Morses Club : Scheme of Arrangement – Outcome of Scheme Meeting

19 May 2023

Morses Club Limited

Scheme of Arrangement - Outcome of Scheme Meeting

Morses Club Limited (the "Company"), an established provider of non-standard credit services, provides an update on the progress of the Scheme of Arrangement (the "Scheme"). At a meeting of the Scheme Creditors (the "Scheme Meeting") held on 18 May 2023, the attendees had the opportunity to discuss and vote on the Scheme.

The outcome of this meeting determined that the majority of Scheme Creditors voted in favour of the Scheme (that is more than 50% in number), representing 75% or more in value. The Company will ask the Court to sanction the Scheme at a second Court hearing, which is anticipated to take place on 26 May 2023.

Following the Court sanction hearing, the Company will contact creditors to advise them of the outcome. The Explanatory Statement and other relevant documents are available on the Scheme website www.morsesclubscheme.com.

For further information please contact:
Morses Club	Tel: [phone]
Gary Marshall, Chief Executive Officer
Graeme Campbell, Chief Financial Officer
Camarco
Jennifer Renwick / Charles Dingwall	Tel: [phone]
Notes to Editors
About Morses Club

Morses Club is an established provider of non-standard financial services in the UK. The Group consists of Morses Club, the UK's largest home collected credit ("HCC") provider1, and Shelby Finance Limited, Morses Club's Digital division, which operates under the online brand Dot Dot Loans, an online lending provider. The Group's growing Digital capabilities and scalable, highly invested IT platform has enabled Morses Club to deliver a broad range of lending products and services to the non-standard credit market.

UK HCC is considered to be a specialised segment of the broader UK non-standard credit market. UK HCC loans are typically small, unsecured cash loans delivered directly to customers' homes.

Morses Club's HCC division is the largest UK Home Collected Credit (HCC) lender1 with 116,000 customers throughout the UK. The HCC division enjoys consistently high customer satisfaction scores of 95%2. In 2019 the Company introduced an online customer portal for its HCC customers, which now has over 95,000 registered customers which is 82% of HCC customers.

The Group's Digital division, Shelby Finance, operates under the online brand Dot Dot Loans providing online instalment loans of up to 48 months to c. 25,000 active customers.

1

About the UK non-standard credit market

The UK non-standard credit market, of which UK HCC is a subset, consists of both secured and unsecured lending and is estimated to comprise around 10 million consumers3 and total loan receivables of £9.6bn4.

Non-standard credit is the provision of secured and unsecured credit to consumers other than through mainstream lenders. Lenders providing non-standard credit principally lend on an unsecured basis and the market is characterised by high frequency borrowing. Approximately 2 million people move annually between standard and non-standard markets 4.

Since February 2014, unsecured personal lending has grown from £161 billion to £225 billion in February 2020. It has since contracted to £197 billion in August 20215.

1 Based on Net Loan Book of £45.3m as at 28 August 2021

2 Independent Customer Satisfaction Survey conducted by Mustard

3 FCA High Cost Credit Review Technical Annex 1: CRA data analysis of UK personal debt - July 2017

4 Apex Insight - Non-Prime Consumer Credit: UK Market Insight Report - December 2020 5 Table A5.2, Bank of England Money and Credit Bank stats August 2021

2