Home collected credit specialist Morses Club has announced strong preliminary results as it reported strong annual profit growth as both credit issued and customer numbers rose.
Morses Club’s revenue for the 52 weeks to February 23 rose by 0.3% to £117million, but on a proforma, like-for-like basis, it rose 6.%. Morses Club is providing proforma results to adjust for a change in accounting standards since the previous financial year’s results.
Statutory pretax profit rose 26% to £20.2 million, and 15% to £22 million on an adjusted basis whilst credit issued rose 2.4% to £178.5 million, net loan book growth was 6% proforma and like-for-like, while customer numbers increased 2.6% to 235,000.
Paul Smith, Chief Executive Officer of Morses Club, said “FY19 has been a strong year for Morses Club as we have continued to develop our core offering which is increasingly enabled through our complementary technology platform, grown cashless lending through the Morses Club Card, and made a number of acquisitions. These have all contributed to the sustainable growth of the loan book, customer numbers, increased levels of revenue and profit, as well as the maintenance of a base of high-quality lending.”
“We are delighted by the robust performance of the Group across all our key financial metrics as we continue to 3 deliver consistent returns for our shareholders, whilst keeping customers and their needs at the heart of the business.”
“Technology remains an important enabler for our strategy. The introduction of a customer portal, with full rollout in 2019/20, means that the end-to-end customer journey is digital at the points that the customer wants and not a replacement of the agent service they have come to know and trust. We believe that it is precisely this kind of ability that will assist us in keeping the home collected credit numbers in scope whilst others in the market may struggle with growth following the FCA’s changes to the way in which home collected credit sales can be enacted. Indeed, trading conditions in the home collected credit market for the current year are challenging and whilst Morses Club is equipped to steer a steady course in such conditions, it remains to be seen whether or not smaller players will have the ability or appetite to do so.”
“On behalf of the Board, I would like to thank our dedicated team of employees, as well as the network of agents, who have worked hard to deliver another year of strong performance. Our proven ability to develop new products and services for our customers, as well as the continued opportunities for growth both organically and through acquisition, give us confidence in the outlook for the full year.”