Double-digit revenue growth at home credit firm
Home credit business Morses Club has seen revenues, pre-tax profits and customer numbers soar during a year where it has been able to take advantage of the difficulties of West Yorkshire rival, Provident Financial.
Reporting on its annual results to February 25 2018, the Batley-based group this morning said revenue was up 17.1% to £116.6m from £99.6m in the previous year. Pre-tax profit increased by 44.6% to £16.2m, an increase from £11.2m in the previous year.
The total credit issued during the period increased by 21% to £174.4m (FY17: £144.1m), which its said was driven primarily by new territory builds. Morses Club saw a net loan book growth of 19% to £72.8m, a rise from £61.2m, and a 6% increase in customer numbers to 229,000 (FY17: 216,000).
Morses Club recruited 600 agents and managers during the year, which translated into 463 territory builds in FY18. It recorded 21,000 Morses Club Card customers, with £10.6m in loan balances – up from £3.9m in the previous year.
Bradford-based Provident last year issued second profit warnings, saw share price tumble and is undergoing an FCA investigation. Earlier this month, it confirmed it had a 96% take-up of a £330m rights issue as it sought to shore up its finances.
Paul Smith, chief executive at Morses Club, said: “We are very pleased to report that FY18 was an even stronger year for Morses Club, reflecting our continued success in serving our core HCC market, delivering good customer outcomes and careful implementation of our prudent credit policy.
“Our advanced digital platform has improved customer experience and streamlined the lending process, reducing our operating cost ratio and enhancing regulatory compliance. Technology has also enabled us to expand our product offering to provide customers with the flexibility they desire, as well as access a new customer base in the wider non-standard credit market.
“During the year, we have remained committed to our strategy of growing sustainably and focused on integrating new agents into the business. We are excited for the coming year as we look to further strengthen our core business, whilst also developing our complementary product offering.”
