Morses Club Dividends - MCL

Morses Club Dividends - MCL

Buy
Sell
Best deals to access real time data!
Silver
Monthly Subscription
for only
£17.37
Level 2 Basic
Monthly Subscription
for only
£62.08
UK/US Silver
Monthly Subscription
for only
£30.59
VAT not included
Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Morses Club Plc MCL London Ordinary Share GB00BZ6C4F71 ORD GBP0.01
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 93.00 09:34:06
Open Price Low Price High Price Close Price Previous Close
93.00 93.00 93.00 93.00
more quote information »
Industry Sector
GENERAL FINANCIAL

Morses Club MCL Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
18/12/2020InterimGBX129/02/202029/08/202011/03/202112/03/202109/04/20210
27/11/2020FinalGBX101/03/201929/02/202014/01/202115/01/202112/02/20213.6
10/10/2019InterimGBX2.603/03/201931/08/201924/12/201927/12/201917/01/20200
02/05/2019FinalGBX5.223/02/201823/02/201927/06/201928/06/201926/07/20197.8
04/10/2018InterimGBX2.625/02/201825/08/201827/12/201828/12/201819/01/20190
26/04/2018FinalGBX4.824/02/201724/02/201828/06/201829/06/201827/07/20187
05/10/2017InterimGBX2.226/02/201726/08/201728/12/201729/12/201719/01/20180
27/04/2017FinalGBX4.325/02/201625/02/201722/06/201723/06/201721/07/20176.4
06/10/2016InterimGBX2.127/02/201627/08/201620/10/201621/10/201618/11/20160

Top Dividend Posts

DateSubject
13/5/2021
07:41
opaldouglas: Bloody brilliant set of results given the Covid environment, but most importantly some really good forward guidance. Customer satisfaction first and foremost has increased and impairment is down to a record low! As always, MCL focus on quality over quantity and their loan book/assets almost match the current market cap! Outlook clearly guarded regarding h1 which is understandable with recent Covid lockdowns, whilst the outlook is clearly positive with HCC continuing to do the heavy lifting whilst digital commentary is really pleasing and perhaps the most positive since takeover, brilliant stuff. It's pleasing to see acknowledgment of claim management companies and MCL are compliant in investigating all claims (I refer back to my previous commentary which surmises even a tenfold increase in successful claims wouldn't materially affect profitability!). Great to see confirmation of reduced competition and MCL are really leading the pack as they are way ahead of competition in going digital with reduced office space, but perhaps more importantly the digitalisation of the business. Covid has forced their hand and the business has jumped forward at least 5 years in the last 12 months, it's a fabulous place to be. As always I'm clearly bullish and stick by my £1.50 share price target as a minimum. My longer term narrative including inflation and tough times ahead is more prevalent than ever which really opens up all sorts of opportunities for MCL. Best of luck to everyone. OD
05/5/2021
21:21
scubadiverr: I see stockopedia now has upgraded MCL to a stockrank of 90. Quality 85, Value 96 and Momentum 42. I suspect with the previous CFO buy that momentum will improve after results. In which case we should become a superstock! They have the forward PE at 8.8, PEG 0.2, EPS growth at 66.5% and dividend yield at 6%. I'm quite happy to receive a 6% yield while waiting for a significant rerate.
