Provident said the reorganisation of its home credit business would hit profits more than previously expected.
Companies: Vanquis Banking Group PLC
Provident Financial shares plummetted 19% on Wednesday after the FTSE 100 firm told investors that profits in its consumer credit division would fall 48% compared to last year.
The Financial group said the reorganisation of its home credit business, first announced in February, would hit profits more than previously expected.
In a trading update issued on Tuesday, the company confirmed that vacancy levels during the last few months were more than twice as high as it had anticipated, and as a result, the disruption had impacted sales and debt collection.
CEO Peter Crook said he was disappointed to report higher than expected operational disruption, but stressed that the strategic rationale for the change was strong and that he was confident it would deliver "substantial" benefits.
Shares in the company recovered slightly after the 19% fall, settling at c.-16%.