22nd Jan 2019 13:06
LONDON (Alliance News) - Non-Standard Finance PLC on Tuesday said it is set to meet market consensus for 2018 and is now producing a sustained growth in earnings.
Non-Standard Finance was established in 2014 to acquire and develop businesses in the non-standard finance sector of the UK. Its three business areas are guarantor loans, home-collected credit, and unsecured branch-based loans.
Within its branch-based area, Non-Standard Finance's Everyday Loans business produced "impressive growth", remaining the strongest contributor to the firm's overall performance.
As at December 31, the company's branch-based net loan book, before fair value adjustments, had grown 25% to GBP181.8 million from GBP145.6 million. This was attributed to new branches and higher productivity.
As at December 31, branch-based impairment stood at 21% of normalised revenue, within the company's 20% to 22% guidance range.
Within guarantor loans, the net loan book had risen to GBP77.4 million from GBP47.9 million and impairment of normalised revenue was 19.5%. This was better than guidance, which was also for between 20% and 22%.
Home credit had a more modest 2.1% net loan book increase to GBP41.0 million from GBP40.2 million. Impairment as a percentage of normalised revenue was 33%. This was at the bottom of Non-Standard Finance's guidance for between 33% and 37%.
The company raised it committed debt facilities to GBP330 million in September and on December 31 had GBP13.9 million in cash in the bank, rising from GBP11.0 million the year prior. Its gross borrowings totalled GBP272.8 million from GBP208.1 million.
Shares in Non-Standard Finance were down 1.6% at 59.80 pence on Tuesday.
Related Shares:
NSF.L