Morses Club PLC, the UK’s second largest home collected credit lender, provides the following trading update for the 52-week period to 23 February 2019.
Trading performance for the period has been strong and is in line with the Board’s expectations. Total credit issued increased 2.4% to £178.5m compared with the prior year (FY 2018: £174.4m) and the Company’s gross loan book has grown by over 7% compared with 24 February 2018 (5% increase in the core book and 2% as a result of the acquisitions of the Eccles Savings & Loans Limited and Hays Credit LLP assets).
Total customer numbers increased by 2.6% to 235,000 as at 23 February 2019 (FY 2018: 229,000).
The positive momentum surrounding the growth of the Morses Club Card continues. Our first cashless lending product now has 30,000 customers with £15.5m of loan balances on cards (FY 2018: 21,000 customers and £10.6m of loan balances).
On 26 February 2019, Morses Club announced the acquisition of the business and certain assets of CURO Transatlantic limited (“CURO TA”), an online lending business. This acquisition represents a major milestone in the Company’s product diversification strategy, as we develop digital products to meet the changing needs of our customers and broaden our customer base. The acquisition of CURO TA complements those made in our core HCC market, as we continue on our path of sustainable growth.
Paul Smith, Chief Executive Officer of Morses Club, said: “We are delighted by the strong performance we have delivered this year, achieving consistent growth both organically and through acquisitions. The significant consolidation we are seeing across the HCC sector is continuing and the fragmented marketplace has enabled us to make high quality acquisitions, expanding our regional presence.
“The quality of our service and products, which are designed around the needs of our customers, remains paramount as we develop our digital platform and increase our online offering in line with our product diversification strategy. We are particularly excited about the acquisition of the CURO TA assets and the contribution they will make to our digital offering.
“We are confident in our outlook for the coming year, which we expect to be reflected in an increased FY2019 dividend payment for shareholders. We continue to pursue opportunities for growth in both our core HCC market and across the wider non-standard finance sector.”
Notice of Preliminary Results
Morses Club will be announcing its preliminary results for the 52-week period ended 23 February 2019 on 2 May 2019.