Share Name Share Symbol Market Type Share ISIN Share Description
Morses Club LSE:MCL London Ordinary Share GB00BZ6C4F71 ORD GBP0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -1.875p -1.45% 127.625p 125.25p 130.00p - - - 3,488 16:35:18
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial - - - - 165.27

Morses Club Share Discussion Threads

Showing 151 to 175 of 175 messages
Chat Pages: 7  6  5  4  3  2  1
DateSubjectAuthorDiscuss
22/8/2017
19:27
Thanks Jeff H, confirms my own thinking.
blueliner
22/8/2017
10:19
I been buying here lately. Last weeks RNS was positive with Numis increasing their forecasts on the back of it. Trading Update next week. Beaufort positive as well:- Morses Club (MCL.L, 119.00p) – Buy The UK's second largest home collected credit ('HCC') lender, on Friday announced that the Group has secured the addition of one of the UK's leading high street lenders to its existing loan facility (the 'Facility'). Sitting alongside the existing funder, Shawbrook Bank, this has increased the overall revolving facility from £25m to £40m. The Facility has also been extended from its existing expiry date of March 2019 to August 2020. This is strategic in respect of supporting growth strategy of the business, providing the certainty of long-term funding and enabling Morses Club to continue its expansion plans, taking advantage of the current opportunities in the market place. Our View: The quite dramatic tumble in Morses' share price that took place mid-July to mid-August provides an important buying opportunity. Morses had been lumped together with others in the UK's non-standard finance sector, all of which took a sharp hit as the dominant player, Provident Financial, warned that its Consumer Credit Division ('CCD') had been severely impacted by disruption from its migration to a new operating model. Shortly after this, early in August, Non-Standard Finance plc also provided its own half year results, from which several commentators suggested as NSF was successfully stealing market share from what they suggested were various sleepy peers, including Morses Club. The interpretation was wrong in both cases. Firstly, the hit on Provident Financial's CCD division was largely self-inflicted. Its move from commissioned agents to contract staff, while also seeking to migrate away from the bottom rung of accounts, had been badly planned and effectively handed significant numbers of active agents to competitors. A real own goal! As far as Non-Standard Finance itself is concerned, the Company continues to make progress, although this comes at a cost; divisional impairment at the H1 stage rose to 37.5% (compared to 28.7% last year), with the loan book rising 16% despite customer numbers falling 10%. After central costs, NSF's Loans-at-Home is still not generating a profit while quoting their number of new agents as rising by 229 following Provident's loss something like 250. Morses, by comparison, is expected to add up to 600 new agents by its February 2018E year end and Friday's announcement detailing its new larger revolving facility, demonstrates management's confidence that activity levels set to deliver a step improvement. Yes, there will be some short-term costs for this expansion but, as Beaufort explained back in a note on 21st June, the anticipated squeeze in margins will be more than compensated in the P&L just one further year out. The Group's trading update, expected on 31st August, is likely to outline management's confidence in its strategy going forward. Far from being 'sleepy', Morses' current push is expected to deliver an impressive leap in both revenues and earnings by year-end February 2020. Beaufort has re-set its P&L projections in response to Friday's announcement, which now places the shares on 2019E and 2020E earnings multiples of 10.0x and 7.2x, together with yields of 6.1% and 8.3% respectively. Much too cheap considering an operation that this year should deliver 24% ROE on a P/BV of just 2.5x. Beaufort retains a price target for Morses Club of 155p/share along with its Buy rating.
jeff h
22/8/2017
08:46
MCL should pick up a bit of business from PFG after their horrendous TU this morning - but they are too small currently to take it all on - not sure who is going to gain (MCL, NSF) or will PFG rebuild?
dendria
18/8/2017
10:18
2 million shares gone through at mid price....
battlebus2
18/8/2017
08:47
Yes apparently moving over in droves 🤔
battlebus2
18/8/2017
07:55
Also pleasing to see 'The territory builds in progress to date are performing ahead of management's expectations'. I assume many of the new agents are ex-PFG.
dendria
18/8/2017
07:45
Good news this morning with new loan facility of 15 mm now 40 mm in total from existing lenders so they must see a viable business. Helping to fund the raft of new self employed agents circa 400. 👍
battlebus2
11/8/2017
16:24
Shroders down to 4% now, buyer should be notifying shortly.
battlebus2
10/8/2017
23:32
On the face of it...
bullsvbears
10/8/2017
17:55
Did someone actually buy £1.6M @ 115p at 16:26?
dendria
09/8/2017
13:18
Shares slumping to £1 bid, now looking rather silly not selling.
battlebus2
01/8/2017
07:03
Thanks GHF....indeed.
battlebus2
31/7/2017
23:54
BB2 - You've just missed the divorce settlement reference in the RNS. "Morses Club PLC ("Morses Club" or "the Company"), the UK's second largest home collected credit ("HCC") lender, announces that on 24 July 2017, Paul Smith, Chief Executive Officer of Morses Club, sold 327,580 ordinary shares of 1 pence each in the Company ("Shares") at a price of 130p per Share. Mr Smith was required to undertake this transaction pursuant to a divorce settlement." Kind regards GHF
glasshalfull
31/7/2017
21:10
Never put much weight on director sales. They can be for all sorts of reasons. Director buys, particularly large ones, have more a bearing on sentiment than any other buy/sell executive activity.