29/3/2021
06:16
opaldouglas: Hi all, certainly lots of discussion regarding the merits of different companies. In my view it’s good to look at the sector as a whole but the outlook for MCL is only getting better as we push on with the the Covid recovery and reopening of the wider economy. The lower the price drifts the better the risk vs reward in my view. The real bone of contention seems to be increased impairment figures due to complaints? MCL reported on this and did advise within last years accounts: “Principal Risks and Uncertainties R6 Wider Industry Risk Concerted action by Claims Management Companies (CMCs) can lead to a significant increase in the level of complaints being raised against the Group, whether they are ultimately settled or rejected. A change of approach by the Financial Ombudsman (FOS) resulting in more complaints being upheld without good reason. The increased cost of each FOS claim, whether the complaint is upheld or not. During the year, the Group has seen a noticeable increase in the level of complaints received from CMCs. In many cases, these have been spurious or allegedly sent by individuals who have never been customers or have been sent without the customer’s knowledge or consent. CMCs are now regulated by the FCA and it is hoped that they will act more responsibly in the future. The Group is actively engaging with FOS and the FCA through the sector trade associations. Following the ending of PPI claims, it is clear that CMCs are looking for opportunities to challenge companies” For the sake of ease, I’ll just reiterate my previous comments: 652 upheld complaints in 2020 for MCL, avg HCC loan of £327 @70% interest equals £229. So £149,242.80 extra impairment for 2020. This is really a drop in the ocean and has already been covered by trading statement earlier this month ahead of expectations. Frankly, you could increase this figure 5 fold and it wouldn’t have a marginal effect on profitability. FOS FCA complaints data, it’s readily available online and includes both Morses Club and Provident. See link below: hxxps://www.financial-ombudsman.org.uk/data-insight/half-yearly-complaints-data Provident’s complaints have indeed been going through the roof recently, complaint are up from 3536 in 2020 h1 to 10387 in h2 of which 74/75% are upheld in the customers favour. Provident Complaint Numbers 2020 h2 10387 (upheld 75%) 2020 h1 3536 (upheld 74%) 2019 h2 1930 (upheld 59%) 2019 h1 1131 (upheld 47%) To put this into context Provident’s CCD division had circa 379,000 customers in h1 2020, that’s a complaint rate of 0.93%, this has now risen to circa 2.74% in h2 2020. Morses is really a different story in terms of numbers, complaints have indeed increased, but by a much smaller number. from 53 in h2 2019, to 224 in h1 2020 and finally 794 on 2020 h2. Whilst any increase is of course unwanted, Morses does have a lower upheld rate averaging 64%. See figures below: Morses Complaint Numbers 2020 h2 794 (upheld 63%) 2020 h1 224 (upheld 65%) 2019 h2 53 (upheld 66%) 2019 h1 below 30 To compare the two Morses HCC customer complaints ranges from 0.13% to 0.46% in 2020, Provident ranges from 0.93% to 2.74% in 2020 with a much larger customer base. Provident CCD customers numbers in h1 2020 was 379,000 vs Morses 170,000. This really reinforces my view that Morses does focus on quality over quantity and backs up Morses ethos and customer review data that they are always so keen to reference. Morses had 1018 customer complaints in the whole of 2020, at 64%, that’s 652 complaints upheld. It’s unlikely this will impact FY 2021 results due out 13th May as we’ve already had a beat on expectations from the Morses via latest trading statement. Certainly one for all investors to watch but in my view comparisons with Provident are unwarranted. Additionally a collapse in Provident CCD will only provide a larger customer base for Morses club, as long as they stick to a robust lending criteria. Looking at the recent TU it's really impressive. Based upon previous guidance I’d forecast HCC sales of £97M, so that’s a beat of £13M based upon £109.7. MCL have issued updated throughout 2020 which have been most helpful, I based the last six months on an estimated average 80% of 2020 HCC sales. This gives MCL £51.2M (h1) vs £58.5M in h2. HCC sales of 109.7M extrapolated from historic levels generates revenues of £76.8M, allowing for “normal” impairment charges reduces to £72.4M. Again, base upon historic averages this translates into a PBT of 12.3M. If MCL decide they were perhaps too hasty with initial Covid write down this could increase. Again, digital is the short term drag (long term growth!) with breakeven pushing out to Feb 22 this increases my previous forecast a touch to £5.3M losses, hence a near £7M PBT for MCL for last FY, due in May. What HCC sales do we foresee for the rest of this FY? Trading update would suggest an avg h2 run rate of of 9.75M, clearly this has been rising since h1 and would have peaked higher around the seasonal Christmas period. In this regard I’d rather not second guess too much and suggest MCL sales will revert back to pre covid levels, perhaps next FY year ending Feb 2023 (Paul Smith did suggest MCL were 12 months away from HCC pre covid levels last Autumn). The date is almost incidental