Morses Club PLC Update on Peak Advance Funding (3718G)
15 Novembre 2022 - 8:00AM
UK Regulatory
TIDMMCL
RNS Number : 3718G
Morses Club PLC
15 November 2022
15 November 2022
Morses Club PLC
Update on Peak Advance Funding
Morses Club PLC ("Morses Club", the "Company" or, together with
its subsidiary undertakings, the "Group"), an established provider
of non-standard credit services, provides the following update on
its funding provision.
The Group's current facility of GBP25m remains in place until 31
March 2023, supported by the present two funder consortium. The
funders have continued to grant a deferral of the testing of two
covenants, and there has been no breach of the covenants to date.
Furthermore, as previously announced, the term-out clause has been
extended until January 2023.
The funders have subsequently confirmed that they have decided
not to provide a peak trading advance against the Morses Club loan
book for the period from 15 November 2022 to 14 February 2023. As a
consequence, the Company will take steps to constrain lending in
both the HCC and digital divisions accordingly.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014. The
person responsible for this announcement is Graeme Campbell, Chief
Financial Officer.
For further information please contact:
Morses Club PLC Tel: +44 (0) 330
Gary Marshall, Chief Executive Officer 045 0719
Graeme Campbell, Chief Financial Officer
Peel Hunt (Nominated Adviser) Tel: +44 (0) 20
Paul Shackleton / Andrew Buchanan / Sam Milford 7418 8900
(Investment Banking Division)
Camarco Tel: +44 (0) 20
Jennifer Renwick / Charlotte Hollinshead 3757 4994
Notes to Editors
About Morses Club
Morses Club is an established provider of non-standard credit
services in the UK. The Group consists of Morses Club, the UK's
largest home collected credit ("HCC") provider(1) , and Shelby
Finance Limited, Morses Club's Digital division, which operates
under the online brand of Dot Dot Loans, an online lending
provider. The Group's growing Digital capabilities and scalable,
highly invested IT platform has enabled Morses Club to deliver a
range of lending products to the non-standard credit market.
UK HCC is considered to be a specialised segment of the broader
UK non-standard credit market. UK HCC loans are typically small,
unsecured loans delivered directly to customers either remotely or
in their homes.
Morses Club's HCC division is the largest UK Home Collected
Credit (HCC) lender(1) with 143,000 customers throughout the UK.
The HCC division enjoys consistently high customer satisfaction
scores of 97%(2) . In 2019 the Company introduced an online
customer portal for its HCC customers, used by 81% of
customers.
The Group's growing Digital division, Shelby Finance, operates
under the online brand Dot Dot Loans which provides online
instalment loans of up to 48 months to c. 39,000 active
customers.
Morses Club listed on AIM in May 2016.
About the UK non-standard credit market
The UK non-standard credit market, of which UK HCC is a subset,
consists of both secured and unsecured lending and is estimated to
comprise around 10 million consumers(3) and total loan receivables
of GBP9.6bn(4) .
Non-standard credit is the provision of secured and unsecured
credit to consumers other than through mainstream lenders. Lenders
providing non-standard credit principally lend on an unsecured
basis and the market is characterised by high frequency borrowing.
Approximately 2 million people move annually between standard and
non-standard markets (4) .
Since February 2014, unsecured personal lending has grown from
GBP161 billion to GBP225 billion in February 2020. It has since
contracted to GBP197 billion in August 2021(5) .
(1 Based on Net Loan Book of GBP45.3m as at 28 August 2021 2
Independent Customer Satisfaction Survey conducted by Mustard 3 FCA
High Cost Credit Review Technical Annex 1: CRA data analysis of UK
personal debt - July 2017 4 Apex Insight - Non-Prime Consumer
Credit: UK Market Insight Report - December 2020 5 Table A5.2, Bank
of England Money and Credit Bank stats August 2021)
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