minerve
31/7/2017
17:52
Apparently someone suggested earlier it was to satisfy a divorce settlement. I'm sticking with it for now as I believe the ceiling is around 115 for now so don't expect it to fall further at least not for now but everyone make your own minds up as GHF is rarely wrong.
battlebus2
31/7/2017
16:08
Hi GHF - Thanks for your interesting post and heads up on your own position. nw99 - It is true that the CEO sold half of his shares last week but he still retains the rest (327,500). What is more significant is the CFO Andy Thomson who holds 5, 676,939 shares and has not made any share sales this year. That is hardly a sign of "no confidence here"
masurenguy
31/7/2017
15:49
Director sells no confidence here
nw99
28/7/2017
19:51
Geez!! Thanks GHF for your openness in your position here, it always was a concern here and is even more so given your post. Not going to panic into selling as I'm here for the income which looks pretty safe at the minute. Well that's more weekend thoughts you've given me 🙄
battlebus2
28/7/2017
19:28
Forgot to add the update contained in Provident results this week concerning IFRS9 HTTPS://www.investegate.co.uk/provident-fin-plc---pfg-/rns/half-year-report/201707250700049487L/ IFRS 9 IFRS 9 'Financial instruments' is effective from 1 January 2018 and replaces IAS 39 'Financial instruments: Recognition and measurement'. IFRS 9 significantly changes the recognition of impairment on customer receivables by introducing an expected loss model. Under this approach, impairment provisions are recognised on inception of a loan based on the probability of default and the typical loss arising on default. This differs from the current incurred loss model under IAS 39 whereby impairment provisions are only reflected when there is objective evidence of impairment, typically a missed payment. The resulting effect is that impairment provisions under IFRS 9 are recognised earlier. This will result in a one-off adjustment to receivables and reserves on adoption and will result in later recognition of profits in growing businesses such as Vanquis Bank, Moneybarn and Satsuma. Despite the adjustment required to receivables and net assets, it is important to note that IFRS 9 only changes the timing of profits made on a loan. The group's underwriting and scorecards will be unaffected by the change in accounting, the ultimate profitability of loan is the same under both IAS 39 and IFRS 9 and more fundamentally the cash flows and capital generation from a loan remain unchanged. The group's bank covenants are unaffected by IFRS 9, as they are calculated based on accounting standards in place prior to the introduction of IFRS 9 and, based on latest draft guidance, the regulatory capital impact of IFRS 9 is expected to be phased in on a transitional basis over five years. The group also had over £200m of distributable reserves as at 31 December 2016, more than sufficient to accommodate the impact of IFRS 9. The group has made good progress on quantifying the impact of IFRS 9 and now expects to be in a position to provide an impact analysis at a separate presentation for analysts and shareholders to be held during the second half of the year. --- Regards, GHF
glasshalfull
28/7/2017
18:53
MCL Courtesy to update holders/lurkers that I've completely sold out, especially having been positive on the Morses as my handful of posts here testify. This isn't a reflection on the company or this week's 300k sale by the CEO but rather prompted by the recent 19% EPS downgrade by Numis & reduction in their target price on MCL, which saw them reducing from 149p to 138p. This was part of a wider downgrade by Numis on the speciality finance sector on 03.07.2017 which saw them slash earnings forecasts & t/p on a number of finance companies (posted photo of downgrades via my twitter post). This downgrade followed MCL's positive June t/s & strong set of maiden results. Numis have been v bullish on the company so following their 19% earnings downgrade I did some digging to ascertain their rationale. I've come across articles that indicate the introduction of accounting standard IFRS9 will impact lenders by requiring them to provide for Expected Credit Loss in relation to performing assets during the following year to the lending & provide for this loss over the life of the asset. It appears that the reporting period after January 2018 will introduce a one-off increase in balance sheet impairment. This pdf from KPMG from 2016 may explain the impact more succinctly than I can. Plenty other articles if one roots about. HTTPS://assets.kpmg.com/content/dam/kpmg/xx/pdf/2016/09/IFRS-9-for-banks-flyer-2016.pdf IFRS9 forces lenders to recognise impairment earlier & I believe this may be one of the reasons for the Numis downgrade, as in reality MCL will be subject to impairments based on their 2018 loan book. Anyway, the impact of IFRS9, Numis downgrade & the potential fallout (or uncertainty) in the sector following Provident's recent results & outlook in relation to IFRS9 have resulted in me selling down over the last fortnight. My patient selling certainly didn't impact the shareprice until today when my final few 5k share sales around midday appear to have triggered stop losses as you can see from the AT trades that kicked in. My apologies, as I was attempting to exit fully with a clean pair of heals rather than trash the shareprice. Almost succeeded but always the difficulty when building a modest holding in an illiquid share. I like MCL and management team & didn't foresee selling down this early, but there are simply too many uncertainties for me at present. Small profit & decent dividend received, however happy to spend time on the sidelines for the time being. GLAH. Kind regards, GHF
glasshalfull
28/7/2017
17:37
Looks like a forced sale from the CEO as part of a divorce settlement and not a reflection on the company.
sttrader
28/7/2017
14:55
Bit of a recovery from the 115p thankfully....
battlebus2
28/7/2017
13:14
not a massive holding left either tbh
panic investor
28/7/2017
13:10
Getting a hammering today, not good to see the CEO half his holding this week.
battlebus2
17/7/2017
22:24
Cheers GHF
masurenguy
Chat Pages: 7  6  5  4  3  2  1
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