AGM Statement

RNS Number : 5291T

Non-Standard Finance PLC

30 March 2016

 

 Non-Standard Finance plc

("Non-Standard Finance," "NSF", the "Company" or the "Group")

Annual General Meeting Statement

At this morning's Annual General Meeting, ("AGM") Non-Standard Finance's Chairman, John van Kuffeler, will make the following statement:

"The first quarter of 2016 at Non-Standard Finance plc was dominated by two features:

"Our home credit business, Loansathome4u, achieved strong loan growth as compared to the first quarter last year together with slightly improved collections quality and is consequently trading marginally ahead of plan.

"We are currently awaiting Change of Control Permission from the FCA to complete the acquisition of Everyday Loans, which includes Trusttwo, from Secure Trust Bank. This is expected to take place in April. In the meantime, the business is performing in line with our expectations and achieved a year end loan book of £114m, an increase of 26% on the comparable figure of £91m at 31 December 2014.  Adjusted operating profits for the year to 31 December 2015 equalled £17m compared to £15.5m in 2014.

"Completion of the acquisition will result in us having established credible business platforms in our three target areas of home credit, branch-based lending and guaranteed loans which, combined with our central costs, would together have delivered historical operating profits of some £20m. We will measure future profit growth against this benchmark.

"Thus having established the foundations upon which to grow the Group, we are confident of achieving our objective of growing loan books in our three operating businesses by 20% in 2016 while maintaining our current revenue yield, operating margins and conservative approach to underwriting risk."

- Ends -

The Company's AGM is being held today at 11.00 am at 10 Greycoat Place, London, SW1P 1SB.

For more information:

Non-Standard Finance plc John van Kuffeler, Chairman Nick Teunon, Chief Financial Officer & Company Secretary c/o Bell Pottinger	[phone]
Bell Pottinger Olly Scott Aarti Iyer Molly Stewart	[phone]

About Non-Standard Finance

Non-Standard Finance plc was established to acquire companies or businesses in the UK's non-standard consumer finance sector. On completion of the acquisition of Everyday Loans, the Company will have created a sustainable group of businesses offering credit to the approximately 12 million UK adults who do not meet lending criteria for mainstream financial services businesses or who choose not to borrow from them. It will apply its resources to ensure that the businesses acquired by the Company have access to more or better funding; implement stronger management controls; utilise more rigorous credit standards; improve product pricing; roll out new compliance protocols; and improve IT systems. These changes are designed to deliver improved customer outcomes and support NSF's ambition of creating value for the Company's shareholders.

The Company announced on 7 July 2015 that it had entered into an agreement to acquire the Home Credit Division of S&U plc ("S&U") which trades as Loansathome4u for an enterprise value of £82.5 million, payable in cash, subject to approval by S&U's shareholders and customary closing conditions. The acquisition completed on 4 August 2015 following approval by S&U's shareholders with the final consideration equalling £82.4 million after an adjustment for net assets at completion.

On 4 December 2015 the Company announced that it had entered into an agreement to acquire Everyday Loans, the branch-based unsecured lending and guaranteed loans business of Secure Trust Bank PLC, for an enterprise value of £235 million. Completion is expected to take place by the end of April 2016, following FCA change of control approval.

 

END

 

 

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