Author Lauren Howells

One of Britain’s biggest doorstep lenders, Morses Club, has reportedly expanded its number of door-to-door salespeople by “poaching hundreds of agents” from rival Provident Financial, according to an article in City A.M. published late last week.

The Chief Executive of Morses Club, Paul Smith, reportedly told City A.M. that their recently acquired agents were extremely happy to have left Provident.

According to the Telegraph, Morses Club has grown its door-to-door salesforce by nearly 600 people this year so far, which it says is six times more than usual.

Smith reportedly said that nearly 100% of the influx of agents has been “Provident people” and that the average length of experience of the agents was 8 years.

Provident Financial “crashed out” of FTSE 100 this summer

Provident Financial and Morses Club

© Copyright Phil Champion

In August this year, the Express reported that Provident Financial had “crashed out” of the FTSE 100, after its shares plunged in what was believed to be the “biggest one-day stock price fall for a

firm listed on the FTSE 100 index”, reportedly rooted in an allegedly “botched” attempt to reorganise its salesforce. Provident’s chief executive Peter Crook also stood down.

According to the Telegraph, Mr Crook had one of the FTSE’s “best-paid chief executive jobs”.

Morses Club reported “strong first-half performance”

Meanwhile, in its interim results for the 26 weeks ending on 26 August 2017, the Morses Club reported a strong first-half performance, with revenue up 14.8% to £54.2 million and a net loan book growth of 16% to £65.2 million.

Commenting on these results, Paul Smith, said:

“Our strong first half performance demonstrates the success of our credit policy and emphasis on high-quality lending, as well as our ability to capitalise on market opportunities to increase our customer base. In light of the change in market conditions, we have placed considerable emphasis on ensuring that growth is sustainable and we are focused on developing products in line with customer demand and supported by our excellent customer service offering”.

“We have made significant progress with our technology platform underpinning the business operationally, whilst retaining the people aspects of the business that our customers value so highly. We have delivered increased quality revenue and loan book growth, whilst keeping impairments within our target range, giving us confidence in the outlook for the full year.”

Morses Club also reported a 12.6% increase in customer numbers to 233,000 during this period.

Smith reportedly said growth during summer months was highly unusual

According to the Telegraph, Smith said that growth during the summer months was highly unusual and he had not experienced summer growth like it before.

However, the Telegraph reported that Smith said he believed that Provident would be able to “pull the whole thing back together”.