Trading update
18 August 2009
MCB Finance Group plc (AIM: MCRB.L) (the “Company” or “MCB”), the consumer finance company providing flexible credit solutions to retail customers in Finland, Estonia, Latvia and Lithuania provides a trading update ahead of the publication of its interim results for the six months ended 30 June 2009.
As noted in the trading update on 22 May 2009, Finland and the Baltic states had experienced a significant deterioration in economic conditions. This resulted in MCB's collection performance being below expected levels. As a consequence, and in connection with the preparation of the interim results, the Board believes it is prudent to increase the provisioning levels on the loans in arrears on the balance sheet at 30 June 2009. As a result of these increases in provisions, the Company expects to record a loss when it announces its results for the six months to 30 June 2009.
MCB has aggressively responded to the worsened economic conditions by continuing to tighten credit criteria, re-focusing lending to its highest quality customers and improving credit monitoring and collection processes. Whilst it is still relatively early in the process, the Company is encouraged that these actions appear to be working, with repayment rates having stabilized over the last couple of months. Were this trend to continue, we would expect improved results for the second half of the year.
The Company will provide more information in its interim results, expected to be announced the first week of September 2009.
Further information:
| MCB Finance Group plc: | |
| Rami Ryhänen, Chief Executive rami@mcbfinance.com |
+372 5300 8332 |
| Henry Nilert, CFO henry@mcbfinance.com |
+358 451 370 065 www.mcbfinance.com |
| Media enquiries: | |
| Allerton Communications: | |
| Peter Curtain | +44 20 3137 2500 |
| Nominated adviser and broker: | |
| Fox-Pitt, Kelton: | |
| Marc Milmo Jonny Franklin-Adams |
+44 20 7663 6000 |