Holding(s) in Company

13 January 2023

Morses Club PLC

Holdings in Company

Morses Club PLC ("Morses Club", the "Group", or the "Company"), the established provider of non-standard credit services, was informed on 12 January 2023 that, on the same date, J O Hambro Capital Management Limited ("JO Hambro") sold its entire holding of ordinary shares in the Company, and as a result no longer holds shares in the Company. On 11 January 2023 JO Hambro signed a letter of intention to vote in favour of the Company's proposed Cancellation in respect of 8,810,291 ordinary shares. Accordingly, the Company now has irrevocable undertakings or letters of intent to vote, or procure that any other person votes, in favour of the Resolutions in respect of a total of 59,873,988 Ordinary Shares, representing approximately 44.54 per cent. of the issued share capital of the Company.

Capitalised terms in this announcement, unless otherwise defined, have the same meaning as set out in the Circular to shareholders dated 12 January 2023.

Ends

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Notes to Editors

About Morses Club

Morses Club is an established provider of non-standard financial services in the UK. The Group consists of Morses Club, the UK's largest home collected credit ("HCC") provider1, and Shelby Finance Limited, Morses Club's Digital division, which operates under the online brand Dot Dot Loans, an online lending provider. The Group's growing Digital capabilities and scalable, highly invested IT platform has enabled Morses Club to deliver a broad range of lending products and services to the non-standard credit market.

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.

Morses Club's HCC division is the largest UK Home Collected Credit (HCC) lender1 with 116,000 customers throughout the UK. The HCC division enjoys consistently high customer satisfaction scores of 95%2. In 2019 the Company introduced an online customer portal for its HCC customers, which now has over 95,000 registered customers which is 82% of HCC customers.

The Group's Digital division, Shelby Finance, operates under the online brand Dot Dot Loans providing online instalment loans of up to 48 months to c. 25,000 active customers.

Morses Club 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 12 million consumers3 and total loan receivables of £9.6bn4.

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. Approximately 2 million people move annually between standard and non-standard markets4.

Since February 2014, unsecured personal lending has grown from £162 billion to £225 billion in February 2020. It has since contracted to £197 billion in August 20215.

1 Based on Net Loan Book of £30.2m as at 27 August 2022

2 Independent Customer Satisfaction Survey conducted by Mustard

3 FCA High Cost Credit Review Technical Annex 1: CRA data analysis of UK personal debt - July 2017

4 Apex Insight - Non-Prime Consumer Credit: UK Market Insight Report - December 2020

5 Table A5.2, Bank of England Money and Credit Bank stats August 2021