Non-Standard Finance PLC FCA review of high-cost credit and overdrafts (4176Q)
November 29 2016 - 2:58AM
UK Regulatory
TIDMNSF
RNS Number : 4176Q
Non-Standard Finance PLC
29 November 2016
Non-Standard Finance plc
('Non-Standard Finance', the 'Company" or the 'Group')
FCA review of high-cost credit and overdrafts
29 November 2016
The Board of NSF has noted this morning's announcement that the
FCA is inviting further evidence and feedback regarding high-cost
credit, including a review of the payday loan price cap that was
introduced in 2014.
Commenting on today's announcement, John Van Kuffeler, Chairman
of NSF said:
"We welcome the FCA's review and will fully engage with it. The
sustainability of our sector depends upon a regulatory framework
that fosters high quality, well-capitalised businesses whose
culture is focused on delivering positive outcomes for customers.
We also welcome the FCA's caution regarding the possible unintended
consequences of pushing operators too far so that the regulations
'choke off the supply of lending' and effectively force consumers
to seek alternative, unregulated sources of credit."
- Ends -
For more information:
Non-Standard Finance plc
Peter Reynolds, Director, IR and +44 (0) 20 3869
Communications 9026
Bell Pottinger
Olly Scott
Aarti Iyer +44 (0) 20 3772
Molly Stewart 2500
About Non-Standard Finance
Non-Standard Finance plc was established to acquire and grow
businesses in the UK's non-standard consumer finance sector. Under
the direction of its highly experienced main board, the Company has
now established a sustainable group of businesses offering credit
to the c.12 million UK adults who are not served by mainstream
financial institutions. In addition, the businesses acquired now
have access to increased levels of funding and have benefited from
stronger management controls with more rigorous credit standards;
have refined their product pricing in a number of areas; have
introduced new compliance protocols; and are investing in new IT
infrastructure and systems. These changes have been implemented to
balance the delivery of improved customer outcomes with the
delivery of substantial returns for shareholders.
The Company announced on 7 July 2015 that it had entered into an
agreement to acquire the Home Credit Division of S&U plc
('S&U') which trades as Loans at Home, for an enterprise value
of GBP82.5m, payable in cash, subject to approval by S&U's
shareholders and customary closing conditions. The acquisition
completed on 4 August 2015 following approval by S&U's
shareholders with the final consideration equalling GBP82.4m after
an adjustment for net assets at completion.
On 4 December 2015 the Company announced that it had entered
into an agreement to acquire Everyday Loans, the branch-based
unsecured lending and guaranteed loans business of Secure Trust
Bank PLC, for an enterprise value of GBP235m. The acquisition, that
was funded through a combination of new equity and debt facilities
completed on 13 April 2016, following change of control approval
from the FCA.
In the year ended 31 December 2015, the Group's businesses
generated pro forma revenue of approximately GBP80m and pro forma
adjusted profit before tax of approximately GBP16m. As at 31
December 2015 the Group's businesses had a combined loan book of
approximately GBP143m.
Each of the Group's operating subsidiaries is regulated by the
FCA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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