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Sub-prime lender Morses Club first-half profit falls 76%

LONDON, Dec 18 (Reuters) - Morses Club’s first-half profit fell 76% to 2.3 million pounds ($3.12 million), it said on Friday, with the British sub-prime lender hit by the impact of COVID-19.

First-half revenues also dropped by 24% to 50 million pounds, Morses Club said in a statement.

The lender said it started remote lending to existing HCC - home collected credit - customers three weeks after Britain’s first lockdown in March.

It introduced remote HCC products for new customers in July.

“Credit issued and collections in the HCC division were inevitably impacted by the loss of face-to-face interaction, but customers responded very positively to our remote HCC lending product,” CEO Paul Smith said.

The lender, whose stock has fallen 68% this year, said it would pay an interim dividend of one penny per share. ($1 = 0.7380 pounds) (Reporting by Carolyn Cohn Editing by Rachel Armstrong)

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