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Analysts back Morses Club after lender’s strong start to the year

Morses Club  CEO Paul Smith
Morses Club CEO Paul Smith
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Doorstep lender Morses Club has reported a strong start to the year ahead of its Annual General Meeting.

The Leeds-based lender, which has grown quickly in recent years, said its loan book was ‘well ahead’ of last year.

Paul Smith, chief executive, said: “The board is pleased to report that trading in the first four months of our current financial year has been strong, in line with expectations.

“High quality customer numbers and the net loan book continue to be well ahead of last year and impairments remain within our guidance range, reflecting the success of our strategy of focusing on higher quality lending.

“We welcome the conclusion of the FCA’s high-cost short-term credit review and are pleased to see the FCA’s proposals to introduce themes across the sector which are consistent with Morses Club’s values of treating our customers fairly. We will continue to work closely with the FCA and Trade Associations through the consultation period.

“We are confident that our continued focus on developing technology to enhance and complement our core Home Collect Credit offering, along with our unwavering commitment to put customers at the heart of our business to ensure fair outcomes, position us well to deliver continued growth going forward.”

Analysts at Peel Hunt said that Morses was delivering the highest return of any non-traditional lender and maintianed a Buy recommendation its shares.

Fincap agreed, saying Morses was “benefiting from the increase in quality customers while the regulatory uncertainty from the High Cost Credit review is reducing”.