Non-Standard Finance hails ‘robust’ collections amid pandemic
in a trading update on Thursday said its collection performance has been ‘robust’ amid the challenging circumstances of the Covid-19 pandemic.
NSF said collections at its branch-based Everyday Loans business and its Guarantor Loans Division, both now remote-working models, were running at above 90% and just below 90%, respectively, compared to pre-lockdown levels recorded in March.
The group also launched a remote lending solution for its home credit business, ‘Loans at Home’, a division which usually conducts its business face-to-face.
It noted that the series of new remote payment options has meant that collections for the division are currently running at around 75% of the expected level.
As a result of the focus on collections and efforts to preserve cash, the group reported it was cash flow positive in April, generating £3m of net cash in the first three weeks.
Shares in Non-Standard Finance were trading 34.93% higher at 12.9p this morning.
As at 21 April 2020 NSF had net cash of £38.7m and gross borrowings of £345.0m and added that it has access to additional borrowing facilities totalling £185m to fund future loan book growth.
The group said lending volumes had been limited to smaller sized loans to key workers only over the past four weeks.
It also added that whilst it remains cautious about lending to new customers, the group is currently developing new scorecards and procedures for all three businesses.
2019 full year results are now expected to be announced in mid-May 2020 after the group chose the additional two months option as advised in March by the FCA, FRC and PRA.
NSF said a final date will be confirmed soon and that the group continues to expect ‘normalised results’ for the year ended 31 December 2019 to be in line with expectations.
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