Lender issues profit warning as CEO steps down

Morses Club an established provider of non-standard financial services has announced that pre-tax profits will be up to 30% lower than expected.

The company says that its cost base of the Home Consumer Credit (HCC) division has been impacted in recent days by a rapid increase in claim volumes submitted via claims management companies. As a result of the scale of the complaints, it is anticipated that costs will increase and impact adjusted profit before tax for the current financial year, ending 26th February 2022.

It now expects its adjusted pre-tax profits for the current financial year, which ends this week, will be “between 20% and 30% below” the current consensus of £7.5 million.

In addition, Paul Smith has left his role as Chief Executive Officer (CEO).

Smith, who has been with the company for 7 years, has stepped down from the board with immediate effect.

The current Chief Operating Officer (COO), Gary Marshall has been appointed as CEO, subject to FCA approval.