New Contract Accelerates Expansion of Hertford's UK Cheque-Cashing Network

 
TIDMHIG 
 
New Contract Accelerates Expansion of Hertford's UK Cheque-Cashing 
                               Network 
 
Key Points: 
 
*          Contract with Money Transfer International Limited ("MTI") 
  to expand  Hertford's existing third-party cheque-cashing network 
  by up to 25% 
 
*          Cheque Exchange Limited ("CEL") to initially provide 
  cheque-cashing services throughout circa twenty pre-selected UK 
  locations 
 
Hertford International Group Plc (AIM: HIG), a provider of personal 
financial products and services, is pleased to announce it has 
entered into a contract with Money Transfer International Limited 
("MTI") to offer Hertford's third-party cheque-cashing services in 
the United Kingdom across their retail network, with the potential to 
expand  Hertford's existing cheque-cashing network by up to 25%. 
 
This contract is for a minimum period of three years and then subject 
to twelve months notice, and will see Hertford's wholly owned 
subsidiary, Cheque Exchange Limited ("CEL"), provide cheque cashing 
initially through around twenty pre-selected locations scheduled to 
commence during the next few weeks, with an ongoing roll-out across 
MTI's two hundred plus agents, targeting ten retail outlets per month 
thereafter until December 2010. 
 
Since Hertford's acquisition of Cheque Exchange earlier this year, 
organic growth has led to a near 15% increase in the network size, 
and with the commencement of the new partnership with MTI the Company 
now expects the total expansion of the network to be close to 50% by 
year end. This is a strong step towards Hertford's strategy of rapid 
network expansion through B2B initiatives. 
 
Third-party cheque-cashing will also be part of MTI's offering as it 
continues adding new locations to its MoneyGram® network, enabling 
MTI to further differentiate itself from other money transfer 
super-agents when looking to secure new locations. 
 
CEL will provide all of the relevant support functions from its 
centralised processing centre in Dewsbury, Yorkshire. 
 
Around one million people  in the UK  use third-party cheque  cashing 
outlets each year,  cashing a  total of over  three million  cheques. 
 CEL currently  processes  approximately  150,000  cheques  annually, 
giving Hertford just over four per cent market share in the UK.   The 
new  agreement  targets  a  large  and  established  retail  network, 
providing Hertford with the opportunity to significantly increase its 
market share. 
 
Lewis Findlay, Chief Executive of Hertford, commented; "This contract 
provides Hertford with the opportunity to build on its acquisition of 
CEL completed in January of this year, by leveraging the expertise 
gained from over fifteen years delivering our third-party  cheque 
cashing service.  Our stated ambition was to significantly increase 
our share of the UK cheque cashing market, and now we can look 
forward to working closely with MTI, who themselves also have strong 
proven credentials as a provider of financial services." 
 
James Nicholson, Chief Executive of MTI, commented; "We are delighted 
to be  working with  Hertford, and  believe that  they are  an  ideal 
partner for  the  provision  of cheque-cashing  services  across  our 
network.  This  is  a  natural  product  to  complement  our  current 
offering, which I am sure will prove mutually beneficial to both  our 
companies, and we look forward to growing this relationship over  the 
coming years" 
Money Transfer  International  (UK)  Limited  ("MTI")  is  a  limited 
company that is an authorized super-agent of MoneyGram® in the UK and 
the  Republic   of  Ireland,   offering   through  its   network   of 
Sub-representatives across  the  UK  and  Ireland,  MoneyGram®  money 
remittance services. 
                               -Ends- 
For further information please visit www.higplc.com or contact: 
Hertford International Group Plc 
Paul Marks - Non-Executive Chairman 
                                    Tel: [phone] 
Lewis Findlay - Chief Executive 
 
Arbuthnot Securities 
Katie 
Shelton 
                         Tel: [phone] 
Nick 
Tulloch 
 
Bishopsgate Communications 
                                    Tel: [phone] 
Maxine Barnes 
Robyn Samuelson 
 
 
 
Notes to Editors: 
Hertford was  admitted to  the AIM  market in  December 2007  with  a 
strategy to provide financial services to primarily those people  who 
are not able to access a traditional bank account (the "unbanked"). 
Hertford owns 100 per cent. of CrewCard Network ("CCN"), a marketer 
of prepaid debit card programmes targeted at a number of high growth 
niche markets, including those people without a bank account. 
CCN's business  model is  to  develop several  complementary  brands, 
develop  its  own   distribution  network,  and   build  an   ongoing 
relationship with  its  card users,  which  will enable  it  to  sell 
additional products and services. 
As part  of  this strategy,  Hertford  completed the  acquisition  of 
Cheque Exchange  Limited  ("CEL")  from Provident  Financial  Plc  in 
January 2009.  CEL  is  the  super  agent  for  MoneyGram  and  is  a 
profitable  cheque  cashing  and  money  remittance  business.   This 
acquisition  provided  Hertford   with  an  established   operational 
infrastructure, a sales  force, and  positive cash-flow  on which  to 
grow the business and fulfil the vision of Hertford. 
 
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