Morses Club trading in line, credit issued down slightly
Doorstep lender Morses Club said on Tuesday that current trading remains in line with expectations, with customer numbers stable but credit issued down a touch on the year as customers borrow less frequently.
A day after announcing the acquisition of digital current account provider U Account, the company said it has had a busy first four months of the year, making "significant" progress with its digital product diversification strategy, enabling customers to access credit flexibly.
Morses said the acquisitions of U Account, and of certain assets of online loan provider CURO earlier this year, have increased its customer base by more than 25% and will accelerate its ability "to offer a wider range of lending products to suit the financial needs of the non-standard credit market".
"We are working hard to ensure that these businesses are fully aligned with Morses Club's core ethos of high-quality lending and prudent financial stewardship, and that we deliver excellent customer service," the company said.
Both businesses are expected to be accretive to earnings by 2021.
At 1315 BST the shares were down 4.8% at 142.85p.