Provident Financial’s spin-off operation International Personal Finance (IPF) saw its share price dip by nearly five per cent today (3 March), after declaring profits before tax of £61.7 million.

The company’s Hungarian business, which had been battered by the recession returned to profitability, while Mexico delivered its first annual profit through a combination of strong customer growth, and an improved cost-income ratio.

IPF's share price was down 4.8 per cent to 198.00 pence, despite having reduced its borrowings by £101.7 million as a result of tightening management of working capital and capital expenditure and, while profits were lower than last year, the company maintained its dividend at 5.70 pence.

At the beginning of the week the company had yet another buy rating reiterated by Citigroup followed by a hold rating from Shore Capital just two days later. 

IPF – tipped by What Investment.co.uk in January (click here to view) – has become a favourite with fund mangers. It is the biggest holding in the Standard Life’s UK Equity Unconstrained fund while HIM Capital’s Nick Brind tipped it for significant growth in 2010.

John Harnett, chief executive officer of IPF, said that the rapid recovery from the recession shows the business’ resilience in difficult economic conditions.

He explained, ‘The achievement of our first annual profit in Mexico is an important milestone, and we continue to make good progress in Romania.

Economic conditions, whilst uncertain, are continuing to improve and although severe weather in Central Europe has affected performance in January and early February, we expect the impact of this to unwind later in the year and so aim to carry the momentum achieved in the second half of 2009 into 2010, and to deliver improved results.’

Elsewhere, Barclays accounted for 30.8 per cent of this morning’s top ten sells. Investors continued to make the most of the increasing share price after reports that the bank’s private equity arm is planning to sell Deb Group, a maker of cleaning products, to Charterhouse in a £325 million deal.

Standard Chartered, meanwhile, entered the top ten sells with investors cashing in on its announcement of an increase in net income.

TD WATERHOUSE
Top ten trades (morning session)
Wednesday 3 March 2010

Buy
1. Prudential 25.2 per cent
2. Royal Bank of Scotland, 13.4 per cent
3. Lloyds Banking Group, 12.2 per cent
4. Desire Petroleum, 11.9 per cent
5. Taylor Wimpey, 8.5 per cent
6. Barclays, 7.5 per cent
7. Pace, 5.8 per cent
8. HSBC Holdings, 5.6 per cent
9. Aviva, 4.9 per cent
10. BP, 4.9 per cent

Sell
1. Barclays, 30.8 per cent
2. Lloyds Banking Group, 19.2 per cent
3. Xstrata, 13.6 per cent
4. Taylor Wimpey, 6.6 per cent
5. Vodafone Group, 5.7 per cent
6. Royal Bank of Scotland, 5.6 per cent
7. Standard Chartered, 5.4 per cent
8. Desire Petroleum, 4.9 per cent
9. Kazakhmys, 4.4 per cent
10. Prudential, 3.8 per cent