Shares in Provident Financial have soared 15% in morning trading, after the firm announced its plans for a turnaround following a number of profit warnings.
Shares in the financial stock were up 15.5% by 10.15am to trade at 911p, after the firm outlined its recovery plans.
This is welcome news after the shares suffered a shock fall of 70% in August, when the firm issued a second profit warning in just three months, announced it was under regulatory investigation, and saw the departure of its CEO Peter Cook.
As a result, the firm, which is held by fund manager Neil Woodford, was kicked out of the FTSE 100 index and now sits in the FTSE 250.
At the time, Woodford said he would continue to hold the stock, believing the business could "get back on track".
In a trading statement covering the period from 12 July to 12 October, the firm announced outlined how it plans to achieve this, including launching the search for a new CEO.
The problems which led to the share price fall were located in the consumer credit division, and the firm tried to reassure investors that a recovery plan was in place in this area.
It has changed the leadership team of the division, appointed assistant area managers for support, provided additional training for staff and increased contact centre support.
However, Provident also confirmed it would not be paying a full-year dividend.
Manjit Wolstenholme, executive chairman, said: "Since the last update, we have moved quickly to appoint new leadership in home credit who have a deep understanding of the business and recognise the importance of the relationship between our front-line staff and our customers.
"A recovery plan has been developed and a number of actions have already been implemented to restructure the field organisation in order to provide the foundation for delivering the necessary improvement in customer service and financial performance."
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