Morses Club PLC Result of Court Meeting and General Meeting (1828L)

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RNS Number : 1828L

Morses Club PLC

08 September 2021

8 September 2021

Morses Club PLC

Result of Court Meeting and General Meeting

Morses Club PLC ("Morses Club"), an established provider of non-standard financial services, announced on 13 August 2021 proposals to introduce, by means of a members' scheme of arrangement under Part 26 of the Companies Act 2006 (the "Members' Scheme"), a new holding company for the group, U Money PLC ("U Money").

Two meetings of Morses Club were held today at Suite 2.01, One City West, Gelderd Road, Leeds, LS12 6NJ in connection with the Members' Scheme and other related matters. The first meeting was a meeting convened by an order of the Court made on 12 August 2021 to approve the Members' Scheme. The second meeting was a general meeting of the Company called to approve certain matters in relation to the Members' Scheme.

Morses Club today announces that the Members' Scheme was duly approved by shareholders by a requisite majority on a poll at the court convened meeting. The total number of votes cast for the Members' Scheme is set out in the table below:

 
            No. of shareholders   % of shareholders   No. of ordinary   % of ordinary   % of issued 
             voting                voting              shares voted      shares voted    ordinary 
                                                                                         shares 
 FOR        40                    90.91               100,174,151       99.94           74.96 
           --------------------  ------------------  ----------------  --------------  ------------ 
 AGAINST     4                     9.09                        57,431    0.06            0.04 
           --------------------  ------------------  ----------------  --------------  ------------ 
 

Morses Club also announces that the total number of votes cast for each resolution at the general meeting of the Company is as set out in the table below. Morses Club's issued share capital as at today is 133,632,790 and the number of votes per share is one.

 
 Resolution   FOR no.      % of    AGAINST no.   % of    Total votes   WITHHELD 
               of votes     vote    of votes      vote                  no. of 
                                                                        votes 
 1            98,328,905   99.94   58,820        0.06    98,396,003    8,278 
             -----------  ------  ------------  ------  ------------  --------- 
 2            98,343,905   99.96   43,820        0.04    98,396,003    8,278 
             -----------  ------  ------------  ------  ------------  --------- 
 

The Company updated at the meeting that the timeline may be subject to change, and further updates will be provided in due course.

Ends

For further information please contact:

 
 Morses Club PLC                                  Tel: +44 (0) 330 
  Paul Smith, Chief Executive Officer              045 0719 
  Graeme Campbell, Chief Financial Officer 
 Peel Hunt (Nomad)                                Tel: [phone] 
  Andrew Buchanan / James Britton / Rishi          8900 
  Shah / Duncan Littlejohns (Investment Banking 
  Division) 
 Camarco                                          Tel: [phone] 
  Jennifer Renwick / Jake Thomas                   4994 
 

Notes to Editors

About Morses Club

Morses Club is an established provider of non-standard financial services in the UK. The Group consists of Morses Club, the UK's second largest home collected credit ("HCC") provider, and Shelby Finance Limited, Morses Club's Digital division, which operates under two online brands, Dot Dot Loans, an online lending provider, and U Account, which offers online e-money current accounts. The Group's growing Digital capabilities and scalable, highly invested IT platform has enabled Morses Club to deliver an increasingly broad range of financial products and services to the non-standard credit market.

UK HCC is considered to be a specialised segment of the broader UK non-standard credit market. UK HCC loans are typically small, unsecured cash loans delivered directly to customers' homes. Repayments are collected in person during weekly follow-up visits to customers' homes.

Morses Club's HCC division is the second largest UK Home Collected Credit (HCC) lender with 151,000 customers throughout the UK. The majority of the Company's customers are repeat borrowers and the HCC division enjoys consistently high customer satisfaction scores of 98% (2) . In 2016, the Morses Club Card, a cashless lending product, was introduced and in 2019 the Company introduced an online customer portal for its HCC customers, which now has over 107,000 registered customers.

The Group's growing Digital division, Shelby Finance, operates under two online brands. Dot Dot Loans provides online instalment loans of up to 48 months to c. 23,000 active customers. U Account is a leading digital current account provider offering an alternative to traditional banking by providing a fully functional agency banking service. U Account currently has c. 6,000 customers.

Morses Club listed on AIM in May 2016.

About the UK non-standard credit market

The UK non-standard credit market, of which UK HCC is a subset, consists of both secured and unsecured lending and is estimated to comprise around 10 million consumers (3) and total loan receivables of GBP10.7bn (4) .

Non-standard credit is the provision of secured and unsecured credit to consumers other than through mainstream lenders. Lenders providing non-standard credit principally lend on an unsecured basis and the market is characterised by high frequency borrowing. Approximately 2 million people move annually between standard and non-standard markets (4) .

Since February 2014, unsecured personal lending has grown from GBP161 billion to GBP225 billion in February 2020. It has since contracted to GBP197 billion in March 2021(5) .

(1 High Cost Credit Review ANNEX 1 - July 2017 2 Independent Customer Satisfaction Survey conducted by Mustard 3 FCA High Cost Credit Review Technical Annex 1: CRA data analysis of UK personal debt - July 2017 4 Apex Insight - Non-Prime Consumer Credit: UK Market Insight Report - September 2019 5 Table A5.2, Bank of England Money and Credit Bank stats March 2021)

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September 08, 2021 13:07 ET (17:07 GMT)