Home collected credit provider Morses Club has announced its trading update for the 52-week period to 24 February 2018.
Trading performance for the period has been strong and is in line with the Board’s expectations. Total credit issued was up 21% to £174.3m compared to the prior year (FY 2017: £144.1m) with a strong increase in the Company’s gross loan book which is up over 12% compared to 25 February 2017.
Total customer numbers increased by 6% to 229,000 as at 24 February 2018 and the proportion of loans attributable to the highest tier customers increased by 18% against last year, reflecting the continued improvement in the quality of the loan book (FY 2017: 10% increase against previous year). This is a result of our investment in territory builds, which have generated leads from higher quality customers.
As highlighted in our half-year results, notwithstanding the significant growth in total credit issued, we expect to report impairments at the upper end of our guidance range, demonstrating the quality of our customers.
Growth in the Morses Club Card, the first cashless lending product for Morses Club customers, has continued, with over 21,000 customers and over £10.6m of loan balances now on cards (FY 2017: 10,200 customers and £3.9m of loan balances).
The Company launched its first online installment loans product, Dot Dot Loans, in March 2017 in an extended customer test phase. This is another step in the Company’s strategy of developing digital products to build upon its core offering and provide affordable credit to a wider range of customers across the non-standard credit market and we look forward to updating the market further at the time of our results.
Paul Smith, Chief Executive Officer of Morses Club, said “We are pleased with the strong growth we have achieved over the year as we continue to build our customer base and develop new products tailored to meet the needs of our customers, whilst maintaining a clear focus on high-quality growth in our core HCC loan book. The success of the Morses Club Card and development of our Dot Dot online loans product highlight the market opportunity for new, flexible products to complement our core HCC product.”
“Customer relationships and experiences are paramount, and we remain committed to ensuring that our customer needs are balanced with advances in technology to keep our service ethos at the forefront of our market and continue to record consistent customer satisfaction of 95% or more.
“We continue to remain confident in our outlook, with further opportunities for growth both within the HCC and the wider non-standard finance markets.”