in my investment horizon, if it’s this year, next or the one after I have a high degree of certainty sales will revert back as a minimum, this provides me with a good basis to forecast HCC sales will again match FY year ending Feb 20 with sales of 174M and PBT of 20.7M. Clearly a sensible PE should be used for what is not a particular racy company, I’d suggest 10, based upon a PBT of 20.7M, equating to circa £207 Mcap. This is triple current Mcap. Historically MCL was valued between 150p - 200p and with no dilution it’s reasonable in my view that this is achievable again. Re, Dot Digital. It’s been a long slog for MCL to merge this acquisition and clearly it’s been a drag on the share price. Although MCL have pushed back breakeven this is now due within 12 months and in my view this is the game changer for a substantially larger rerating. Dot digital provides a much larger target market 10-12M customers compared with 1.6M in the HCC market. MCL are clearly trying to cross sell products between HCC and Dot digital and are trying to take market share from high street banks and the wider credit market. Paul Smith has already been quoted last year stating that dot Digital will contribute the same amount of profits HCC has historically achieved pre covid within 3 years. This would equate to over £40M PBT for MCL. This would equate to a Mcap of £400M, that’s over 4 times todays Mcap. The above doesn’t account for MCLs loan book which is a net asset even allowing for any adverse impairments, including cash which I have penciled in at 46M end of this FY. For anyone who see inflation looming (I’m firmly in this camp) and the prospect of rate hikes on the horizon, even a few years out. This has the potential to sadly push people into more debt as cost of goods outpaces wage increases and the cost to service debt and mortgages etc will no doubt rise if interest rates rise, this will ultimately affect MCL’s customer base and sub prime lending will no doubt rise drastically. Clearly Morses is not without risk, I’d surmise most these risks are quantifiable and that’s why I’m personally happy with my holding here. Investor sentiment and phycology is a funny old thing and clearly will not change. Until theres a fundamental change of circumstance I'll retain my position, so many "if" and "buts", it's all market noise and to be expected. This is AIM after all. Good luck to all holders (and non holders), takes two to make a market! OD
22/3/2021
15:34
smithie6: 'if' the advfn numbers are correct then MCL - cap. value. 70M. EV 94M. cap. value is 74% of EV IPF- cap. value of 220M ; EV 632M cap. value is 35% of EV PFG- cap. value of 502M; EV 1700M cap. value is 30% of EV ------- in terms of assets wrt debt (the difference between the cap value & the EV is influenced a lot by debt MCL is the lowest risk & most solid share out of these 3, by miles. (For IPF the difference comes from its debt pile) ------ note that with a cap. value of 70 million many funds will see MCL as too small to invest in, even if its accounts are much lower risk than IPF or PFG. The bigger companies have the advantage/disadvantage of being international. (one of them closed one overseas subsidiary, Finland, so being international is no g'tee of success). ---- MCL has about 50 million nett cash I think I recall. The experience, customer lists, agent network, profit etc etc is only valued at 20 million. imo there is decent downside protection, but I'd rather it went up & not down !
15/3/2021
10:33
smithie6: Oxman MCL often mentions that 97% of clients say they are happy with MCL & the MD seems to sit, I think, on some committees with the regulators & MCL has low gearing & 86% of the money it lends out is its own compare with IPF where most of the money it lends out has been borrowed & at 9.7% !...& its interest cost is about 50 million ! ....so IPF MUST lend out that borrowed money, or it goes bust ! & hence has a lot of pressure to do deals with clients (& pressure to bend rules) whereas MCL is lending out money where 86% is its own cash & from the RNSs you can see that they have controlled & reduced lending ...when you lend out your own cash it makes you be a bit more cautious imo, & you can afford to be since you "dont" have big interest bills that much be paid ...the co. reports very high collection rates in recent months because of this.. ...being more cautious & selecting the better loan applications reduces the risks of problems with regulators imo (& imo as the economy opens up & improves I think the co. will increase its lending)
07/3/2021
12:59
smithie6: if of interest to anyone, here is a copy & paste from the last annual accounts for the info about the "...normal dividend policy of paying between 50% and 60% of normalised adjusted profits after tax." "This payment is in addition to the interim dividend already paid of 2.6p per Ordinary Share, making a total dividend for the year of 3.6p (FY19: 7.8p). This represents a total payment for the year of 38% of normalised adjusted profits after tax which is below our normal dividend policy of paying between 50% and 60% of normalised adjusted profits after tax. However, the Board has noted that the profit is largely before Covid-19 and believes that we should remain particularly prudent in the current uncertain times. " ------ EPS 2018 -10p 2019- 12p if take the lower number being a reasonable 1st target after recovery after the economy opens up again after Covid then 60% of this as a divi would be 6p. a divi yield of ~8% ------- ....whichever way I look at it the share price still has further to go imo even after the recent rapid rise from 50p
