The UK’s second-largest home-collected credit lender, Morses Club, saw cash collections rise five percent in the 27-week period to August 31, 2019, its latest trading update reveals.
The company made “strong progress” in the development of its product diversification strategy, it said, with total credit issued remaining broadly flat at £85.5m and impairments expected to remain within its IFRS 9 guidance range.
Morses is currently undertaking the integration of its recent acquisitions Curo Transatlantic and U Holdings as part of efforts to develop digital products, enabling it to offer banking-style services with various credit services attached.
In February, high-cost short-term lender Curo completed a pre-pack administration sale of part of their loan book to Shelby Finance (trading as Dot Dot Loans), a regulated firm and subsidiary of Morses.
As at August 31, Morses has a total of 224,000 customers.
Paul Smith, chief executive of Morses Club, said: “We are pleased by the performance of the business over the period. Morses Club continues to make strong progress on the development of our product diversification strategy, tailored for our customers across the non-standard credit market.
“We are fully engaged with ensuring that we effectively consolidate our new acquisitions into the Group in line with our principles of financial prudence and excellent customer service. We are fully committed to developing a wider portfolio of products in line with the changing credit needs of our customers and the wider market.
“We successfully launched our new customer portal earlier in the year, and now have circa 27,000 customers in Morses Club who can access their account details digitally, whilststill having the face-to-face service from an agent we have always provided.”