Non-Standard Finance (NSF); provides an update on FY 2019 trading

Published on 16-01-2020 08:48:17
Author Sparks Team
Standard Life UK Small.Co's Tst (SLS); posts NAV total return at -19.5% for H119

Non-Standard Finance announced that trading in the final few months of 2019 was as anticipated. The group’s medium-term targets for loan book growth and impairment as a percentage of revenue are unchanged. The group had cash at bank of £14.2m and gross borrowings of £323.2m as of 31 December 2019.

In branch-based lending, Everyday Loans has continued to deliver an impressive performance. The net loan book before fair value adjustments reached £218.3m as of 31 December 2019. The company continues to believe that consumer demand for branch-based lending will support a network of over 100 branches in the medium term.

Having taken the decision to consolidate all the guarantor loans activities into a single location in October 2019, the net loan book increased by 29%, to £107.4m. The number of customers increased strongly by 30% to 32,600.

In home credit, Loans at Home’s performance was slightly better than expected during the peak lending period in November and December. While sales volumes to existing customers were lower than last year, new customer volumes remained strong with the total number of customers being broadly flat at 92,400 at end-2019. The company expects a period of relative stability in home credit and more normalised rates of loan book growth, in line with its medium-term targets.

The group is continuing to make good progress on finalising a new £150m-200m, six-year securitisation facility to help fund future loan book growth.

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