Annual Report and Accounts 2019

Built on

Morses Club PLC is an established, relationship-driven non-standard finance provider.

Our purpose

We aim to meet the real need for responsible lending in the community across the UK, particularly for customers with a complex credit history.

Our vision

To build the market-leading non-standard credit company in the UK – with our customers and our people at the heart of our business.


Adjusted profit (Before Tax)

£22.0m +14.6%

Basic earnings per share (p)

12.5p +23.8%

Adjusted return on equity (%)

29.6% +11.9%

Reported profit (Before Tax)

£20.2m +25.5%

Adjusted earnings per share (p)

13.6p +16.2%

Adjusted return on assets (%)

25.4% +10.9%

Operational highlights

The purchase of the loan books of two well-established Home Collected Credit (HCC) regional businesses in line with our strategy

30,000 Morses Club Card customers, an increase of 42.8%, with £15.5m in loan balances (FY18: £10.6m)

Technology continues to enhance Morses Club’s offering, with a new Customer Portal launched during the year, which complements the agent relationship by providing a digitally enabled, end-to-end customer journey

Introduction of Good Customer Outcomes surveys, with an overall result of 97%, as well as continued high levels of customer, agent and employee satisfaction

Post-period end, completed the acquisition of the business and certain assets of CURO Transatlantic Limited, a provider of online loans in the non-standard credit market

Company Overview

Responsible community lending is at the heart of our business.

Self employed agents




Loan book


UK Home collected credit provider


Year of home colected credit experience


Branches throughout the UK


Chief Executive Officer's Review

"A year of solid results, with attractive opportunities for further growth."

Paul Smith Chief Executive Officer Chief Executive Officer's Review
Paul Smith, Chief Executive Officer Paul Smith, Chief Executive Officer

Investment Case

We are well positioned to capitalise on opportunities in this growing and fragmented market.

Strong market position

#2 Home Collected Credit company in the UK, and gaining share

235,000 customers across the UK, up by 2.6%

High levels of customer satisfaction and repeat business

Scalable infrastructure

Scalable, highly invested IT platform

Widening product offering

Well positioned for growth

Roadmap of organic growth initiatives

Well placed for consolidation in a fragmented market

Untapped market potential of c.8m people

Sound risk management

Prudent credit risk policy, applied through face to face contact by agents: every customer, every loan

Robust balance sheet and funding model

Proven financial performance

Revenue up by 6% vs. last year

Loan book growth of 6%

Cash generative business model that allows for a progressive dividend policy

Experienced and stable executive team

c. 100 years of home credit experience

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.

What we do

We offer loans of £100 to £1,000, in cash or on a Morses Club Card, for customers who struggle to find credit elsewhere.

We meet most of our customers face-to-face, and treating the customer fairly is our core philosophy.

Lend responsibly

  • Evaluate suitability of customer against lending criteria
  • Conduct credit checks
  • Meet customer to understand needs and undertake affordability checks
  • Issue appropriate loan, ensuring customer understands terms and conditions
  • Agree a weekly repayment schedule
  • Agents are paid in commission based on collections, not sales

A full income and expenditure check is done with every loan, using evidenced income.

15% of net disposable income is used on average for loan affordability calculations

Collect responsibly

  • Local agents collect repayments weekly
  • Identify issues quickly and sensitively
  • Support customers in short-term difficulty
  • Transparent, simple charging structure with one fixed fee and no penalties or late payment fees. Customers never pay more than the original agreed amount.

We only lend to customers who can afford the repayments.

63% of loan applications are not progressed

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.

How we share value with stakeholders









People First

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 achieve consistently high monthly customer satisfaction ratings.

"They are always reliable, the staff are polite and always helpful. All the staff I have met so far feel like a friend of the family."
* Based on annual independent satisfaction surveys (Mustard).


We are proud that more than 77% of agents feel that Morses Club helps them deliver great customer service.

"I'm happy with the support of the management team, the flexibility within the role, and the potential rewards to be made."
* Based on annual independent satisfaction surveys (Mustard).


We are proud that our employee satisfaction ratings increased by more than 20 percentage points since 2015.

"I feel as though I'm working for a progressive company that are always looking to improve how they work."
* Based on annual independent satisfaction surveys (Mustard).