Pre-close trading update
28 December 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, today provides this pre-close trading update.
Since announcing its first half 2011 results in September, the Group's performance has remained strong, with further lending growth, continued attractive credit performance and improved profitability when compared to prior periods.
The Group has managed to grow lending volumes substantially in comparison to the first half of 2011. Principal lent in the second half of the year has been approximately 65 per cent. above the volumes seen during the same period last year. This is a result of further increased marketing visibility in all markets, resulting in a growing number of website visits by both new and returning customers, and attractive conversion rates.
MCB has maintained its cautious approach to credit, resulting in continued strong credit performance in all markets. Costs have remained in line with expectations.
During the period each of the markets in Finland, Estonia, Latvia and Lithuania have shown attractive development and are all strongly contributing to Group profitability. Economic conditions in all four markets have remained favourable, with GDP growth significantly above the EU average and further reductions in unemployment levels.
During the period the Group has further improved its range of credit products and services, and MCB continues to offer one of the widest, most flexible and accessible product offerings in its segment of the consumer credit market.
The Group is preparing to extend the business beyond currents markets in 2012, and is expecting to enter a new geographical market during the first half of 2012 as well as introduce new products and services during 2012.
The Group is expected to show revenue and net income levels for the 12 months to 31 December 2011 that are slightly above market expectations. The Board is positive about the outlook of the Group in 2012.
Further information:
| MCB Finance Group Plc: | www.mcbfinance.com |
| Rami Ryhänen, Chief Executive Officer | +372 5300 8332 |
| Henry Nilert, Chief Financial Officer | +358 451 370 065 |
| Nominated adviser and broker: | |
| Merchant Securities Limited: | |
| Lindsay Mair / Virginia Bull | +44 20 7628 2200 |
| Media enquiries: | |
| Allerton Communications: | |
| Peter Curtain peter.curtain@allertoncomms.co.uk |
+44 20 3137 2500 |
About MCB Finance Group Plc:
MCB Finance Group is a consumer finance company providing fast, convenient, easily understood and flexible credit solutions under the Credit24 brand to retail customers in Finland and the Baltic countries of Estonia, Latvia and Lithuania. In its markets, the Company is a leading participant in the non-standard segment of the consumer credit sector, providing unsecured loans of between €100 and €2,000 to qualifying customers, with maturities ranging from one month to two years. Loan products are designed to suit customers' needs, with simple and transparent terms and flexible repayment schedules.
Loans are offered online through the Company's Credit24-branded websites in Estonia, Finland, Lithuania and Latvia, as well as through certain distribution partners in the Baltic countries. The Company's proprietary technology platform facilitates rigorous processes for the extension, monitoring and collection of a large number of relatively small consumer credits at very low cost.