NewDay – Group results for the six months ended 30 June 2022

NewDay, a leading digital consumer credit business in the UK, has today released its financial results for the six months ended 30 June 2022 and has published its interim report for the period on the Group’s website


  • Record Underlying Profit before Tax up 28% to £97 million (H1 2021: £76 million)
  • Strong cash generation and profitability demonstrating resilience in current challenging macro-economic environment
  • Acquired 427k new accounts (H1 2021: 401k) despite tighter account origination criteria
  • 38% increase in total customer spend to £3.6 billion (H1 2021: £2.6 billion); no discernible change in customer spend patterns as a result of current macro-economic climate since beginning of the year
  • Strong growth in Gross Receivables up 21% to £3.5 billion (H1 2021: £2.9 billion),significantly above market growth of 10%
  • Strong Underlying RAM of 12.6% (H1 2021: 12.9%)
  • Continued reduction in Cost:Income Ratio to 28.9% (H1 2021: 32.6%) with per-unit servicing costs continuing to fall. Inflationary impacts on cost base well controlled together with ongoing efficiency gains
  • £78m of cash generated before growth and debt service (H1 2020: £98m) reflecting more normalised working capital levels
  • Resilient funding structure with over £2.1 billion (H1 2021: c.£1.0 billion) of headroom to fund receivables growth with £5.6bn (H1 2021: £4.2 billion) in total commitments

Commercial update

  • Merchant partnership with John Lewis expected to commence imminently in August2022 with legacy HSBC customers offered a 0%, 6-month balance transfer to NewDay
  • Following notice given in January 2022 to Amazon to terminate partnership, new account acquisition ceased in June with migration of legacy Amazon customers to Pulse to commence in Q4 2022. Contract will be formally terminated in January 2023
  • Signed white-label NewPay partnership with fast-growing online retailer, expected to commence in H1 2023
  • Signed NewPay branded partnership with The Hut Group expected to commence inQ3 2022
  • Origination of unsecured personal loans on behalf of Antelope Loans, expected to commence in Q3 2022, generating additional capital-light fee income

Commenting on performance for the period, John Hourican, CEO said: “NewDay has maintained strong momentum in the first half of this year and continues to deliver record profitability and sustainable growth. These results are evidence of NewDay’s resilience and its ability to navigate difficult market environments. Our data-intensive underwriting models mean we continually assess affordability implications for our customers, in line with our focus on responsible lending.

“We have seen good progress in our Merchant Offering business line, as retailers continue to partner with NewDay for our differentiated technology and products as well as high service levels. We will shortly commence issuing cards to new and existing John Lewis customers as part of our new long-term partnership with them.

“We look forward to continuing to make progress in H2, harnessing our strong momentum to execute against our strategy.”