Morses Club PLC (LON:MCL), an established provider of non-standard credit services, has provided the following update to investors.
The Company announced that it has agreed with its current funding consortium an extension of the term-out clause from September 2022 to January 2023, with the facility remaining in place until 31st March 2023. The funding consortium has also agreed to continue the temporary deferral of the testing of two covenants linked to profitability for a further period until October 2022. Furthermore, the facility has been reduced to £25m from £35m, which is aligned to the revised funding requirements of the Company.
Morses Club is an established provider of non-standard credit services in the UK. The Group consists of Morses Club, the UK’s largest home collected credit (“HCC”) provider1, and Shelby Finance Limited, Morses Club’s Digital division, which operates under the online brand of Dot Dot Loans, an online lending provider. The Group’s growing Digital capabilities and scalable, highly invested IT platform has enabled Morses Club to deliver a range of lending products to the non-standard credit market.
UK HCC is considered to be a specialised segment of the broader UK non-standard credit market. UK HCC loans are typically small, unsecured loans delivered directly to customers either remotely or in their homes.
1 Based on Net Loan Book of £45.3m as at 28 August 2021