Struggling Provident Financial set to axe jobs as its losses mount

Embattled doorstep lender Provident Financial will cut jobs at its 600-strong admin department after stinging losses and a dwindling loan book.

The firm will kick off a consultation with staff at its Bradford head office in a bid to save costs at the consumer credit division, which includes loans group Satsuma.

Losses at the consumer credit unit will be £120 million, much higher than the low end forecast of £80 million made by the firm last year, Provvy said today.

The loan book is down to £350 million, from £560 million last year, after customers left in droves following the well-publicised fallout from a botched IT upgrade last year.

The higher-than-expected loss sent shares down 3.65%, 33.6p to 886.4p, making it one of the market’s biggest fallers.

Executive chairman Malcolm Le May has pledged to “rebuild trust” at the former FTSE 100 giant this year after shares plunged by 70% last August following big losses and the exit of chief executive Peter Crook.

It is making “progress” in its search for a chief executive.

Other firms like Non-Standard Finance and Morses have benefited from Provident’s collapse but there were signs of improvement in home credit, now led by veteran managing director Chris Gillespie.

Loan repayments collected rose to 78% from 57% in August.