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EPIC: MCL
Market: AIM
52-week High/Low: 163.42p / 100.81p
Sector: Financial
Market Cap: 172.88M
Website: www.morsesclubplc.com Morses Club Plc
Morses Club Plc

Morses Club is a cash generative, UK consumer finance business. Our current business is the result of the successful combination in 2015 of two established brands in the Home Collected Credit ("HCC") market, Morses Club and Shopacheck Financial Services.

We have circa 200,000 customers, spread throughout mainland UK and Northern Ireland, and the second largest market share in the UK HCC market. We operate under an established brand, enjoy a loyal customer base and are building a market-leading UK non-standard consumer finance business.

Need to do more research with a view to buying a few long term, i believe hard to trade in view of wide spread. What has sparked my interest is an article by Ian Pierce Fool.co.uk 29/10/2017. Regarding Neil Woodford known for his ability to unearth often under-the- radar stocks paying out hefty dividends. He states;-


"Another Woodford income holding I like is Morses Club which currently pays out a 4.8% dividend. Some investors may have been scared away from the sector after the recent problems of market leader Provident Financial, but if anything, these problems have made Morses Club even more attractive.

That's because Provident's problems were entirely self-inflicted. It's push to bring self-employed agents in-house led to mass resignations. This was a boon for Morses Club as it hoovered up thousands of these agents, who have taken their customer books with them. In the half year to August, the company's territory builds leapt from 114 to 434 and it's customer numbers jumped 14% to 233,000.

These new customers helped increase the firms revenue for the period by 14% compared to the year prior. Now, pre-tax profits for the period only rose from £8.6m to £8.7m, but this is to be expected as the influx of new agents required substancial forward payments to help them build their books. Over the coming year, these investments should begin to turn into profitable growth for the group as a whole.

With its share priced at only 12 times forward earnings despite a bumper dividend and enviable growth prospects, I believe Morses Club could be a bargain pick at todays prices."



LATEST BROKER VIEWS

Date Broker New target Recomm.
31 Oct finnCap 175.00 Corporate
5 Oct Beaufort... 165.00 Buy
5 Oct Shore Capital N/A Buy
1 Sep Beaufort... 165.00 Buy
31 Aug Shore Capital N/A Buy
21 Aug Beaufort... 155.00 Buy
18 Aug Numis 138.00 Add
4 Jul Shore Capital N/A Hold
3 Jul Numis 138.00 Add
21 Jun Shore Capital N/A Hold

Apologies to Halifax if your looking in. Have emailed MAM hopefully be sorted Monday. If I had a brain would be dangerous :0)

Correct epic sorted, thanks MAM :0)

Interim divi payment tom 18th. Benefitting at the moment anyway from PFG woes.
Bought a few for my ISA, dyor penny stock risky. Report in April, difficult to trade wide spread but going in the right direction.

LATEST BROKER VIEWS
Date Broker New target Recomm.
14 Feb Peel Hunt 165.00 Buy

Missed this on 1st March.

Released : 01 Mar 2018 07:00
RNS Number : 2979G
Morses Club PLC
01 March 2018
1 March 2018
Morses Club PLC
Trading update and notice of preliminary results
Morses Club PLC ("the Company"), the UK's second largest home collected credit lender, provides the following trading
update for the 52‐week period to 24 February 2018.
Trading performance for the period has been strong and is in line with the Board's expectations.
Total credit issued was up 21% to £174.3m compared to the prior year (FY 2017: £144.1m) with a strong increase in the
Company's gross loan book which is up over 12% compared to 25 February 2017.
Total customer numbers increased by 6% to c.229,000 as at 24 February 2018 (FY 2017: c.216,000) and the proportion of loans
attributable to the highest tier customers increased by 18% against last year, reflecting the continued improvement in the
quality of the loan book (FY 2017: 10% increase against previous year). This is a result of our investment in territory builds,
which have generated leads from higher quality customers.
As highlighted in our half year results, notwithstanding the significant growth in total credit issued, we expect to report
impairments at the upper end of our guidance range, demonstrating the quality of our customers.
Growth in the Morses Club Card, the first cashless lending product for Morses Club customers, has continued, with over
21,000 customers and over £10.6m of loan balances now on cards (FY 2017: 10,200 customers and £3.9m of loan balances).
The Company launched its first online instalment loans product, Dot Dot Loans, in March 2017 in an extended customer test
phase. This is another step in the Company's strategy of developing digital products to build upon its core offering and
provide affordable credit to a wider range of customers across the UK non‐standard credit market and we look forward to
updating the market further at the time of our results.
Paul Smith, Chief Executive Officer of Morses Club, said:
"We are pleased with the strong growth we have achieved over the year as we continue to build our customer base and
develop new products tailored to meet the needs of our customers, whilst maintaining a clear focus on high quality growth in
our core HCC loan book. The success of the Morses Club Card and development of our Dot Dot online loans product highlight
the market opportunity for new, flexible products to complement our core HCC product.
"Customer relationships and experiences are paramount, and we remain committed to ensuring that our customer needs are
balanced with advances in technology to keep our service ethos at the forefront of our market and continue to record
consistent customer satisfaction of 95% or more.
"We continue to remain confident in our outlook, with further opportunities for growth both within the HCC and the wider
non‐standard finance markets."
Notice of Preliminary Results
Morses Club will be announcing its preliminary results for the 12‐month period ended 24 February 2018 on 26 April 2018.
There will be an analyst presentation to discuss the results at 9:30am at Panmure Gordon, 1 New Change, London EC4M
9AF. Those analysts wishing to attend are asked to contact Mercedes Goldman at Camarco on +44 (0)20 3757 4996 or at

