Morses Club PLC Trading update and notice of interim results (6100I)
01 September 2016 - 4:00PM
UK Regulatory
TIDMMCL
RNS Number : 6100I
Morses Club PLC
01 September 2016
1 September 2016
Morses Club PLC
Trading update and notice of interim results
Morses Club PLC ("the Company"), the UK's second largest home
collected credit lender, provides the following trading update for
the 26-week period to 27 August 2016.
Trading performance for the period has been strong and in line
with expectations. Total credit issued increased by 16% to GBP66m
compared to the same period last year, reflecting new territory
builds, strategic growth initiatives and acquisitions. Impairment
for the period was in line with the lower end of the Company's
target range.
Customer numbers increased by 2.4% to approximately 208,000 as
at 27 August 2016, driven by territory builds and acquisitions.
The gross loan book remained level against last year, however
the proportion attributable to the Company's highest tier customers
increased by 6% compared to 29 August 2015. This reflects the
success of the Company's credit policy to focus on higher quality
lending.
The Company continues to make good progress on the development
of its digital platform to provide innovative new services and
products for its customers.
Notice of Interim Results and maiden dividend
Morses Club will be announcing its interim results for the
6-month period ended 27 August 2016 on Thursday, 6 October 2016 and
confirms that it will declare its maiden dividend (to be paid in Q4
2016) on that date.
Paul Smith, Chief Executive Officer of Morses Club, said:
"The momentum in the business continues following our recent
successful IPO, and demonstrates the resilience of our business
model in challenging economic environments. We look forward to
declaring our maiden dividend at our first results since IPO. The
UK home collected credit sector is well established and, as the
second largest lender in this market, we believe we are well placed
to grow as the uncertainty caused by the outcome of the EU
referendum is likely to cause mainstream lenders to tighten their
underwriting criteria further.
"We also continue to make progress on our strategic growth
initiatives to ensure that we take advantage of the opportunity
that technology gives our industry in interacting with our
customers, providing people who need credit with increased
flexibility and ease in how they can access it."
For further information
Morses Club PLC Tel: +44 (0) 330 045 0719
Paul Smith, Chief Executive Officer
Andy Thomson, Chief Financial Officer
Numis Securities Limited (Nomad and Joint Broker) Tel: +44 (0)
20 7260 1000
Andrew Holloway
Charlie Farquhar
Paul Gillam
Panmure Gordon (UK) Limited (Joint Broker) Tel: +44 (0) 20 7886
2500
Richard Gray
Charles Leigh Pemberton
Camarco
Tel: +44 (0) 20 3757 4984
Ed Gascoigne-Pees
Jennifer Renwick
Notes to Editors
About Morses Club
Morses Club is currently the second largest UK Home Collected
Credit lender with approximately 200,000 customers and
approximately 1,840 agents across 100 locations throughout the
UK.
The Company markets a range of loan products through a
combination of traditional and online marketing channels. A
significant majority of the Company's borrowers are repeat
customers and the Company enjoys consistently high customer
satisfaction scores, of at least 95 per cent.
Morses Club traces its history back over 130 years and entered
the UK HCC market in 1997. The Company merged with Shopacheck
Financial Services in 2015.
About the UK non-standard credit market
The UK non-standard credit market, of which UK HCC is a subset,
consists of both secured and unsecured lending and is estimated to
comprise around 12 million consumers.
Non-standard credit is the provision of secured and unsecured
credit to consumers other than through mainstream lenders. Lenders
providing non-standard credit principally lend on an unsecured
basis and the market is characterised by high frequency
borrowing.
Since 2009, unsecured personal lending has grown from GBP161
billion to GBP244 billion in 2015.
UK Home Collected Credit
UK HCC is considered to be a specialised segment of the broader
UK non-standard credit market. UK HCC loans are typically small,
unsecured cash loans delivered via self-employed agents directly to
customers' homes. Repayments are collected in person during weekly
follow-up visits to customers' homes.
UK HCC is considered to be stable and well-established, with
approximately 3 million people using the services of UK HCC
lenders, of which between 1.5 million and 2 million people borrow
regularly.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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