Non-Standard Finance PLC Corporate Analyst Meeting Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mark Thomas - Hardman & Co. - Analyst : Mark Thomas at Hardman. Just looking at the capacity, you have 10% more staff, 5% efficiency. Branches, 7% or 10%, and that's obviously a number of percentage points faster than the expected loan growth that was recently put out as a target. Is that because you're expecting more time on collections? Are you building in a buffer or what's that extra capacity relative to the loan growth? Steven White;CEO ¡ Everyday Loans Part of the capacity is we need more people to do the collections. The corridor's really important. I mean we haven't really built that for all 16 -- all 14 years, but I would -- you -- all you care about is coming to us since we've doubled in 4 years. Staying there is critical, but it's grown a lot. You need more staff through that collection. To stay on top of impairment, you've got to keep adding the staff. And we're having a conversation with PLC about new branches. So I need more heads to collect. They've got to sit somewhere; forget a branch, I need desk space. So a number of those are to stay on top of the book. So it doesn't directly translate 10% more staff, therefore, 10% more loans. Peter is going to have a coronary. It's not 10% more staff, 10% more loans, it's to make sure that impairment, which has been rock-solid for 4 years, stays rock-solid as we continue to grow. Are we good with Q&A? Please do -- as John and Francesca are here, please do call them. I've done the talking, but they would also love to take your questions.

Question: Mark Thomas - Hardman & Co. - Analyst : Mark Thomas at Hardman. Sorry if I missed it, but what percentage of the guarantors are prime? Mark Burgess;CEO ¡ Guarantor Loans We don't split them out that way, just -- there is a range. And as I say, depends how we define prime. And again, I don't think there's a rule for that either. And the point I was trying to make is that, I think -- particularly when I first came into this guarantor business, I had the perception that all the guarantors would be prime and they certainly aren't. They have a better profile than the person that they are guaranteeing, but there are some in there exactly what they are. I don't know. Yes, we do split them out in terms of credit score, but it's not -- I -- there is no definition of prime. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

Question: Mark Thomas - Hardman & Co. - Analyst : Okay. And just -- I appreciate you reacted very quickly to it. But can you give some more color on the operational disruption at the end of last year? And what was missed in advance then you had to respond to? Mark Burgess;CEO ¡ Guarantor Loans Okay. I -- Steven, can I put that one to you in terms of last -- so are you talking the end of 2018 or... Steven White;CEO ¡ Everyday Loans '19.

Question: Mark Thomas - Hardman & Co. - Analyst : Mark Thomas. Another one for Jono, I'm afraid. I mean obviously, you're not going to give us a number as to what the meaningful reduction in finance cost is.

Question: Mark Thomas - Hardman & Co. - Analyst : Could you give us an indication? You talked about the opportunity to repay finance. Why would you not repay as much as possible as soon as you received the securitization proceeds? So can you give us some color about the execution side of it?