International Personal Finance (IPF) H1 2025 earnings summary

Executive summary

• Profit before tax for H1 2025 rose 5.5% year-on-year to GBP 49.9 million, exceeding internal targets, with constant currency growth of 18.8%.

• Strong demand for credit and operational execution led to an 11% increase in customer lending and a 12% rise in closing net receivables at constant exchange rates.

• Interim dividend increased 11.8% to GBP 0.038 (3.8p) per share, reflecting confidence in future performance.

• Impairment rate improved to 8.3% from 10.5%, well ahead of target, due to excellent customer repayment performance.

• Robust funding position with GBP 92 million headroom and new GBP 50 million bank facilities secured.

Financial highlights

• Revenue for H1 2025 was GBP 347.8 million, down 6.4% year-on-year, but up 1.9% at constant exchange rates.

• Pre-exceptional EPS increased 12.7% to GBP 0.142 (14.2p); reported EPS up 61% due to prior year exceptional charges.

• Annualised revenue yield decreased to 53.3% from 55.4%; cost-income ratio rose to 61.9%.

• Annualised ROE improved to 14.7%; pre-exceptional RORE at 15.4%.

• Net borrowings at period end were GBP 558 million; gearing ratio stable at 1.2x.

Outlook and guidance

• Second half profit expected to be similar to H2 2024, with full-year receivables growth of around GBP 150 million.

• Full-year lending growth forecasted at 7%-9%; European home credit receivables growth expected at 15%-20%.

• Group impairment rate to move towards 14%-16% over the next two years as Poland's business scales up.

• Continued investment in digital products, geographic expansion, and technology to drive future growth.

• Equity-to-receivables ratio expected to approach 40% by 2027.