Strategy presentation 27th March29 Mar 2024 13:37
Watched the strategy presentation back last night and overall quite impressed really.
The management team appear to be from a diverse background in finance and have some good ideas about how to attract new customers through branding and digitalisation methods.
I imagine many customers in the “struggling but managing” demographic will welcome the snoop app to help them better manage their finances. This will also attract new customers.
The biggest issue I can currently see is around how to mitigate future spurious claims. That is a big problem at the moment and has obviously hurt the share price. I know they have initiated a legal challenge against one CMC, but if your business is open to receiving an uncontrolled flow of £750 admin charges for each claim, this is clearly a problem and you can tell that Ian knows it.
I have loaded up with shares over the past week as the short terms issues will be resolved in my opinion, but it will take some time. I wouldn’t expect the rebound to over £1 until next year. After 10 years of decline, and many fingers burnt, some investors will take some convincing. But for the longs, this looks like a good 5 year investment.
As the only player in the sun-prime lending market, Vanquis have the monopoly and if the new management deliver on their vision, could see the share price 10x over the next 5 years.