The business, which name seems on Newcastle United shirts, published a loss in GBP37.3m, pursuing a sizeable decrease in British consumer lending while it attempts to clean up its tarnished image.
Earnings declined to GBP217.2m in the span.
It’s a further slide in earnings for the financial institution after gains for 2013 halved to GBP39.7m as it racked up costs relating to a scandal over fake authorized words.
Exec chairman, Andy Hurry, mentioned: “We know it is going to take the time to repair our reputation and obtain an accepted place in the financial-services sector, but we are determined to deliver on our plans and serve our clients in the right way.”
In line with its prediction in July it will be smaller and less lucrative within the near term, Wonga documented that lending volumes dropped by 36 per cent to GBP732m this past year, from GBP1.1bn in 2013.
It made 2.5 thousand payday loans in great britain last year against 3.7 million in 2013, as well as the number of customers dropped from around one-million to 575,000 in the UK.
However, its default rate improved from 6.9 % to 6.6 per cent.
Like its rivals, Wonga also confronts the the chance of a fresh levy if Labour wins the General Election, with all the move offering in the Party’s manifesto.
In October it said it wrote off a total of GBP220m of debt belonging to 330,000 customers after admitting making loans to people who couldn’t afford to reimburse them.
Its business is downsizing as it tries to clean-up its damaged reputation in an industry whose practices have drawn the Arch Bishop of Canterbury as well as criticism from politicians.
Last June, Wonga, which holds Newcastle, and has a handle Blackpool FC that concludes this time, was ordered to pay damages of GBP2.6m by the Financial Conduct Authority after sending threatening legal letters from bogus attorneys to 45,000 clients.
Mr Hurry, appointed last summer, has promised to clean up the business and acknowledged it had made “serious mistakes”.
He said the company, which has been strongly criticised by MPs over rates of interest of over 5 5,000 %, must evaluate rates, costs and fees and no longer be seen as targeting the young. vulnerable and the
Mister Hurry mentioned at the time of the statement in Feb: “Wonga may no longer sustain its high-cost base which should be considerably lowered to reflect our growing company and marketplace.”
After writing the offer Derek Llambias, then managing director of Newcastle United, stated: “We are creating a club that can often compete for top prizes at the greatest amount.
Before this year, Wonga declared plans to cut at 325 jobs under a brand new method that will see it become smaller and not as lucrative, under changes to make sure that it gives sensibly and pretty.
In October 2012, Newcastle United agreed a four-year deal with Wonga to get to be the direct commercial patron of the club’s.
This week’s figures are not likely to range from the cost of the work cuts.
The effect of a cap on cash advance charges in-force since the start of the year can be not anticipated to be a factor in the 2014 figures.
“As everyone understands, a strong commercial programme is vital to this goal and I’m delighted to welcome Wonga into the fold as our guide commercial associate, alongside Puma and Sports Direct.”
Along with sponsoring the team top from the beginning of the 2013/14 season, Wonga agreed to commit at least GBP1.5m to support the club’s school and Foundation Business Structure which aids 15 to 16 year-olds locate work.
Wonga pronounced it would be eliminating its name from children’s replica kit sold by Newcastle United but not until the 2016/17 time., last Nov