Atypical financial services provider Morse Club updated investors on recent events on Friday, reporting that after an ongoing review of proposals to reorganize its business and corporate structure to introduce a new holding company, U Money, it had decided not to continue the process.
The AIM-listed company said that as a result, it had withdrawn further activity to implement the members’ plan of arrangement announced on August 13.
Morses Club and Shelby Finance would continue to operate as separate divisions, and the decision would have “no direct impact” on customers or the group’s operating structure.
“The decision was taken after it became apparent that there was no certainty that the work required to complete the process could be completed within the remaining timeframe which had already been extended from the original date of 12 October,” the council said in its statement.
“Based on this, the Board of Directors has determined that it is no longer possible to meet the December 31 deadline.”
Further financing arrangements for the group had now been confirmed through March 31, 2023, and business was trading in line with expectations, with customer demand still “strong” for credit products across both business divisions.
At 2.50pm GMT, Morses Club shares were down 2.11% to 55.8p.