Credit lender International Personal Finance is to make 38 people redundant as part of a restructuring of its Leeds head office.
On joining the firm, new chief executive Gerard Ryan decided that the head office was carrying out too many roles that would be better suited to the country where the operation is.
IPF operates in Poland, Hungary, the Czech Republic, Slovakia, Romania and Mexico,
“We had 58 vacancies resulting from the restructure, 10 roles of which were created overseas,” said Mr Ryan.
“Of these 58 positions 21 roles were filled with existing IPF people.
“In total 38 people will have been made redundant as a result of the UK restructure which will finish in July,” he added.
When the restructure finishes the group will have 150 employees at its head office.
Yesterday IPF reported a strong third quarter following a six per cent increase in customer numbers.
The Leeds-based group said credit issued rose by 16 per cent and revenues were up nine per cent to £162m in the three months to September 30.
The group reported “strong progress” in its Mexican operation following a trial in 18 of its 50 branches to offer existing customers more credit.
Pre-tax profits of £27.2m were in line with the third quarter of 2011 following a £4.1m hit from weaker foreign exchange rates and a £2.5m hit from early settlement rebates.
In the past people settling their debts early had to pay an administrative penalty, but this has been reduced to a very small charge.
This means IPF is earning less revenue than it did historically. By this time next year this negative effect will have worked its way through the comparatives.
Mr Ryan said IPF is expanding its lending criteria.
“Where customers have proved their credit history we can offer them larger loans in future,” said Mr Ryan.
“We’re seeing a big tick up in Hungary.
“We’ve decided we should take more risk there. We feel we can take on more.”
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