LEEDS-based Non Standard Finance revealed that it had faced “softer” trading than expected as it delivered a trading update.
In the update for the City, the company said that top line growth had been a key feature of NSF’s performance over the last four years.
It added: “Substantial investment has ensured that each business is well-placed to take full advantage of the significant market opportunities that exist, but the board of NSF is also mindful that after a sustained period of economic growth in the UK, the economic outlook is currently more uncertain than at any point in the last 10 years. As such, it is taking steps to ensure that each of the group’s businesses is well-positioned to manage any future macroeconomic headwinds.”
The trading update added: “Trading overall in the quarter to September 30 2019 has been softer than expected with solid performances by both branch-based lending and home credit, offset by lower volumes in guarantor loans. As a result, it is expected that the group’s normalised full year operating profit in 2019 will be lower than expected but still well ahead of 2018.”
Since June 30 2019, Everyday Loans has traded broadly in line with management’s expectations with strong loan book growth, although not quite at the same rate achieved in the first half of 2019, said NSF.
Bradford-based credit lender Provident Financial rebuffed a hostile £1.3bn takeover offer from Non-Standard Finance earlier this year.