International Personal Finance plc

Reported pre-exceptional profit before tax was GBP 47.4 million. On a reported basis, profit before tax declined 5% year over year, and on a constant-currency basis it declined 13.5%, which management said was consistent with its plan to invest in growth. Group receivables grew 17% to GBP 1.17 billion, while customer numbers rose 5.4% to 1.743 million and lending grew 18.5% at constant exchange rates. The annualized revenue yield declined to 52% from 53.3% over the last 12 months, the annualized impairment rate increased to 10% from 8.3%, the impairment coverage ratio was about 30.9%, and the annualized cost-income ratio improved to 60.4%. Return on required equity fell to 12.9% from 15.4%, and statutory ROE was 9.1% versus 14.7% a year ago. Debt facilities totaled GBP 820 million, net borrowings were GBP 713 million, and funding headroom was GBP 107 million. Management said returns should remain below the 15% to 20% target through 2026 and 2027, with a return to target levels in 2028, and that the company expects to spend about GBP 5 million more per year for the next 3 years on technology and growth.

Gerard Ryan framed the half as a strong finish for the listed company, emphasizing that the business is going out on a “strong note” ahead of the BasePoint deal. His strategic message centered on the three-part Next Gen strategy: financial inclusion, a smarter operating model, and heavy investment in tech and data. He sounded constructive on the operating outlook, citing strong demand, operational execution, and confidence that the strategy remains as relevant today as when it was launched.

Gary Thompson focused on the financial quality of the half, saying the results were in line with plan and driven by disciplined execution and stable credit quality. He cited GBP 4.6 million of exceptional costs, including GBP 3.3 million for the Czech reorganization and GBP 1.3 million of transaction-related costs, plus a strong funding update: GBP 820 million of total facilities, GBP 713 million of net borrowings, and GBP 107 million of headroom. He also highlighted the SEK 950 million bond pricing, noting a 5.75% margin, and said the blended cost of funding improved to 12% from 12.5% last year.

There was no traditional analyst Q&A in the transcript; management instead used prepared remarks to address the main issues investors would likely care about. They explained that Poland’s mix shift and lower rate caps are weighing on revenue yield for now, but that the new 2-year credit card should support recovery over time. They also addressed Mexico’s lower receivables growth by saying newer channels such as short-term lending and retail finance have smaller tickets and somewhat weaker early-stage credit quality, but this is expected to improve as the portfolio matures.