30th Mar 2016 10:28
LONDON (Alliance News) - Non-Standard Finance PLC, the AIM-listed lender which has expanded into the subprime market through acquisitions, on Wednesday said the Everyday Loans business it agreed to acquire from Secure Trust Bank PLC increased the size of its loan book by 26% in 2015.
Non-Standard Finance, which expects to complete the acquisition of Everyday Loans in April for an enterprise value of GBP235 million, said the business's loan book amounted to GBP114 million as of December 31, up from GBP91 million on year earlier and from GBP102.5 million as of June 30.
Everyday Loans' adjusted operating profit increased to GBP17 million in 2015, compared with GBP15.5 million in 2014, Non-Standard Finance said.
"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 GBP20 million. We will measure future profit growth against this benchmark," Chairman John van Kuffeler told Non-Standard Finance's annual meeting of shareholders on Wednesday.
The update on Everyday Loans, which provides unsecured loans to UK consumers from a network of 36 branches, came as Non-Standard Finance said it is "confident" further loan book growth across its businesses in 2016.
"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," Van Kuffeler said.
Loansathome4u, the door-to-door lender acquired for an enterprise value of GBP82.5 million from S&U PLC in 2015, achieved "strong loan" growth in the first quarter of 2016, against the corresponding period the prior year, the chairman said, together with "slightly improved" collections quality.
The business is therefore trading "marginally ahead" of the group's plan, Van Kuffeler said.
Shares in Non-Standard Finance were down 1.4% at 71.00 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
NSF.L