Home collected credit specialist, Morses Club has announced its interim results for the twenty-six-week period ended 26 August 2017.
Highlights from the results include:

·     Strong first half performance with revenue up 14.8% to £54.2m (H1 FY17: £47.2m)

·     Net loan book growth of 16.0% to £65.2m (H1 FY17: £56.2m)

·     Impairment as a percentage of revenue for the period was 26.6% (H1 FY17: 22.5%) remaining within our target range and reflecting our growth plans

·     12.6% increase in customer numbers to 233,000 (H1 FY17: 207,000)

·     Significant increase in territory builds to 434 (H1 FY17: 114), introducing additional high quality customers *

·     Reduced cost / income ratio to 56.4% (H1 FY17: 58.3%)

·     11,100 live Morses Club Cards issued, with loan balances of £4.6m

·     Secured additional funding to increase overall revolving facility from £25m to £40m

·     Adjusted1 profit before tax up at £8.7m (H1 FY17: £8.6m); reported profit before tax up to £6.7m (H1 FY17: £4.6m)

·     Adjusted1 EPS 5.3p (H1 FY17: 5.3p); Basic EPS 3.9p (H1 FY17: 2.7p)

·     Interim dividend 2.2 pence per share (H1 FY17:  2.1 pence per share)

Paul Smith, Chief Executive Officer of Morses Club said “Our strong first half performance demonstrates the success of our credit policy and emphasis on high quality lending, as well as our ability to capitalise on market opportunities to increase our customer base.  In light of the change in market conditions, we have placed considerable emphasis on ensuring that growth is sustainable and we are focused on developing products in line with customer demand and supported by our excellent customer service offering.”

“We have made significant progress with our technology platform underpinning the business operationally, whilst retaining the people aspects of the business that our customers value so highly. We have delivered increased quality revenue and loan book growth, whilst keeping impairments within our target range, giving us confidence in the outlook for the full year.”