Provident Financial share price falls 61 per cent: Woodford-backed firm warns again on profits and chief exec quits

Provident Financial shares were in freefall this morning, falling 61 per cent in opening trades after the firm announced it had been hit by another profit warning.

And as business spirals downwards, the chief executive has quit with immediate effect.

Over £1.5bn has been wiped off the Neil Woodford-backed firm’s market capitalisation in a matter of minutes.

The firm has been struggling to collect debts. It admitted this morning current collections performance is running at 57 per cent, compared with 90 per cent posted in 2016.

The FTSE 100 said the “extent of this underperformance and the elongated period of time required to return the performance of the business to acceptable levels invalidates previous guidance”.

Provident Financial recut its numbers and is forecasting a pre-exceptional loss of between £80m and £120m.

Chief executive Peter Crook has stepped down “in the circumstances”.

Read more: Provident Financial has now had £1.6bn wiped off its shares since May

Executive chairman Manjit Wolstenholme said: “I am very disappointed to have to announce the rapid deterioration in the outlook for the home credit business.

“Protecting the group’s capital base through withdrawing the interim dividend and in all likelihood the full-year dividend is the appropriate response to maintain the highly valuable franchises of Vanquis Bank, Moneybarn and Satsuma. My immediate priority is to lead the turnaround of the home credit business.”

The Bradford-based lender launched an operational shake-up earlier this year. But disheartened staff are reported to be less than enthused with job changes and cuts. Analysts have suggested employees may no longer be bothering to chase overdue debts.

Read more: Over half a billion pounds wiped off Provident Financial market cap