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Morses Club PLC on Thursday reported a swing to loss in financial 2022, due to a higher level of unaffordable lending claims, but recorded increased revenue.
Morses Club shares were trading 4.3% lower at 5.55 pence each in London on Thursday morning.
Morses Club is a Nottingham, England-based home collected credit provider and online lender.
In the year to February 26, the firm swung to a pretax loss of £42.9 million from a profit of £500,000 a year before.
The company attributed this to an exceptional item of £46.8 million, relating to a higher level of unaffordable lending claims in its Home Collected Credit division.
More positively, revenue grew 11% to £111.4 million from £100.2 million.
This was primarily due to increased credit issued in its Digital division.
Further, the company said it recovered from many challenges presented by Covid-19 and wider market conditions, and its total customer number increased year-on-year.
Going forward, Morses will work on ‘reshaping’ the company to ‘produce sustained development for both divisions.’
‘We remain focused on continuing to build the trading position of the group and are convinced that the reshaping of our business will help the company move forward from the challenges it currently faces. Our position as the only remaining HCC lender of scale in the UK and the commitment we have to the sector, along with our core expertise in serving customers in this market will help secure our longer-term future, despite the impact on profitability for the period as well as into financial 2023,’ Chief Executive Gary Marshall commented.
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