Update: Woodford backs Provident Financial to 'get back on track' despite being 'hugely disappointed'

Second profit warning since June

Jayna Rana
clock • 3 min read

Shares in sub-prime lender Provident Financial plummeted by nearly 70% yesterday after the firm's CEO announced he is quitting his role as the firm unveiled its second profit warning in three months.

The company said it expects to make losses of £80m-£120m as debt collection rates have dropped to 57% compared to a 90% figure last year. As a result, shares had fallen by 67% to trade at 590p on 22 August, and Provident Financial's chief executive, Peter Crook, has resigned from his role. The lender is a favourite UK equity income stock, featuring in the top ten holdings of Neil Woodford's (pictured) £9.5bn Woodford Equity Income portfolio at 4.1%, the fourth largest name in the fund. The manager also holds it in his recently launched £720m Woodford Income Focus fund, where it is ...

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