Morses Club announces sizeable losses

Sub-prime lender, Morses Club has announced major losses in the past six month

The firms finances fell to a loss of almost £21 million for the period, against a profit of £1.8 million last year.

The lender announced that it has been forced to “take steps” to constrain lending in key areas despite its existing £25 million funding facility remaining in place until 31st March.

The company has again warned that if it could not defer debt payment or secure new funding beyond that date then “significant doubt” would be cast on the company continuing to trade.

The news follows warnings that Morses could enter insolvency unless it agrees on a Scheme of Arrangement after it suspended processing claims made against its unaffordable loans.

Gary Marshall, CEO of Morses Club, said “We continue to face the ongoing challenge of customer redress claims, the processing of which has been paused since 11 August. We are working tirelessly to deliver the detail behind a potential Scheme of Arrangement and remain deeply committed to the sector.”

“We are focused on securing the future of the group and are reshaping the business to help the company move forward from the challenges it currently faces. We continue our discussions with the Financial Conduct Authority to progress on a potential Scheme of Arrangement. Any potential Scheme of Arrangement would remove the uncertainty of continued redress claims and remove the risk of ongoing liabilities with regard to volatility in the level of complaints.”

“I remain confident that we can work through this in a constructive way, as it is vital that our customer demographic continues to be served by a provider which understands the market and operates in a socially conscious way.”