Home credit provider sees rise in customer numbers

Home credit business Morses Club has seen a 13% increase in customers to 233,000, with total credit issued standing at £82m.

This has led to a rise in revenue of 14% to £54m and profits of £8.7m. In its half-year interim results, the Batley-based group said the strong first half performance demonstrated the success of its credit policy and high quality lending.

The company achieved a 24.7% increase in total credit issued to £82m (H1 FY17: £66m) through a combination of new territory builds and core business growth, with an increase in customer numbers of 13% to 233,000 (H1 FY17: 207,000).

Earlier this year, the business signed a £15m loan facility which took its overall revolving facility to £40m. It is using the funding to support the growth of the company, which saw around 550 self-employed agents and managers join the group.

Paul Smith, chief executive, 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.”