August 25, 2017 / 6:30 AM / a year ago

Provident Financial reorganises home credit unit after profit warning

Aug 25 (Reuters) - Subprime lender Provident Financial , which has lost close to 60 percent of its market value this week after a second profit warning in quick succession, said on Friday that it had replaced the managing director of its beleaguered home credit business.

The firm’s earnings have been hit by unresolved problems at its door-to-door lending business, with its woes compounded by an additional disclosure on Tuesday that its banking unit has halted sales of a loan repayment product pending an investigation by Britain’s financial watchdog.

Newly appointed Chairman Manjit Wolstenholme announced changes to the consumer credit division’s management structure on Friday.

Chris Gillespie, who had been managing director of Provident’s consumer credit division before leaving in 2013, is to rejoin the firm as managing director of the home credit business. He is replacing current business head Andy Parkinson with immediate effect.

“Gillespie’s focus as the new managing director will be on re-establishing relationships with customers, bringing collections back to a normal level, and stabilising the operation of the business,” Provident said.

Luke Enock will take on the role of deputy managing director of the home credit business and Greg Cant, director of corporate finance and development at Provident will help with project management. ($1 = 0.7806 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Rachel Armstrong)

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