpose
|
|
Balance sheet and returns measures |
|||
|
Equity to receivables ratio (%) |
None |
Not applicable |
Total equity divided by amounts receivable from customers, this is a measure of balance sheet strength and the Group targets a ratio of around 40%. |
|
Headroom (£m) |
Undrawn external bank facilities |
None
|
Calculated as the sum of undrawn external bank facilities and non-operational cash. |
|
Net debt (£m) |
None |
Not applicable |
Borrowings less cash. |
|
Gross receivables (£m) |
None |
Not applicable |
Gross receivables is the same definition as gross carrying amount. |
|
Impairment coverage ratio (%) |
None |
Not applicable |
Expected loss allowance divided by gross receivables (before impairment provision). |
|
RoE (%) |
None |
Not applicable |
Return on equity (RoE) calculated as rolling annual profit after tax divided by average net assets over the same period. |
|
Pre-exceptional RoRE (%) |
None |
Not applicable |
Return on required equity (RoRE) is calculated as rolling annual pre-exceptional profit after tax divided by required equity of 40% of average net receivables. |
|
Other measures |
|
|
|
|
Customers |
None |
Not applicable |
Customers that are being served by our customer representatives or through our money transfer product in the home credit business and customers that are not in default in our digital business. |
Constant exchange rate reconciliations
The period-on-period change in pre-exceptional profit and loss accounts is calculated by retranslating the 2025 half-year's profit and loss account at the average actual exchange rates used in the current year.
|
H1 2026 |
|
|
|
|
|
|
|
|
£m |
Provident Europe |
ProvidentMexico |
IPF Digital |
Central costs |
Group |
|
|
|
Customer numbers (000s) |
737 |
714 |
292 |
- |
1,743 |
|
|
|
Customer lending |
459.3 |
159.3 |
163.1 |
- |
781.7 |
|
|
|
Average gross receivables |
829.2 |
327.8 |
386.5 |
- |
1,543.5 |
|
|
|
Closing net receivables |
648.9 |
210.4 |
310.6 |
- |
1,169.9 |
|
|
|
Revenue |
186.5 |
142.1 |
84.6 |
- |
413.2 |
|
|
|
Impairment |
(3.3) |
(44.8) |
(25.5) |
- |
(73.6) |
|
|
|
Revenue less impairment |
183.2 |
97.3 |
59.1 |
- |
339.6 |
|
|
|
Costs |
(125.6) |
(72.8) |
(45.6) |
(6.9) |
(250.9) |
|
|
|
Interest expense |
(22.3) |
(8.1) |
(10.9) |
- |
(41.3) |
|
|
|
Profit before tax |
35.3 |
16.4 |
2.6 |
(6.9) |
47.4 |
|
|
|
H1 2025 performance, at average H1 2025 foreign exchange rates |
||||||
|
£m |
Provident Europe |
Provident Mexico |
IPF Digital |
Central costs |
Group |
|
|
Customer numbers (000s) |
711 |
683 |
259 |
- |
1,653 |
|
|
Customer lending |
351.7 |
132.6 |
137.7 |
- |
622.0 |
|
|
Average gross receivables |
707.5 |
284.3 |
326.8 |
- |
1,318.6 |
|
|
Closing net receivables |
502.1 |
167.8 |
267.9 |
- |
937.8 |
|
|
Revenue |
160.6 |
116.0 |
71.2 |
- |
347.8 |
|
|
Impairment |
6.0 |
(34.2) |
(18.1) |
- |
(46.3) |
|
|
Revenue less impairment |
166.6 |
81.8 |
53.1 |
- |
301.5 |
|
|
Costs |
(111.5) |
(60.9) |
(37.2) |
(7.2) |
(216.8) |
|
|
Interest expense |
(19.2) |
(6.5) |
(9.0) |
(0.1) |
(34.8) |
|
|
Profit before tax |
35.9 |
14.4 |
6.9 |
(7.3) |
49.9 |
|
|
Constant exchange rate reconciliations (continued)
Foreign exchange movements |
||||||
|
£m |
Provident Europe |
Provident Mexico |
IPF Digital |
Central costs |
Group |
|
|
Customer numbers (000s) |
- |
- |
- |
- |
- |
|
|
Customer lending |
16.2 |
13.8 |
7.7 |
- |
37.7 |
|
|
Average gross receivables |
37.0 |
17.0 |
13.0 |
- |
67.0 |
|
|
