A director at Morses Club sold 464,119 shares at 43p and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Hardman & Co Research Q&A with Mark Thomas on Morses Club plc (MCL): Value-added, customer-driven expansion from core 12-Feb-2020 / 10:30 GMT/BST Hardman & Co Research: Value-added, customer-driven expansion from core Morses Club (MCL) is the topic of conversation when Mark Thomas joins DirectorsTalk. Mark explains why he has called his report 'Value-added, customer-driven expansion from core', the importance of company strategy being formulated by customers, what Morses Club is expanding into and the size of opportunity for the company. Please click on the link below to listen to...
We recently published a paper, Share ownership: For the many, not the few, based on a statistical survey of share ownership, produced jointly with Argus Vickers, the share analysis service. The Office for National Statistics (ONS) has now issued its equivalent survey. This paper compares its results with ours. Although there are, inevitably, differences in the detail, the two surveys reach the same conclusions. The two key themes from the surveys are that: i) investors from the Rest of the World...
MCL’s recent results (see our 21 October note, Interim FY’20 results: steady core, deal upside) highlighted the strength of Home Collect (HCC). The division showed operational efficiency improvements, the appropriate use of technology and improving credit. It also generated double-digit underlying profit growth, despite a stable market and without compromising the agent-driven model. In this note, we explore MCL’s strategy to expand from this strong core business. The strategy is driven by...
Hardman & Co Research Hardman & Co Research: Morses Club Plc (MCL): Value-added, customer-driven expansion from core 15-Jan-2020 / 16:05 GMT/BST Hardman & Co Research: Value-added, customer-driven expansion from core MCL's recent results (see our 21 October note, Interim FY'20 results: steady core, deal upside) highlighted the strength of Home Collect (HCC). The division showed operational efficiency improvements, the appropriate use of technology and improving credit. It also generated double-digit underlying profit growth, despite a stable market and without compromising the agen...
The Office for National Statistics (ONS) is due to publish its most up-to-date survey on share ownership in mid-January, which identifies the beneficial owners and decision- makers of the stock market. Hardman & Co has worked together with the share analysis service, Argus Vickers, to jointly produce its own survey, which anticipates the conclusions of the ONS survey but goes into much greater detail. Our work does not use a sample of 200 quoted companies as the ONS historically has, but rather ...
MCL’s core HCC division once again delivered a strong performance. Market volumes remain subdued, but 11% underlying profit growth has been delivered, with efficiency gains and good credit (20% reported adjusted growth). The acquired businesses’ performances required incremental investment, and initial lending appears slightly behind track, but these issues are short-term and management has reiterated its stretching guidance for FY’20 and FY’21. We also note the cash collected from CTL l...
Hardman & Co Research Hardman & Co Research: Morses Club (MCL): Interim FY'20 results: steady core, deal upside 21-Oct-2019 / 09:35 GMT/BST Hardman & Co Research: Interim FY'20 results: steady core, deal upside MCL's core HCC division once again delivered a strong performance. Market volumes remain subdued, but 11% underlying profit growth has been delivered, with efficiency gains and good credit (20% reported adjusted growth). The acquired businesses' performances required incremental investment, and initial lending appears slightly behind track, but these issues are short-term an...
► Since their privatisation in 1989, the 10 water companies have faced a periodic review every five years; it is undertaken by Ofwat, and prescribes customer prices, along with the investment requirements. ► As part of the ongoing review, PR19, Ofwat will publish its Final Determination numbers on 11 December 2019; they will apply as from April 2020, although water companies do have the option to seek a reference to the CMA. ► The three quoted water companies – Severn Trent, South West...
Feature article: AstraZeneca: Where has all the cash gone? Historically, AstraZeneca (AZN) was a leading global pharmaceutical company, but it has slipped down the rankings following a period of patent expiry on major drugs, notably Nexium, Losec and Seroquel. Understandably, the financial performance, particularly operational cashflow, has suffered during this period. Over the past two months, there have been two events which I did not expect to see during my time as a pharmaceuticals analyst ...
We took two key messages from the FY’19 results announced on 2 May. First, the core business is now in a reliable, steady state with modest organic volume growth. It should, however, generate profit growth from acquisition opportunities and technology-driven efficiency improvements. As always, the agents remain core to the group but incremental returns can be generated from managing them better. Conservatively managed growth is being driven from the new business lines. Management has indicated...
Hardman & Co Research Hardman & Co Research: Morses Club (MCL): Steady, reliable core, growth in new business lines 03-Jun-2019 / 07:15 GMT/BST Hardman & Co Research: Steady, reliable core, growth in new business lines We took two key messages from the FY'19 results announced on 2 May. First, the core business is now in a reliable, steady state with modest organic volume growth. It should, however, generate profit growth from acquisition opportunities and technology-driven efficiency improvements. As always, the agents remain core to the group but incremental returns can be generated from ...
Politicians and business leaders often refer to small and mid-size quoted companies (SMQCs) as being pivotal to the future of the British economy. But the definition of “small and mid-size†can cover a huge range of companies, and the difference between the UK’s largest companies and the rest is stark, as we present in this paper. In particular, we examine the companies quoted on the UK’s public equity markets to highlight the difference in size between the largest 100 companies and the...
Hardman & Co Research Hardman & Co Research: Morses Club (MCL): Home collect and online lending acquisitions 15-March-2019 / 15:20 GMT/BST Hardman & Co Research: Home collect and online lending acquisitions On 26 February, MCL announced the acquisition of the online lender CURO Transatlantic for a consideration of ca.£8.5m. Curo has a net loan book of ca.£10m and 50,000 customers. This deal is strategic in that it transforms the online lending business with a much-enhanced decision engine, infrastructure, carefully selected customers and all for a discount to book. MCL also announced the...
This Investment Research Paper addresses the issue of renewable power generation in the UK and in mainland Europe, which – after the deep-seated financial crisis of 2008/09 and the ensuing recession – now has better prospects of achieving critical mass. It also considers investment perspectives. In recent years, there has been a major shift in favour of renewable generation. It has been led by wind generation, mainly on-shore but also increasingly off-shore. In the UK’s case, there has be...
The 4 October results confirmed steady growth, controlled risk and delivery in line with expectations. Double-digit underlying revenue and earnings growth was generated from stable customer numbers, and achieved more efficiently with fewer agents. The Provident Financial opportunity is now embedded and management can focus on new growth initiatives. We reviewed MCL’s focus on quality in our 19 July 2018 note, Quality Street, highlighting how conservatism runs throughout MCL’s lending, accoun...
Hardman & Co Research Hardman & Co Research: Morses Club (MCL): Sustainable growth from focus on quality 23-Oct-2018 / 14:30 GMT/BST Hardman & Co: Sustainable growth from focus on quality The 4 October results confirmed steady growth, controlled risk and delivery in line with expectations. Double-digit underlying revenue and earnings growth was generated from stable customer numbers, and achieved more efficiently with fewer agents. The Provident Financial opportunity is now embedded and management can focus on new growth initiatives. We reviewed MCL's focus on quality in our 19July 2018 no...
We have repeatedly asserted that providers of Home Collect Credit (HCC) need to understand their customers’ thinking in order to lend profitably. Equally, to properly appreciate the risks and rewards that the HCC companies offer investors, we need to understand their corporate culture. In this note, we review MCL’s focus on quality, giving practical examples of how the group aims to generate sustainable profit growth. Conservatism runs throughout MCL’s lending, accounting, agents, customer...
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