Home credit specialist, Morses Club has provided its latest trading update for the 26-week period to 25 August 2018. The company has reported a 4.3% rise in the credit it issued during the first half of 2018. Trading in line with the Board’s expectations with total credit issued increased to £85.7m compared to the same period last year (H1 2018: 25% to £82.2m). Cash collections were up 11.9% (H1 2018: 12.7%).
Demand for the Morses Club Card, its cashless lending product, has continued to be strong, with in excess of 27,000 customers holding over £13.1m of loan balances on cards. This is a rise from 11,000 customers and £4.6m of loan balances during the first half of the last financial year. It said its Dot Dot Loans continued to develop, providing useful customer insights and learnings.
The business has performed strongly in the period, with trading in line with the Board’s expectations. Total credit issued increased by 4.3% to £85.7m compared to the same period last year (H1 2018: 25% to £82.2m). Cash collections were up 11.9% (H1 2018: 12.7%) and impairments are still expected to be reported within the Company’s IAS 39 guidance range.
Paul Smith, Chief Executive Officer of Morses Club, said “We are pleased with our first half performance as we have delivered high-quality growth in our core HCC loan book, whilst remaining focused on good customer outcomes. We have been working hard on implementing best-in-class operational controls and streamlining our lending process, whilst ensuring we always put our customers first. We are encouraged by the continued demand for the Morses Club Card, which is fundamental to our cashless strategy and offers our customers the flexibility they have asked for. We are confident in our outlook for the rest of the current year and remain positive on opportunities in both the HCC and wider non-standard finance markets.”