Provident defends annual results delay amid Neil Woodford-backed £1.3bn takeover bid from rival Non-Standard Finance

Troubled subprime lender Provident has defended its decision to delay annual results saying it needed to “take a few moments” following a £1.3bn takeover bid from smaller rival Non-Standard Finance.

Provident executives hit out at NSF for its “irresponsible and highly opportunistic” approach and pledged to submit a better offer to shareholders.

Read more: Provident slams 'irresponsible and highly opportunistic' takeover bid

NSF’s bid has been backed by more than 50 per cent of Provident shareholders, including leading fund manager Neil Woodford, Invesco Asset Management and Marathon Asset Management.

But the trio also hold significant stakes in Non-Standard Finance.

Chief executive Malcolm Le May told City A.M. he was “very conscious” of the trio’s dual interests in the matter said he had a duty to find the best solution for all shareholders.

He said: “It’s always a shareholder right to accept an offer, I don’t think it’s a particularly good offer.

“My next steps will be to explore all options available and table a better solution for all shareholders.”

He criticised NSF’s plan saying there was “no logic” in breaking the group up and selling its car loans arm Moneybarn and also criticised plans to scrap its digital platform.

NSF questioned Provident’s decision to delay its full year results, due to be published on Wednesday until 13 March.

The company said it was a “highly unusual move which delays the opportunity for shareholders to judge Provident’s recent performance.”

But Le May said the firm needed to “take a few more moments” and that shareholders would understand.

The doorstep lender has seen its share price plunged 84 per cent since May 2017, as it has battled with a financial watchdog investigation, profit warnings and struggles with its credit card business Vanquis Bank.

Non-Standard Finance chief executive John van Kuffeler said the company initially approached Provident with a proposal in January last year.

He said: “That approach was rebuffed and since then Provident has further lost its way.

“However, NSF has extensive management expertise and experience, and the correct strategy to turn Provident around and release significant value by combining it with our own fast-growing businesses for the benefit of customers, employees and investors.”

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Le May said that relations between the two companies were amicable when an initial approach was made last January but he was surprised by the “irresponsible” approach this time around.

He said: “This is a people business, a business of respect and courtesy, they went about it in a different way.”