Closing net receivables |
23.6 |
20.9 |
13.8 |
- |
58.3 |
|
|
Revenue |
8.7 |
12.2 |
4.4 |
- |
25.3 |
|
|
Impairment |
0.1 |
(3.7) |
(1.8) |
- |
(5.4) |
|
|
Revenue less impairment |
8.8 |
8.5 |
2.6 |
- |
19.9 |
|
|
Costs |
(5.0) |
(6.0) |
(1.8) |
- |
(12.8) |
|
|
Interest expense |
(1.0) |
(0.7) |
(0.5) |
- |
(2.2) |
|
|
Profit before tax |
2.8 |
1.8 |
0.3 |
- |
4.9 |
|
|
H1 2025 performance, at average H1 2026 foreign exchange rates |
||||||
|
£m |
Provident Europe |
Provident Mexico |
IPF Digital |
Central costs |
Group |
|
|
Customer numbers (000s) |
711 |
683 |
259 |
- |
1,653 |
|
|
Customer lending |
367.9 |
146.4 |
145.4 |
- |
659.7 |
|
|
Average gross receivables |
744.5 |
301.3 |
339.8 |
- |
1,385.6 |
|
|
Closing net receivables |
525.7 |
188.7 |
281.7 |
- |
996.1 |
|
|
Revenue |
169.3 |
128.2 |
75.6 |
- |
373.1 |
|
|
Impairment |
6.1 |
(37.9) |
(19.9) |
- |
(51.7) |
|
|
Revenue less impairment |
175.4 |
90.3 |
55.7 |
- |
321.4 |
|
|
Costs |
(116.5) |
(66.9) |
(39.0) |
(7.2) |
(229.6) |
|
|
Interest expense |
(20.2) |
(7.2) |
(9.5) |
(0.1) |
(37.0) |
|
|
Year-on-year movement at constant exchange rates |
||||||
|
% |
Provident Europe |
Provident Mexico |
IPF Digital |
Central costs |
Group |
|
|
Customer numbers |
3.7% |
4.5% |
12.7% |
- |
5.4% |
|
|
Customer lending |
24.8% |
8.8% |
12.2% |
- |
18.5% |
|
|
Average gross receivables |
11.4% |
8.8% |
13.7% |
- |
11.4% |
|
|
Closing net receivables |
23.4% |
11.5% |
10.3% |
- |
17.4% |
|
|
Revenue |
10.2% |
10.8% |
11.9% |
- |
10.7% |
|
|
Impairment |
154.1% |
(18.2%) |
(28.1%) |
- |
(42.4%) |
|
|
Revenue less impairment |
4.4% |
7.8% |
6.1% |
- |
5.7% |
|
|
Costs |
(7.8%) |
(8.8%) |
(16.9%) |
4.2% |
(9.3%) |
|
|
Interest expense |
(10.4%) |
(12.5%) |
(14.7%) |
100.0% |
(11.6%) |
|
Balance sheet and returns measures
Average gross receivables (before impairment provisions) are used in the revenue yield and impairment rate calculations.
|
Average Gross Receivables |
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Provident Europe |
829.2 |
707.5 |
757.6 |
|
Provident Mexico |
327.8 |
284.3 |
295.9 |
|
IPF Digital |
386.5 |
326.8 |
352.4 |
|
Group |
1,543.5 |
1,318.6 |
1,405.9 |
The impairment coverage ratio is calculated as loss allowance divided by gross carrying amount.
|
Impairment coverage ratio |
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Closing gross carrying amount |
1,693.7 |
1,378.4 |
1,539.5 |
|
Loss allowance |
(523.8) |
(440.6) |
(478.2) |
|
Closing net receivables |
1,169.9 |
937.8 |
1,061.3 |
|
Impairment coverage ratio |
30.9% |
32.0% |
31.1% |
Return on equity (RoE) is calculated as rolling annual profit divided by equity.
|
RoE 30 June 2026 |
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Equity (net assets) |
561.1 |
501.6 |
546.0 |
|
Average equity |
531.4 |
491.0 |
506.2 |
|
Profit after tax |
25.2 |
31.0 |
54.2 |
|
Profit 12 months to 30 June 2026 |
48.4 |
72.2 |
- |
|
RoE |
9.1% |
14.7% |
10.7% |
|
RoE 30 June 2025 |
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30 June |
31 December |
|
|
2025 |
2024 |
2024 |
|
|
£m |
£m |
£m |
|
Equity (net assets) |
501.6 |
480.4 |
466.3 |
|
Average equity |
491.0 |
471.7 |
484.1 |
|
Profit after tax |
31.0 |
19.7 |
60.9 |
|
Profit 12 months to 30 June 2025 |
72.2 |
49.0 |
- |
|
RoE |
14.7% |
10.4% |
12.6% |
Pre-exceptional return on required equity (RoRE) is calculated as rolling annual pre-exceptional profit divided by required equity of 40% of average net receivables.