LATEST BROKER VIEWS
Date Broker New target Recomm.
1 Mar Peel Hunt 165.00 Buy
1 Mar finnCap 175.00 Corporate
14 Feb Peel Hunt 165.00 Buy
31 Jan Shore Capital N/A Buy
31 Jan finnCap 175.00 Corporate
5 Dec Shore Capital N/A Buy
31 Oct finnCap 175.00 Corporate
5 Oct Beaufort... 165.00 Buy
5 Oct Shore Capital N/A Buy
1 Sep Beaufort... 165.00 Buy

Morses Club PLC
Preliminary results for the 52 weeks ended 24 February 2018
Morses Club PLC (“the Company”, “Morses Club” or “the Group”), the UK’s second largest home collected
credit (“HCC”) lender, is pleased to announce its preliminary results for the 52 weeks ended 24 February
2018.
Financial Highlights
• Continued strong performance with revenue up 17.1% to £116.6m (FY17: £99.6m)
• Adjusted profit before tax increased by 8.5% to £19.2m (FY17: £17.7m); reported profit before tax
increased by 44.6% to £16.2m (FY17: £11.2m)
• Total credit issued increased by 21% to £174.4m (FY17: £144.1m), driven primarily by new territory
builds
• Net loan book growth of 19% to £72.8m (FY17: £61.2m)
• Impairment as a percentage of revenue for the period was 26.1% (FY17: 24.4%), remaining within
our target range
• A 6% increase in customer numbers to 229,000 (FY17: 216,000)
• Secured additional funding in August 2017 to increase overall revolving facility from £25m to £40m
• Adjusted EPS increased by 8% to 11.7p (FY17: 10.8p); Basic EPS increased by 53% to 10.1p (FY17:
6.6p)
• Proposed final dividend of 4.8p (FY17: 4.3p)
Operational Highlights
• Recruitment of c. 600 agents and managers during the year, which translated into 463 territory
builds in FY18
• 21,000 Morses Club Card customers, with £10.6m in loan balances (FY17: £3.9m)
• Technology continues to enhance Morses Club’s offering, improving customer experience, driving
efficiencies and productivity gains and supporting diversification into complementary product areas
• Received full Financial Conduct Authority ("FCA") authorisation
Alternative Performance Measures & Key performance indicators
52-week
period
ended 24
February
2018
52-week
period
ended 25
February
2017
% change
Revenue £116.6m £99.6m 17.1%
Net Loan Book £72.8m £61.2m 19.0%
Adjusted Profit before tax¹ £19.2m £17.7m 8.5%
Reported profit before tax £16.1m £11.2m 43.8%
Adjusted PBT underlying HCC¹ £24.4m £18.9m 29.1%
Adjusted earnings per share¹ 11.7p 10.8p 8.3%
2
Basic earnings per share 10.1p 6.6p 53.0%
Proposed Dividend per share 7.0p 6.4p 9.4%
Cost / income ratio 56.3% 56.9%
Return on assets¹ 22.9% 24.1%
Return on equity¹ 26.5% 27.2%
Tangible equity / average
receivables ratio 92.6% 93.5%
Number of customers ('000) 229 216 6.0%
Number of agents 2,030 1,826 11.2%
Credit Issued £174.4m £144.1m 21.0%
Impairment (% of revenue) 26.1% 24.4%

Still breaking out nicely. Got to think will retrace to go higher, lower indicators overbought. Long term hold in ISA.

That's a great trade Chris. PFG continues to fall so I assume MCL are making further significant inroads.

Thanks CC