Provident is aiming to lend some Christmas cheer

By LUCY FARNDON
Updated: 16:14 EST, 23 October 2009

The run-up to Christmas should provide a jump in sales for doorstep lender Provident Financial as struggling consumers do their best to celebrate with festive cheer.

'I can't see people cancelling Christmas,' said chief executive Peter Crook. November and December are usually his biggest months of the year.

That aside, Provident Financial, which lends to one in 20 UK households, is still fairly cautious about the outlook. Crook says consumer confidence is still 'pretty low'.

Provident Financial: Lends to one in 20 UK households

The firm's summer sales were a bit lower than expected, perhaps because consumers decided to forgo their foreign holiday and stay at home instead.

It is still seeing a lot of requests for credit cards, but is turning down 83 per cent of the applications.

'That is why our arrears are low,' said Crook.

Provident has weathered the credit crunch far better than rivals such as Cattles and London Scottish Bank.

Shares in the group edged down 9p to 951p, as it warned that rising unemployment will crimp growth.

House broker Cazenove rates the stock, which yields 6.9 per cent, an 'outperform'.