15th Jul 2020 14:52
(Alliance News) - Non-Standard Finance PLC on Wednesday said it is "encouraged" by its performance over the past two months amid "strong" application volumes.
The lender said overall basic collections in June were at 89% of the average level in January and February, with a particularly strong performance in home credit.
The company said it generated net cash of GBP11.9 million in the month and so had cash balances of GBP72.2 million at the end of June.
Application volumes, meanwhile, have been "strong", the company said, and whilst Non-Standard Finance noted that it remains cautious on lending, it said it has been "encouraged" by the steady increase in lending volumes over the past two months.
Going forward, the company expects that the overall loan book will stabilise during the fourth quarter of 2020.
In addition, Non-Standard Finance said meetings with investors have been "encouraging" regarding a possible equity raise to both strengthen its balance sheet and enable the company to capitalise on any increase in demand for its services.
Non-Standard Finance shares were trading 2.3% higher in London on Wednesday at 4.40 pence each.
By Evelina Grecenko; [email protected]
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