|
Pre-exceptional RoRE 30 June 2026 |
Provident Europe |
Provident Mexico |
IPF Digital |
Group |
|
|
£m |
£m |
£m |
£m |
|
Closing net receivables H1 2025 |
502.1 |
167.8 |
267.9 |
937.8 |
|
Closing net receivables H1 2026 |
648.9 |
210.4 |
310.6 |
1,169.9 |
|
Average net receivables |
575.5 |
189.1 |
289.2 |
1,053.8 |
|
Equity (net assets) at 40% |
230.2 |
75.6 |
115.7 |
421.5 |
|
|
|
|
|
|
|
Pre-exceptional profit before tax: |
|
|
|
|
|
FY 2025 |
63.2 |
26.6 |
14.1 |
88.6 |
|
Exclude H1 2025 |
(35.9) |
(14.4) |
(6.9) |
(49.9) |
|
H2 2025 |
27.3 |
12.2 |
7.2 |
38.7 |
|
H1 2026 |
35.3 |
16.4 |
2.6 |
47.4 |
|
12 MO to H1 2026 |
62.6 |
28.6 |
9.8 |
86.1 |
|
Tax at 38% H1 2026 (35.1% H2 2025) |
(23.0) |
(10.5) |
(3.5) |
(31.6) |
|
Pre-exceptional profit after tax |
39.6 |
18.1 |
6.3 |
54.5 |
|
Pre-exceptional RoRE |
17.2% |
23.9% |
5.4% |
12.9% |
|
Pre-exceptional RoRE 30 June 2025 |
Provident Europe |
Provident Mexico |
IPF Digital |
Group |
|
|
£m |
£m |
£m |
£m |
|
Closing net receivables H1 2024 |
444.0 |
183.0 |
237.4 |
864.4 |
|
Closing net receivables H1 2025 |
502.1 |
167.8 |
267.9 |
937.8 |
|
Average net receivables |
473.1 |
175.4 |
252.6 |
901.1 |
|
Equity (net assets) at 40% |
189.2 |
70.2 |
101.0 |
360.4 |
|
|
|
|
|
|
|
Pre-exceptional profit before tax: |
|
|
|
|
|
FY 2024 |
57.4 |
26.0 |
17.0 |
85.2 |
|
Exclude H1 2024 |
(29.8) |
(17.7) |
(7.2) |
(47.3) |
|
H2 2024 |
27.6 |
8.3 |
9.8 |
37.9 |
|
H1 2025 |
35.9 |
14.4 |
6.9 |
49.9 |
|
12 MO to H1 2025 |
63.5 |
22.7 |
16.7 |
87.8 |
|
Tax at 38% H1 2025 (35% H2 2024) |
(23.3) |
(8.4) |
(6.0) |
(32.2) |
|
Pre-exceptional profit after tax |
40.2 |
14.3 |
10.7 |
55.6 |
|
Pre-exceptional RoRE |
21.2% |
20.4% |
10.6% |
15.4% |
|
Pre-exceptional RoRE 2025 |
Provident Europe |
Provident Mexico |
IPF Digital |
Group |
|
|
£m |
£m |
£m |
£m |
|
Closing net receivables 2025 |
575.4 |
191.2 |
294.7 |
1,061.3 |
|
Closing net receivables 2024 |
459.6 |
159.4 |
251.0 |
870.0 |
|
Average net receivables |
517.5 |
175.3 |
272.9 |
965.7 |
|
Equity (net assets) at 40% |
207.0 |
70.1 |
109.2 |
386.3 |
|
|
|
|
|
|
|
Pre-exceptional profit before tax |
63.2 |
26.6 |
14.1 |
88.6 |
|
Tax at 35.1% |
(22.2) |
(9.3) |
(4.9) |
(31.1) |
|
Pre-exceptional profit after tax |
41.0 |
17.3 |
9.2 |
57.5 |
|
Pre-exceptional RoRE |
19.8% |
24.7% |
8.4% |
14.9% |
INDEPENDENT REVIEW REPORT TO INTERNATIONAL PERSONAL FINANCE PLC
Conclusion
We have been engaged by the group to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 which comprise the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated cash flow statement and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with UK adopted IASs. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410, however future events or conditions may cause the group to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of financial information
In reviewing the half-yearly report, we are responsible for expressing to the group a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report.
Use of our report
This report is made solely to the company's directors, as a body, in accordance with the terms of our engagement letter dated 9 June 2026. Our review has been undertaken so that we might state to the company's directors those matters we have agreed to state to them in a reviewer's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone, other than the company and the company's directors as a body, for our work, for this report, or for the conclusions we have formed.
PKF Littlejohn LLP 30 Churchill Place
Statutory Auditor London
29 July 2026 E14 5RE
Notes
This report has been prepared to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The report should not be relied on by any other party or for any other purpose. The report contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report, but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, as well as any forward-looking information. Percentage change figures for all performance measures, other than profit before taxation and earnings per share, unless otherwise stated, are quoted after restating prior year figures at a constant exchange rate (CER) for the period to present the performance variance.
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