Morses Club PLC AGM Statement (2653D)
June 25 2019 - 2:01AM
UK Regulatory
TIDMMCL
RNS Number : 2653D
Morses Club PLC
25 June 2019
25 June 2019
Morses Club PLC
AGM STATEMENT
Significant progress with digital product diversification
strategy
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 24 February
2019 to 24 June 2019:
"We have had a busy first four months of the current financial
year, making significant progress with our digital product
diversification strategy, enabling customers to access credit
flexibly. As we announced yesterday, through our fully owned
subsidiary Shelby Finance Ltd we have acquired U Holdings Limited
(trading as U Account), a leading digital current account provider
offering an alternative to traditional banking by providing a fully
functional agency banking service. In February we announced the
acquisition of the business and certain assets of CURO
Transatlantic Limited ("CURO"), a provider of online loans in the
non-standard credit market.
"These complementary acquisitions have increased our customer
base by over 25% and will accelerate our ability to offer a wider
range of lending products to suit the financial needs of the
non-standard credit market. We are working hard to ensure that
these businesses are fully aligned with Morses Club's core ethos of
high-quality lending and prudent financial stewardship, and that we
deliver excellent customer service. As previously announced,
management anticipate both these businesses should be earnings
accretive by FY21.
"In our core HCC market we continue to focus on high quality
lending and differentiating our offering by delivering best in
class customer experience. In line with this, in March we
successfully launched our customer portal, which has reached 25,000
active users within its first three months and has received very
positive customer feedback.
"We are delighted to welcome our newly appointed CFO, Andy
Hayward, to Morses Club. He brings with him a wealth of experience
in the mobile technology and digital payments space and will play
an important role as we continue to deliver our strategic
plans.
"Despite challenging conditions year to date in our core HCC
market, current trading remains in line with expectations. Customer
numbers are stable, but credit issued is slightly down year-on-year
as customers are borrowing less frequently. We are confident in our
strategy of using technology to diversify and expand our product
offering to serve our customers' needs."
The results of the AGM will be announced following the
conclusion of the meeting later today.
Ends
For further information please contact:
Morses Club PLC Tel: +44 (0) 330
Paul Smith, Chief Executive Officer 045 0719
Andy Thomson, Chief Financial Officer
Panmure Gordon (UK) Limited (Nomad and Joint Tel: +44 (0) 20
Broker) 7886 2500
Fabien Holler / Atholl Tweedie (Corporate
Finance)
Erik Anderson (Corporate Broking)
finnCap Tel: +44 (0) 20
Jonny Franklin-Adams / Emily Watts / Anthony 7220 0500
Adams (Corporate Finance)
Tim Redfern / Richard Chambers (Corporate
Broking)
Camarco Tel: +44 (0) 20
Ed Gascoigne-Pees / Jennifer Renwick / Kimberley 3757 4984
Taylor
Notes to Editors
About Morses Club
Morses Club is the second largest UK Home Collected Credit (HCC)
lender with 235,000 customers and over 1,900 agents across 95
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 97% or
above(1) .
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(2) .
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
GBP161 billion to GBP216 billion in February 2019(3) .
(1 Independent Customer Satisfaction Survey conducted by Mustard
2 FCA High Cost Credit Review Technical Annex 1: CRA data analysis
of UK personal debt - July 2017 3 Source: Table A5.2, Bank of
England Money and Credit Bank stats February 2019)
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 million(2) people using the services of UK HCC
lenders.
(2 High Cost Credit Review ANNEX 1 - July 2017)
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END
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