05/3/2021
15:50
smithie6: analysis of MCL vs IPF debt vs money lent out + cash held 1) MCl. previous post 86% of MCL's cash lent out was/is its own cash, not borrowed from a bank 2) IPF lent out =533 million cash 116 debts -492 tax debt. -26 payables-receivable. -80 debts + tax debt + pay/receive = 492 + 26 + 80 = 598 million minus cash of 116 = 598- 116 = 482 million. cash minus debt. (excluding money lent out) lent out 533 compare with 482 million nett debt. !! (if recoup all of money lent out (533), well, lets say 85% is recouped (453) & pay off the debts (482 million) the result is 453-482 = -29 million, ie. 29million of debt unpaid !!! (I'm surprised lenders were willing to lend them such a large amount, looks risky) compared with MCL that is terrible. & imo for solidity of accounts it is also terrible. I would not have lent IPF 492 million, even at 9.75%. (the lenders saw the risk, hence the high % rate). 90% of the money that IPF has out on loan is money it has borrowed (@ 9.75% ) !! as I posted before, not good. IPF is in a bad position. it has little in the way of 'real' assets based on these numbers & the cash it has lent out is basically almost all just borrowed money !! That infers risk. SUMMARY MCL is financially much more solid than IPF & also has about 1/2 of its cap. value as nett cash, & is hence a better/more solid investment than IPF imo. (& MCL is reporting a (reduced) profit for 2020, while IPF reported a noticeable loss !) Personally I would not invest in IPF since ~90% of its money out on loan is borrowed money. imo that is a terrible %. & its nett real assets positions looks to be -ve to me, & that is pretty bad imo. Also, the IPF cap. value is 223 million but the EV is 624 million !!. ~2.5 higher, cause of its mountain of debt. At present share buyers are ignoring that debt, & I think they are wrong. At MCL the cap. value is ~100 million & the EV is ~120 million, similar numbers, 'cause the MCL debt is small, :-). Much better situation than at IPF imo. ----- if anyone finds any error in my calcs please let me know, but it looks correct to me
04/3/2021
23:50
opaldouglas: Managed to have a good read of TU, really impressive. Based upon previous guidance I'd forecast HCC sales of £97M, so that's a beat of £13M based upon £109.7. MCL have issued updated throughout 2020 which have been most helpful, I based the last six months on an estimated average 80% of 2020 HCC sales. This gives us £51.2M (h1) vs £58.5M in h2. HCC sales of 109.7M extrapolated from historic levels generates revenues of £76.8M, allowing for "normal" impairment charges reduces to £72.4M. Again, base upon historic averages this translates into a PBT of 12.3M. If MCL decide they were perhaps too hasty with initial Covid write down this could increase. Again, digital is the short term drag (long term growth!) with breakeven pushing out to Feb 22 this increases my previous forecast a touch to £5.3M losses, hence a near £7M PBT for MCL for last FY, due in May. Now for the exciting bit, what HCC sales do we foresee for the rest of this FY? Todays update would suggest an avg h2 run rate of of 9.75M, clearly this has been rising since h1 and would have peaked higher around the seasonal Christmas period. In this regard I'd rather not second guess too much and suggest MCL sales will revert back to pre covid levels, perhaps next FY year ending Feb 2023 (Paul Smith did suggest MCL were 12 months away from HCC pre covid levels last Autumn). The date is almost incidental in my investment horizon, if it's this year, next or the one after I have a high degree of certainty sales will revert back as a minimum, this provides me with a good basis to forecast HCC sales will again match FY year ending Feb 20 with sales of 174M and PBT of 20.7M. Clearly a sensible PE should be used for what is not a particular racy company, I'd suggest 10, based upon a PBT of 20.7M, equating to circa £207 Mcap. This is more than double todays Mcap of £91M and closing price of 74p. Historically MCL was valued between 150p - 200p and with no dilution it's reasonable in my view that this is achievable again. I'm sorry to waffle, but we haven't really come to the exciting bit yet... dot digital. It's been a long slog for MCL to merge this acquisition and clearly it's been a drag on the share price. Although MCL have pushed back breakeven this is now due within 12 months and in my view this is the game changer for a substantially larger rerating. Dot digital provides a much larger target market 10-12M customers compared with 1.6M in the HCC market. MCL are clearly trying to cross sell products between HCC and Dot digital and are trying to take market share from high street banks and the wider credit market. Paul Smith has already been quoted last year stating that dot Digital will contribute the same amount of profits HCC has historically achieved pre covid within 3 years. This would equate to over £40M PBT for MCL. This would equate to a