Morses Club PLC Acquisition of Shelby Finance Ltd. (8398T)
January 11 2017 - 1:00AM
UK Regulatory
TIDMMCL
RNS Number : 8398T
Morses Club PLC
11 January 2017
11 January 2017
Morses Club PLC
Acquisition of Shelby Finance Ltd.
Morses Club PLC ("Morses Club" or "the Company"), the UK's
second largest home collected credit ("HCC") lender, is pleased to
announce the acquisition of Shelby Finance Ltd. ("Shelby Finance"),
a provider of online instalment loans.
Shelby Finance is fully authorised by the FCA to provide online
instalment loans and will operate as a subsidiary of Morses Club
PLC.
This acquisition is an important strategic development for
Morses Club as it will accelerate the launch of a new, branded
online instalment loan product. The Company has seen an increasing
number of visitors to its website who are looking for alternatives
to its core HCC offering. The introduction of an online instalment
loan product is the next step in the Company's strategy of
developing digital products to complement its HCC offering and
target a wider range of customers across the UK non-standard credit
market.
Paul Smith, Chief Executive Officer of Morses Club,
commented:
"The acquisition of Shelby Finance is another example of the
progress we continue to make with our strategic plan of using
technology to offer customers a broader range of products,
supplementing our core home collected credit offering and ensuring
customers can access credit with the flexibility they require.
"Outside the HCC sector, there are c. 9 million additional
customers who access the wider non-standard credit market. The
introduction of our new branded online instalment loan product will
enable us to offer these customers access to credit in increasingly
flexible ways with all the benefits of Morses Club's customer
service ethos.
"We anticipate that the new online instalment loan product will
be launched in the first half of our trading year and look forward
to updating the market once the full launch plan has been
finalised."
For further information
Morses Club PLC Tel: +44 (0) 330
Paul Smith, Chief Executive 045 0719
Officer
Andy Thomson, Chief Financial
Officer
Numis Securities Limited Tel: +44 (0) 20 7260
(Nomad and Joint Broker) 1000
Andrew Holloway / Charlie
Farquhar / Paul Gillam
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886
(Joint Broker) 2500
Richard Gray / Charles Leigh
Pemberton
Camarco Tel: +44 (0) 20 3757
Ed Gascoigne-Pees / Jennifer 4984
Renwick
Notes to Editors
Morses Club is the second largest UK Home Collected Credit
lender with over 207,000 customers and approximately 1,840 agents
across 100 locations throughout the UK.
The Company offers a range of loan products to its customers
through its extensive agent network. A significant majority of the
Company's borrowers are repeat customers and the Company enjoys
consistently high customer satisfaction scores of at least 95 per
cent.
The Company is using technology to broaden its offering and
provide new products to ensure customers can access credit with the
flexibility they require. In April 2016 its cashless lending
product, the Morses Club Card, was introduced, enabling its
customers to buy online as well as on the high street.
Morses Club successfully 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 12 million consumers.
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.
Since 2009, unsecured personal lending has grown from GBP161
billion to GBP244 billion in 2015.
UK Home Collected Credit
UK HCC is considered to be a specialised segment of the broader
UK non-standard credit market. UK HCC loans are typically small,
unsecured cash loans delivered via self-employed agents directly to
customers' homes. Repayments are collected in person during weekly
follow-up visits to customers' homes.
UK HCC is considered to be stable and well-established, with
approximately 3 million people using the services of UK HCC
lenders, of which between 1.5 million and 2 million people borrow
regularly.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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