Wonga braced for sharp fall in its profits

Tim Wallace
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Wonga has scrapped its puppet adverts
Online payday lender Wonga is set to report profits of £50m for 2013, down from £84.5m the previous year, it was reported yesterday.

The high-profile firm has been beset with problems in the past year, with founder Errol Damelin stepping down as chairman and chief executive Niall Wass quitting after just six months in the top job.

Andy Haste is currently in charge as executive chairman.

The roughly 41 per cent fall in profits is due partly to poor performance in overseas markets, and in SME lending, according to Sky News.

And the firm has also been hit by a charge for sending debt collection letters to customers from fictional agencies and lawyers.

A Wonga spokesman said the £50m figure was “speculative”. Its results will be published next Tuesday.

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