In its half-year statement, Provident says the disposal of stock and all branch lease obligations has been completed at a cost in line with the amounts provided in the 2005 financial statements.
In the six months to June, Provident incurred a loss of £500,000 on Yes Car Credit business with existing customers, compared with £6.2m when the division was operating. “We continue to estimate that costs of collection will broadly match the revenue earned,” says the company.
About 800 staff at its headquarters and 27 showrooms lost their jobs just before last Christmas.
In September 2005, Provident Finance confirmed Yes Car Credit had been trading at a loss since 2004, and forecast full year losses of between £15m and £20m.
Provident says in its half-year statement that tighter credit controls have been applied to customers wanting personal loans.