Provident share price skyrockets as group announces management shake-up

Shares in Provident Financial Group (LON:PFG) have spiked more than 20 percent in London this morning, as the company unveiled a management shake-up at its troubled lending unit, bringing back a former executive to lead the division. Today’s rise comes at the end of a turbulent week for the FTSE 100 group, whose shares plummeted more than 66 percent on Tuesday after the company issued a profit warning, scrapped its dividend and announced the departure of its chief executive.

As of 09:42 BST, Provident’s share price had soared 21.53 percent to stand at 909.08p. The shares, however, remain on track to post a more than 50-percent loss for the week.

Provident announced in a statement this morning that the group’s executive chair Manjit Wolstenholme had started a review of the group’s home credit business. Chris Gillespie, who had previously worked for the FTSE 100 group but had stepped down in 2013 to pursue career opportunities elsewhere, has been appointed Managing Director of the division, replacing Andy Parkinson, with immediate effect. 

Luke Enock, who will continue his role leading Satsuma and the analytics agenda for CCD, will now also take on the role of Deputy Managing Director of the home credit business where he will also be joined by Greg Cant, Director of Corporate Finance and Development at Provident.

“My review of the business is ongoing as we move towards stabilising the Provident home credit business,” Wolstenholme commented in the statement. “These are my first appointments and I intend to work closely with the new team on turning the home credit business around and to putting a plan in place to deliver good results for the company.”

The Telegraph quoted Shore Capital analyst Gary Greenwood as commenting that the broker welcomed “this decisive action to try and stabilise and subsequently turnaround the home collected credit business”.

“To have found an experienced industry executive that was willing to take on the role so quickly is a small positive surprise after the week’s earlier disappointments,” the analyst pointed out. 

As of 10:08 BST, Friday, 25 August, Provident Financial plc share price is 914.00p.