Provident Financial: tentative rebound

Provident Financial, a provider of credit products, posted 1H results

Trader 3

Provident Financial, a provider of credit products, posted 1H results: "Group adjusted loss before tax of £32.6m (H1'19 PBT restated: £80.4m) is favourable when compared to internal plans but lower year-on-year driven by lower revenues, driven by lower receivables, and higher impairment charges driven by Covid-19. The Group reported a basic loss per share of 9.1p for the period down from a basic earnings per share of 9.7p in H1'19." 


The home credit provider decided not to resume paying a dividend yet but results are not as bad as feared.

From a chartist’s point of view, the stock price is trying to escape from a medium term symmetrical triangle pattern thanks to a bullish gap. The volatility breakout on Bollinger bands is a positive signal. If confirmed, this would open the way to a technical recovery towards the resistance level at 260p and 320p in ext (Measured up move target).  Alternatively, a break below 187p would invalidate the bullish bias and would call for a new down leg towards 153p and 135p. 

Source: GAIN Capital, TradingView

More from Equities

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.