Highlights
Strong financial performance and dividend increase
Profit before tax and exceptional items up 9.9% to £196.1m (2012 restated: £178.4m).
Adjusted earnings per share up 11.6% to 112.0p (2012 restated: 100.4p).
Total dividend per share up 10.1% to 85.0p (2012: 77.2p).
Very robust funding position
Core bank facility of £382.5m renewed in January 2014 with lower all-in cost than previous facility.
Gearing reduced to 3.0 times (2012: 3.2 times) through strong capital generation.
Group fully funded to the seasonal peak in 2017.
Excellent growth and returns in Vanquis Bank
UK profit before tax up by 59.5% to £113.7m (2012: £71.3m).
Customer and average receivables growth of 22.2% and 37.5% respectively, reflecting strong momentum from addressing the under-served non-standard credit card market.
Risk-adjusted margin of 34.2% (2012: 34.8%), above minimum target of 30% with arrears remaining at record lows.
Further development of pilot credit card operation in Poland at a cost of £7.6m in 2013 (2012: £3.3m).
Repositioning of CCD progressing well
Development and roll-out of technology to support step-change in agent and branch productivity and reinforce compliance fully on track.
Encouraging start to Satsuma online instalment lending following November 2013 launch.
Profit before tax and exceptional items of £102.5m (2012 restated: £122.9m) reflecting reduction in customer numbers and receivables due to weak demand and tightened credit standards.
Cost savings of £10m delivered in second half of 2013, with a further £26m secured for 2014, including the previously announced headcount reduction of 520, at a one-off cost of £13.7m.
