Trading update
16 May 2011
MCB Finance Group plc (AIM: MCRB.L) ("MCB" or the "Group"), the consumer finance company providing flexible credit solutions to retail customers in Finland, Estonia, Latvia and Lithuania announces that, based on trading in the first four months of the financial year, it expects the Group's profit before tax for the current year ending 31 December 2011 to be above current market expectations.
In our full-year results announcement on 14 March 2011, we stated that we expected the growth that we had seen in the second half of 2010 to translate into higher revenues in 2011, resulting in stronger profitability.
This trend has continued, and lending in the first four months of 2011 was ahead of our expectations with principal lent approximately 45 per cent. above the volumes seen during the same period last year. At the same time costs have been broadly in line with our expectations, and credit performance from current lending has remained strong.
In addition, collections from aged accounts written off have exceeded our projections, leading to higher than expected write-backs, which will also benefit net income. We expect this trend to continue throughout the year.
As a result, whilst it is early in the current financial year, should this trend continue, we would expect full year results to be significantly ahead of market expectations.
Further information:
| MCB Finance Group plc: | www.mcbfinance.com |
| Rami Ryhänen rami@mcbfinance.com |
+372 5300 8332 |
| Henry Nilert, Chief Financial Officer henry@mcbfinance.com |
+358 451 370 065 |
Media enquiries:
| Allerton Communications: | |
| Peter Curtain peter.curtain@allertoncomms.co.uk |
+44 20 3137 2500 |
Nominated adviser and broker:
| Merchant Securities Limited: | |
| Lindsay Mair / Virginia Bull | +44 20 7628 2200 |