Mcap of £400M, that's over 4 times todays Mcap. The above doesn't account for MCLs loan book which is a net asset even allowing for any adverse impairments, including cash which I have penciled in at 46M end of this FY. One last point, I promise. For anyone who see inflation looming (I'm firmly in this camp) and the prospect of rate hikes on the horizon, even a few years out. This has the potential to sadly push people into more debt as cost of goods outpaces wage increases and the cost to service debt and mortgages etc will no doubt rise if interest rates rise, this will ultimately affect MCL's customer base and sub prime lending will no doubt rise drastically. MCL falls firmly into my value (and growth) portfolio, not many of these about, hence my excitement. Anyway, enough waffle. All in my opinion, I reserve the right to be completely wrong. I do also see further acquisitions in the HCC market whilst small scale lenders struggle to innovate and keep up. Good luck all. OD
03/3/2021
23:43
smithie6: I've had a look thru the IPF numbers, issued today. Too much debt imo. 500-600 million ( & @ 9.75% !! ) wrt the amount out on loan (it is a high % of the amount lent out !) or wrt the nett tangible assets; & that infers risk. (example to highlight my point if you have say 100 million lent out & a debt of say 90 million (costing 10% interest) then clearly there are risks. If you get hit by bad repayment numbers then clearly the impact on the bottom line & the security for having enough cash-assets to cover that 100 million loan are not so good. (although if your APR is 50% or 100% the numbers look better after X months once you collect a lot of that interest & some of the loan principal.) if you lend out 100 million & have a debt of 20 million & not 90 million then clearly the risk factor is much lower. (from the MCL interims there was 55 million lent out & a bank loan of 14 million. (& cash of 6.5 million (& receivables/payables roughly cancelling out; so bank loan minus cash was 14- 6.5 cash = 7.5 million, very low wrt cash lent out of 55 million. (so about 86% of the MCL cash out on loan was shareholder-company cash. nett cash. :-) . not borrowed at 9.7% interest like at IPF. :-) ) (& of course, lending out your own money & not bank money borrowed at 9.75% reduces your interest cost & increases your profit; & in competition might help MCl offer a loan at 50% vs 59.75% from IPF (+ 9.75%) making MCL more competitive :-). ) & MCL has a bank debt capacity of 40 million so if it wanted to an acquisition or rapidly lend out more money it could do it, whereas IPF is already using most of its permitted bank loan (& paying 9.75% interest for it !) Summary the financial stability/risk numbers & nett cash per £ of share for MCL are much much better than those of IPF. :-))
07/12/2020
16:02
opaldouglas: Ptolemy, certainly from the HCC side MCL issue guidance of 21%-26% for impairment. See below from recent results. “HCC gross profits before the Covid-19 adjustment increased to £64.7m (FY19: £62.4m), an increase of 3.7%. The gross profit percent increased to 54.2% from FY19 53.5%. Within the cost of sales, impairment before the Covid-19 adjustment increased from 22.2% to 23.1%, with poorer loan performances identified across newer and more remote customers in the last few months of the year. However, the overall performance still sits comfortably within our guidance range of 21.0% to 26.0%. The increased impairment costs were more than offset by agent commission costs reducing from 24.3% to 22.6%. This was as a result of there being no material territory build subsidies in the year and the full year effect of the phasing out during FY19 of the remaining commission protection arrangements to newer agents.” I don’t think MCL use the local heavies to recoup monies in this day and age and rather target a specific customer base where they can reduce risk. From their presentation last week Paul confirmed they refuse circa 75% of applications. You can look back through updates this year and see collections have been running at high 90's vs last year with the exception of March to June which ranged between 79% - 91%. Otherwise MCL have reported 97%, 93%, 96%. Clearly this is where the additional 5.2M impairment charge comes into play with the vast majority at the start of this financial year. I've based my forecasts on 97% collections for the last 4 months of the year from guidance released so far. Don’t get me wrong MCL have still taken a hit this year with an additional 5.2M of impairment which is a large chunk of change but they can take this on and large digital loses when HCC is throwing so much cash off. So.. unless MCL is providing fraudulent figures, customers in the main are still paying up. I actually think the saving grace here has been the governments furlough scheme, I'd imagine MCL would have been in a much worse place if this safety net had not been available for businesses and staff. In answer to your main question if customers do default they have to go from sub prime lending to underground lending one would have thought and have their credit file destroyed in the process. Only my humble thoughts, OD.
ADVFN Advertorial
Your Recent History
LSE
MCL
Morses Clu..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210624 08:52:05