Based on the successful execution of International Personal Finance Plc's growth strategy and continued significant growth potential, the Board is pleased to declare a 12.1% increase in the final dividend to 6.5 pence per share. This is in line with the Group's progressive dividend policy and brings the full-year dividend to 9.2 pence per share (2021: 8.0 pence per share), an increase of 15% on 2021 and representing a pre-exceptional payout rate of 44% (2021: 43%). This is a higher payout rate than the 40% minimum rate within their financial model and, as previously indicated, the Board is utilising surplus capital above their 40% equity to receivables ratio to pay a higher rate whilst the business rebuilds both scale and their returns to the target range of between 15% and 20%. Subject to shareholder approval, the final dividend will be paid on 5 May 2023 to shareholders on the register at the close of business on 11 April 2023. The shares will be marked ex-dividend on 6 April 2023.
Other Financial Highlights:
- Reported profit before tax of £77.4m (2021: £67.7m) up 14.3%, with all three business divisions delivering profitable performances.
- Customer lending and receivables growth of 14% (at constant exchange rates (CER)), with all three divisions delivering strong growth
- Customer repayment performance remains robust and, together with continued tight credit standards, delivered an impairment rate of 8.6%
- Headroom on funding facilities of £76m, supports the Group's growth plans into 2024
- Equity to receivables ratio of 51% at 2022 (2021: 51%), underpins growth plans and progressive dividend policy.
