Non-Standard Finance PLC Pre-close trading update (8031B)
January 15 2018 - 2:00AM
UK Regulatory
TIDMNSF
RNS Number : 8031B
Non-Standard Finance PLC
15 January 2018
Non-Standard Finance plc
('Non-Standard Finance' or the 'Group')
Pre-close trading update
15 January 2018
Since our last trading update on 29 November 2017, the Group has
continued to make good progress, delivering strong annual loan book
growth and lower rates of impairment than in 2016 in all three
business divisions.
Everyday Loans, our branch-based lending business, remains the
driving force behind the Group's financial performance. At 31
December 2017 the net loan book had reached GBP148.5m (2016:
GBP122.4m), an increase of 21% versus the prior year. Our proven
underwriting and collections processes helped to maintain tight
control of impairment as a percentage of revenue that ended the
year in-line with our expectations. We opened 12 new branches in
2017 and remain on course to open a further 12 new locations during
the first half of 2018, increasing our network to 65 branches.
At Loans at Home, the value of our net loan book at 31 December
2017 was up by 53% to GBP51.2m (2016: GBP33.4m), driven in large
part by the addition of 442 new agents that joined our network
during the year. This also helped to drive customer numbers that
reached 104,100 at 31 December 2017 (2016: 93,600). Whilst the
phasing of loan book growth in December was such that a greater
than expected proportion of revenue will be recognised in 2018, we
have been pleased with the quality of the new agents and the
associated increase in the proportion of quality customers now on
our books (64% in 2017 versus 52% in 2016). This has helped to
maintain tight control on impairment that remained in-line with our
previous guidance. Our focus in 2018 will be to ensure that all of
the new agencies added in 2017 reach critical mass in terms of
customer numbers and that we continue to improve the quality of our
loan book.
Our guarantor loans division comprising George Banco and
TrustTwo, has continued to perform strongly with record lending in
both November and December 2017. At 31 December 2017 the combined
net loan book had increased by 35% on a pro forma basis to reach
GBP48.2m (2016: GBP35.6m). Despite this strong rate of loan book
growth, impairment as a percentage of revenue remained stable. In
2018 we are on course to integrate both brands onto a single
technology platform whilst continuing to deliver strong loan book
growth.
As at 31 December 2017 the Group had cash at bank of GBP11.0m
(2016: GBP5.2m) and gross borrowings of GBP208.1m (2016: GBP87.3m)
leaving total headroom on the Group's debt facilities of
GBP51.9m.
The full year results for 2017 will be announced on 13 March
2018.
This announcement contains inside information.
For more information:
Non-Standard Finance plc
Peter Reynolds, Director, IR and +44 (0) 20 3869
Communications 9026
The Maitland Consultancy
Andy Donald
Peter Hamid +44 (0) 207
Finlay Donaldson 379 5151
About Non-Standard Finance
Non-Standard Finance plc is listed on the main market of the
London Stock Exchange (ticker: NSF) and was established in 2014 to
acquire and grow businesses in the UK's non-standard consumer
finance sector. Under the direction of its highly experienced main
board, the Company has acquired a sustainable group of businesses
offering credit to the c.10 million UK adults who are not served by
(or choose not to use) mainstream financial institutions. Its three
business areas are: unsecured branch-based loans, home-collected
credit and guarantor loans. Each business is fully licensed by the
FCA and now has access to increased levels of funding and has
benefited from stronger management controls; has refined its
product pricing in a number of areas; has introduced new compliance
protocols; and is investing in new IT infrastructure and
systems.
Each of the Group's operating subsidiaries is regulated by the
FCA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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