The bottom is in ?14 Mar 2025 21:13
presenting the awful results management were adamant that
- they have cleared the decks, the turnaround is firmly on track.
- 12 months ago there were uncertainties and issues that had not been identified and quantified. today these issues have largely been crystalised, dealt with and are in the rear view mirror.
- actions taken in 2024 position the group for sustainable, profitable growth in 2025 and beyond.
- progress in the second half of 2024 validates their outlook.
- they are optimistic looking forward. they do feel that on they are on a very good path.
industry vehicle finance selling uncertainties
on potential vehicle finance commission compensation they don't feel too exposed on the basis that
- they have never engaged in dca financing
- all customers signed a pre agreement document confirming that a commission was part of the agreement
- only 10% of their vehicle finance was placed via car dealerships
- the commission on this 10% over the years 2013->2024 was £23m. if they were involved in compensation it would be a percentage of that number.
complaints
- costs up 66% to £47m driven largely by pop-up cowboy cmc outfits (only 11% of complaints are upheld)
- new up front cmc charge of £250 to be introduced from april 1st will help.
- legal action continues against tms legal ltd.
outlook/guidance
- interest earning balances : £2.6bn @ fy25, £3.0bn @ fy26 (£2.3bn fy24)
- adjusted rote : low single digits @ fy25, low double digits @fy26, mid teens @fy27 ( minus 7.0% @ fy24)
- cost/income ratio : high 50s @ fy25, low 50s @ fy26, < 49% @ fy27 (65.9% @ fy24)
- if anything they think the opportunity is as big if not bigger that they anticipated at the interim's.
misc
when asked (me paraphrasing)
q: given that the company had a much higher valuation when it was previously run by a ceo/cfo who were so incompetent that they couldn't pour **** out of a boot if you wrote the instructions on the heel and in view of the lack of recognition that the company has received for the excellent work on the business transformation to date would capital allocated to share buy backs not serve share holders better ?
a: we see such opportunity in front of us that we feel the best use of capital is to deliver the to the published plan.
it is just my opinion but i do feel that new management are orders of magnitude more credible and competent than what went before. i do think the bottom is in and we build from here.
however don't take my opinion. watch the results presentation and make up your own mind ( https://webcast.openbriefing.com/vanquis-fy24).
Sign In
Follow the stocks
