As part of our ongoing strategy to regularly inform and update investors on key operational performance metrics during the Covid-19 pandemic, IPF is publishing the following information for
· Highlights
Ø Continued improvements in trading performance
Ø Collections effectiveness increased 2 ppts to 97% of pre-Covid expectations
Ø Further increase in credit issued to 60% of pre-Covid expectations
Ø Net cashflow of £7 million reflecting the progressive shift towards growth
Ø Successful bond exchange and refinancing of the Group
· Continued improvements in trading performance
We continued to deliver progressive improvements in our operational performance in October with a further increase in credit issued and a good collections performance. The second wave of the pandemic has resulted in rising Covid cases in all our European markets. Various restrictions have been introduced by governments, but our agents continue to serve their customers effectively. Whilst freedom of movement restrictions are beginning to result in a slight reduction in demand, the expected negative impact on collections for which we had planned has not arisen. In
· Strong collections effectiveness
We continued to deliver a strong level of collections effectiveness, rising to 97% of pre-Covid expectations in October. All of our businesses (excluding
· Good credit issued
The robust collections effectiveness delivered since the half year has enabled a progressive relaxation of credit settings in order to increase lending and reduce the rate of contraction of our receivables portfolio. This strategy has driven an increase in credit issued to 60% of pre-Covid expectations, primarily in our home credit operations in
· Net cashflow generation
Net cashflow generation in October was £7 million. This more modest level of cash generation compared to recent months was expected and reflects our strategic decision to increase lending cautiously to rebuild the portfolio, together with tax payments falling due in a number of our jurisdictions in the month.
· Successful refinancing of the business
As previously reported, a new 5-year bond issue and amended covenant package across all the Group's bonds has been successfully completed. This, together with the Group's bank facilities, totals £560 million of funding with amended covenants that is available to support future growth of the business. This compares to borrowings net of non-operational cash balances of £401 million at the end of October.
Investor relations and media contact:
International Personal Finance
+44 (0)7760 167637 / +44 (0)113 285 6798
A copy of this statement can be found on our website - www.ipfin.co.uk
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This information is provided by RNS, the news service of the
https://news.cision.com/international-personal-finance-plc/r/october-2020-trading-update,c3239020
https://mb.cision.com/Main/19916/3239020/1336514.pdf
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