The Morses club moved to the pre-tax loss for the financial year 2022 after the booking of the claim costs
By Kyle Morris
Morses Club PLC said on Thursday it had moved to a pre-tax loss for the 2022 financial year after recording one-time claims liability costs in its HCC business.
The non-standard financial services provider said that for the financial year ended February 26, it recorded a pre-tax loss of £42.9 million ($50.6 million) against a pre-tax profit of £456,000 a year earlier. The company recorded £44.4 million of one-off costs related to the recognition of repair claims liabilities in HCC.
Turnover for the period was £111.4 million compared to £100.2 million a year earlier.
Morses Club is working with stakeholders and the UK’s Financial Conduct Authority to agree a plan of arrangement to address complaints and suspend the processing of all new unaffordable loan applications from August 11. Without the break, the group could have suffered significant short-term losses. liquidity issues, threatening its going concern status, he said.
The company added that there remains significant uncertainty about future operating continuity.
A scheme of arrangement is a court-approved compromise agreement between a company and its shareholders or creditors.
The Board of Directors has not recommended a final dividend for the year.
Morses Club shares at 07:02 GMT were down 0.20 pence, or 3.5%, at 5.60 pence.
Email Kyle Morris at kyle.morris@dowjones.com
