Belfast Telegraph

Provident shares boosted after doorstep lender gets new boss

Malcolm Le May will take the hot seat with immediate effect.

City of London stock
City of London stock

Shares in Provident Financial were on the rise after the troubled subprime lender announced the appointment of a new chief executive.

The group, which is attempting to bounce back from a torrid 2017, said that Malcolm Le May will take the hot seat with immediate effect.

Mr Le May, a former Provident director, comes with a strong corporate track record, having served as co-head of banking for Barclays in New York and head of investment banking at UBS in Europe.

He has also held down jobs at ING Barings and Morley Fund Management.

Shares were up over 5% in morning trading to 705p following the news.

“The board believes that Malcolm Le May is an outstanding candidate for the role, given his existing knowledge of the group, his deep knowledge of the business and sector, his regulatory understanding and turn-around and leadership skills,” Provident said.

Mr Le May’s appointment follows the death of the group’s executive chairman Manjit Wolstenholme late last year.

Stuart Sinclair has been named as interim chairman while the board begins the search for a permanent head.

Earlier this month Provident warned its consumer arm will book full-year losses at the upper end of guidance, with the lender blaming a poorly executed change of strategy.

As part of efforts to shore up the business, Provident launched a new home credit model last year with the aim of moving from self-employed door-to-door agents to full-time “customer experience managers”.

It came after a brutal few months in which it issued a string of profit warnings and saw its shares tank.