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News for Members

25 April 2016

Morses Club Plans to List on Stock Market

CCA Member and second largest home credit lender, Morses Club has announced that it plans to list on the stock market with an expected valuation of approximately £150m.

Private equity group, Rcapital is selling part of the stake that it acquired in 2009 as investors show renewed interest in the home credit sector.  Morses Club stated that its decision to list follows regulatory changes which may create opportunities for consolidation within the market following the exit of smaller lenders.

The company currently has 200,000 customers, served by 1800 agents, who are offered loans of up to £400, repayable over 33 weeks at a rate of £20 per week.  

Analysts expect that as the economy improves, collection rates will rise and defaults will fall.  Morses Club achieved revenues of £90.6m and pre-tax profits of £16.8m for the financial year ended February 27, a 30% increase on the previous year.

Home Credit Market Statistics from the FT article:  The UK home credit sector currently comprises approx 3 million customers who represent a fraction of the UK's £240bn unsecured credit market.  The market leader is Provident Financial, a FTSE 100 company with 900,000 accounts.

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