Morses Club Share Discussion Threads

[smithie6] 04/3/2021 11:33

nice update

----

I noticed that there is marked increase in PBT between H1 & H2.

(H1 regulatory PBT was 0.8 million & annual PBT is >2.8 million, so H2 PBT was >2 million. If say 2.5 in H2 then the increase from 0.8 is very clear.

On-going improvement, & increasing the loan book, as one would expect. And the benefits from closing 89 offices will increase the annual PBT for this new financial year that is just days old.

The impression I have is of a well run company that has handled the crisis very well. & with an improving outlook. :-)

(& at the end of H2 about 86% of the money lent out was company/shareholder money & not borrowed money (this is good for risk & solidity)

& so there with plenty of headroom to increase its loan book if it deems it suitable. (bank facility is 40 million & at H1 the bank debt was 14 million, if bank debt is now around 10 million then there is 30 million headroom to increase lending, wrt a loan book of about 50-55 million)

(imo the co. is in a much much better position than IPF)

[yump] 04/3/2021 11:26

Sellers brains working overtime - auto-sell at previous high ;-)
Reminds me of Toy Story "The Chart is our Master"

[opaldouglas] 04/3/2021 10:01

Brilliant update, digital breakeven pushed back by a qtr it would seem but that’s nothing to worry about in the bigger picture. I think the market still struggles with MCL and the valuation continues to be far to low.

HCC continues to throw off high levels of cash and digital stops becoming a drag on the share price as they build up the loan book and finally bed in acquisition. Will update my forecast later.

OD

[yump] 04/3/2021 08:55

Yes all looking good. Must be some decent savings to come from the move away from branches - 89 is a lot !

[ronwilkes123] 04/3/2021 08:34

The key thing you have to really look for is the results are ahead of all market expectations two are low but one is at 4 million ish. The other thing is the phrase noticing pent up demand.

Make no mistake these are excellent results and this should definitely be back at 1poind within 6-12 months

[ronwilkes123] 04/3/2021 07:05

Profit ahead of expectations and confidence in online break even, and another divi

Look good to me

[yump] 03/3/2021 23:44

Smithie
No it was ron’s comment

[smithie6] 03/3/2021 23:43

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. :-))

[smithie6] 03/3/2021 23:31

ah, yes, forgot to mention that. oops

[speny] 03/3/2021 21:22

IPF reported their results today, that's why they were up, even though at first glance the figures did not look particularly good.

[smithie6] 03/3/2021 21:18

(if you were replying to my post....I didn't mention the budget

MCL & IPF both up today, so the sector seems quite happy with the budget imo)

[yump] 03/3/2021 19:24

I don't think that some sells and the budget happening on the same day necessarily means they are remotely related.

There could still be a few twitterati numpties on the 70p sell.

[smithie6] 03/3/2021 17:36

...I guess that some sellers might be ppl just taking profit & avoiding the trading update

I could do that but imo the sector is re-bounding & future outlook from cos. seems to be 'improving outlook, with confidence'
....IPF up 10% today

& we had a recent director buy at about this price....

so the risk/reward is stacked in favour of 'keep holding' imo
give it time, let it develop...

[ronwilkes123] 03/3/2021 14:58

but weve found a few sellers today after the budget

understandable

[smithie6] 03/3/2021 14:42

good point

11th March last year
so, at any time but next week phps looks more likely than this week

I'm very hopeful for good news, partly based on the recent last dir. share buy

[ronwilkes123] 03/3/2021 14:29

remember closing trading statement any day

[smithie6] 03/3/2021 13:45

+3%/every day

better than nothing I suppose. :-(



je je !

[smithie6] 03/3/2021 13:03

I think your English level is better than mine, I had to look up what cogent means !!

je je

[ronwilkes123] 03/3/2021 12:30

nice 1p divi if you hold another week too

[smithie6] 03/3/2021 12:06

results from IPF are out

'profitable' & 'trade is improving'

were the key points I saw

-----

MCL doing very nicely in last week or so
new buyers arriving
& phps the number of sellers has reduced
chart looks very good

onwards & upwards

[eggbaconandbubble] 03/3/2021 08:51

Hopefully we will now see peeps taking their recent profits in AMGO & NSF and piling into something more cogent!

[smithie6] 02/3/2021 16:30

....gone on-line

(which reduces costs for processing loans, & reduces commission ...)

[ronwilkes123] 02/3/2021 16:05

Drove past hq today like a ghost town - they must be back soon

[smithie6] 27/2/2021 13:26

btw

the CFO had roles including digital & IT strategy in his last job

so, he is not just a bean counter

& hopefully him buying shares recently indicates that he is happy with the progress in the digital/IT division & also happy with the financial numbers for the financial year which ends any day now.

:-)