NewDay BondCo plc – Group results for the nine months ended 30 September 2022

NewDay, a leading digital consumer credit business in the UK, has today released its financial results for the nine months ended 30 September 2022 and its quarterly report on the Group’s website.


  • Strong Underlying Profit before Tax up 24% to £152 million (Q3 2021 YTD: £122 million)
  • Continued strong cash generation of £126 million (Q3 2021 YTD: £142 million) available for growth and debt service
  • Gross Receivables up 21% to £3.7 billion (Q3 2021: £3.0 billion)
  • Acquired over 1 million new accounts in the first nine months (Q3 2021 YTD: 598k), driven by accounts onboarded through the supported application process with John Lewis and 437k new accounts in D2C (Q3 2021 YTD: 391k)
  • Customer spend increased 33% to £5.6 billion (Q3 2021 YTD: £4.2 billion); with no significant observable change in customer spend patterns
  • Underlying RAM of 12.8% (Q3 2021: 13.1%) marginally lower due to changing partnership mix in the Merchant business
  • Continued reduction in Cost:Income Ratio to 29.1% (Q3 2021 YTD: 32.1%)
  • Resilient and well hedged ABS funding structure with approximately £2.3 billion (Q3 2021: approximately £0.9 billion) of headroom to fund receivables growth with £6.0 billion (Q3 2021: £4.1 billion) in total commitments
  • Strong leverage position with a Net corporate Senior Secured Debt / adjusted EBITDA ratio of -0.1x (FY 2021: 0.4x) and increased interest cover of 8.8x (FY 2021: 7.6x)

Commercial update

  • Successful launch of partnership with John Lewis in August with over 550k legacy HSBC customers onboarded to the end of October as well as launching to new customers
  • Successful launch of partnership with The Hut Group via NewPay covering 9 brands

Commenting on performance for the period, John Hourican, CEO said: “NewDay has delivered another strong quarter in both profitability and cash generation, maintaining the positive performance and momentum that we reported earlier in the year. The business is well placed to navigate the volatile macroeconomic backdrop, and we continue to underwrite within our risk appetite and help our customers in borrowing and spending responsibly.

“We have seen two successful merchant partnership launches in the third quarter with John Lewis and The Hut Group. We have seen very positive take-up among John Lewis customers within the first month and look forward to serving this new, more prime, demographic within our Merchant portfolio.

“We are very conscious that we are heading into a more challenging macroeconomic environment with many people across the UK facing cost of living challenges. We have been deliberately slowing growth in our D2C business against this backdrop. While we have seen delinquencies trend upwards and an increase in customers on payment holidays, we continue to use our 20+ years of through-the-cycle experience to ensure that risk in our portfolio is well controlled, our customers are well supported and that we continue to deliver stability through the remainder of 2022.”