A top-five used car retailer in 2003, Yes Car Credit has incurred a £6.2m pre-tax loss for the first six months to June 30, 2005, compared with a profit of £5.7m for the same period last year. A total of 15,289 vehicles were sold and financed during the first half of the year, 25% less than in the corresponding period in 2004.
John van Kuffeler, chairman of Provident Financial, says: “The majority of the group is delivering good results. The exception is Yes Car Credit, where a new management team is implementing a comprehensive improvement plan to return the business to profitability during 2006. We are closely monitoring performance against this plan and will keep the business under strategic review.”
Provident has reiterated that Yes Car Credit is expected to make a full-year loss of between £15m and £20m and has gone on the record as saying it would consider selling or closing the company if the new management and a recovery plan fails to reverse its fortunes. Provident’s target is for Yes Car Credit to return to profitable trading during 2006, breaking even. Yes Car Credit was formed in 1997 by Len Newby and Joe Prince with backing from venture capitalists Candover and with mezzanine finance from the Royal Bank of Scotland.