Morses Club says funders won't provide peak advance

Morses Club updated the market on its funding provision on Tuesday, as its funders chose not to provide a peak advance.

The AIM-traded firm said its current facility of £25m remained in place until 31 March next year, supported by its current two-funder consortium.

It said the funders had continued to grant a deferral of the testing of two covenants, with no breach of the covenants to date.

Additionally, as previously announced, the term-out clause had been extended until January.

“The funders have subsequently confirmed that they have decided not to provide a peak trading advance against the Morses Club loan book for the period from 15 November to 14 February,” the board said in its statement.

“As a consequence, the company will take steps to constrain lending in both the HCC and digital divisions accordingly.”

At 1249 GMT, shares in Morses Club were down 6.47% at 2.25p.

Reporting by Josh White for Sharecast.com.