RE: Interim results for the 26 weeks ended 29 August 202018 Dec 2020 12:50
Let's get this in perspective. Morses Club is unique in that it offers a face to face lending and collection service. Obviously with lockdown in March because of the Covid this greatly impacted the business. But within just three weeks of lockdown the company were able to recommence lending to existing HCC customers remotely.
By July, they had developed a platform which enabled them to restart lending remotely to new HCC customers. The customer response to the new cashless lending and remote collections model has been extremely positive and the new customer portal had over 117,000 new customers as at August 2020 and this has since risen to over 124,000. Obviously the business would have been impacted between March and July with the company unable to take on new customers until the remote platform was up and running in July.
In August 2020, the Group recommenced revised face-to-face lending and collection activity in customer homes, in strict accordance with government social distancing guidelines. Remote lending represented 58% of HCC loans issued in the six months to August 2020, rising to 61% in November 2020, demonstrating that a greater number of customers are choosing to utilise Morses Club's remote lending product.
The company are in a great space now and are continuing to strengthen with their new online platform. Now that adjustments have been made due to the Covid, we will now see real growth towards the end of Q4 through into the new year.
A positve RNS if you look at the bigger picture.