Putting People First
Morses Club PLC is an established, relationship-driven consumer finance provider.
We aim to meet the real need for responsible lending in the community across the UK, particularly for customers with a complex credit history.
Adjusted profit (Before Tax)£19.2m +8.5%
Reported profit (Before Tax)£16.1m +43.8%
Basic earnings per share (p)10.1p +53.0%
Adjusted earnings per share (p)11.7p +8.3%
Return on equity (%)26.5%
Return on assets (%)22.9%
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 43.8% to £16.1m (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)
At a glance
Built on trusted relationships with customers and agents throughout the UK, community lending is at the heart of our business.
Chief Executive Officer's Review
I am very pleased to report that 2018 was an even stronger year for Morses Club, reflecting our continued success in serving our core HCC market, delivering good customer outcomes and careful implementation of our prudent credit policy.Paul Smith Chief Executive Officer Chief Executive Officer's Review
Chief Financial Officer’s Operational and Financial Review
The Group has been able to maximise the opportunity created by structural changes in the UK Home Collected Credit market leader. This has helped to achieve a careful balance between customer and lending growth, investment in the future business with increased profits and asset returns as a result.Andy Thomson Chief Financial Officer Chief Financial Officer’s review
We are well positioned to capitalise on opportunities in this growing and fragmented market.
Strong market position
Well positioned for growth
Our business model
Our community lending model, centred on building personal relationships and lending responsibly to people with complex credit histories, delivers positive customer outcomes and value for stakeholders.
1 What we do
Loans for those who struggle to find credit elsewhere
Loans of £100 to £1,000, in cash or on a Morses Club Card
- Customer referrals
- Leaflet delivery
- Customer mailings
- Via agent
Proactive retention process
Face - to - face
- Evaluate suitability of customer against lending criteria
- Conduct credit checks
- Meet customer to understand needs
- Undertake affordability checks in the customer’s home
- Issue appropriate loan
- Ensure customer understands terms and conditions
- Agree a weekly repayment schedule
- Agents are paid in commission based on collections, not sales
- Local agents collect repayments weekly
- Identify issues quickly and sensitively through regular contact with agents
- Provide support to customers in short term difficulty
- Transparent, simple charging structure with no penalty or default fees, accrued interest or hidden charges
Treating - the- Customer - Fairly
2 How we create value
We use retained earnings and lower cost debt facilities to lend to our customers at a margin, and control the lending risks and costs in order to deliver consistent shareholder returns.
3 How we share value with stakeholders
As a business built on relationships, we take pride in establishing strong bonds with our teams and agents. This helps to deliver our ethos of treating our customers fairly, and ensuring high levels of customer satisfaction. This in turn means that our customers say they are happy to recommend us to friends and family.
We are proud to receive monthly customer satisfaction ratings that are consistently above 95%*
"I have been with them for years and they have always been good with me. They're reliable and honest. Every time we take out a loan we get a letter and our Agent always explains everything. She's friendly and professional at the same time." * Based on independent customer market research surveys (Mustard).
We are proud that more than 80% of agents feel that Morses Club helps them deliver great customer service*
"The support from my manager is exceptional. I receive excellent regular training." * Based on annual independent satisfaction surveys (Mustard).
We are proud that our employee satisfaction ratings increased by 20 percentage points since 2015*
"Morses Club is a very professional company, I feel valued and appreciated." * Based on annual independent satisfaction surveys (Mustard).