A slowdown in the rate of loan book growth during the first half spooked investors in Morses Club (MCL), sending the shares down by as much as 8 per cent before recovering some ground. Total credit issued was up 4.3 per cent during the 26 weeks to 25 August, behind the prior year’s 25 per cent growth. Meanwhile, customer numbers were down year on year at 229,000, from around 233,000.
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However, the slowdown represents more of a return to business as usual, the sub-prime lender says, after it recruited a higher number of ex-Provident Financial (PFG) home credit agents last year. Crucially, cash collections were up 11.9 per cent and impairments are expected to be within management’s guided range.
