26 Jun 2018 07:00
26 June 2018
Morses Club PLC
AGM STATEMENT
Positive momentum and regulatory outlook
At the Annual General Meeting to be held in Leeds today, Paul Smith, Chief Executive Officer of Morses Club, will make the following trading statement covering the period from 26 February 2018 to 25 June 2018:
"The board is pleased to report that trading in the first four months of our current financial year has been strong, in line with expectations. High quality customer numbers and the net loan book continue to be well ahead of last year and impairments remain within our guidance range, reflecting the success of our strategy of focusing on higher quality lending.
"We welcome the conclusion of the FCA's high-cost short-term credit review and are pleased to see the FCA's proposals to introduce themes across the sector which are consistent with Morses Club's values of treating our customers fairly. We will continue to work closely with the FCA and Trade Associations through the consultation period.
"We are confident that our continued focus on developing technology to enhance and complement our core Home Collect Credit offering, along with our unwavering commitment to put customers at the heart of our business to ensure fair outcomes, position us well to deliver continued growth going forward."
The results of the AGM will be announced following the conclusion of the meeting later today.
Ends
For further information please contact:
Morses Club PLCPaul Smith, Chief Executive OfficerAndy Thomson, Chief Financial Officer
| Tel: +44 (0) 330 045 0719 | ||
Panmure Gordon (UK) Limited (Nomad and Joint Broker)Richard Gray / Fabien Holler / Atholl Tweedie (Corporate Finance) Charles Leigh-Pemberton (Corporate Broking)
| Tel: +44 (0) 20 7886 2500 | ||
finnCap (Joint Broker) Jonny Franklin-Adams / Emily Watts / Anthony Adams (Corporate Finance) Tim Redfern / Richard Chambers (Corporate Broking)
| Tel: +44 (0) 20 7220 0500 |
| |
CamarcoJennifer Renwick Ed Gascoigne-Pees Kimberley Taylor | Tel: +44 (0) 20 3757 4994 |
| |
Notes to Editors
About Morses Club
Morses Club is the second largest UK Home Collected Credit (HCC) lender with 229,000 customers and 2,030 agents across 98 locations throughout the UK.
The Company offers a range of loan products to its customers through its extensive self-employed agent network. The majority of the Company's borrowers are repeat customers and the Company enjoys consistently high customer satisfaction with scores of 95% or above.
The Company is using technology to broaden its offering and provide new products to ensure customers can access credit with the flexibility they require. In April 2016, its cashless lending product, the Morses Club Card, was introduced, enabling its customers to buy online as well as on the high street. Dot Dot Loans, the Company's first online instalment product, was launched in March 2017.
Morses Club successfully listed on AIM in May 2016.
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 10 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 February 2014, unsecured personal lending has grown from £161 billion to £209 billion in February 20181.
1 Source: Table J Bank of England Money & Credit Report February 2018
About 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 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 1.6 million2 people using the services of UK HCC lenders.
2 High Cost Credit Review ANNEX 1 - July 2017