Morses Club (MCL)

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The UK’s second largest home collected credit (“HCC”) lender.

5-Oct-2017

Interim Results For The 26 Weeks Ended 26 August 2017 – Revenue up 14.8% to £54.2m (£47.2m last time), Net loan book growth of 16.0% to £65.2m (£56.2m last time) and a 12.6% increase in customer numbers to 233,000. Adjusted PBT is only slightly up from £8.6m to £8.7m and the interim Dividend is up just 0.1p, from 2.1p to 2.2p.

A so-so update for me which seems to disappoint. The Adjusted PBT and interim Dividend increase don’t seem to support even a low PER of 11.7.

1-Mar-2018 – 136.65p – £177.0m – PER 10.1

Trading Update For The 12 Months To 24 February 2018 – Strong and in-line with the Board’s expectations.

Looks OK to me – An SP of around 100p and an improvement in that Operating Margin would make it more interesting. Will keep an eye out for updates.

30-Aug-2018 – 150p – £199.1m – PER 10.8

Trading Update For The 26 Weeks To 25th August 2018 – Trading in-line and confident for the rest of the year.

Although reasonably attractive on a PER of 10 and a yield of 5% or so I remain Neutral here (have a feeling this sector is perhaps due even more regulation).

4-Oct-2018 – 141.5p – £183.2m – PER 9.83

Interim Results For The 26 Weekes To 25th August 2018 – Switch to IFRS so a little tricky here – LFL Revenue up 11.9%, Adjusted PBT up 20.6%, Adjusted EPS up 20% or so with the Interim Dividend up 18.2%. Trading in-line, confident for FY.

Still quite like this but still can’t help but feel even more regulation might be thrown in this direction. Although this if/maybe/possibly is close to being outweighed by the growth here and the yield. Still Neutral, just.

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