Hardman & Co Research: Morses Club (MCL): Interim FY'20 results: steady core, deal upside

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 and management has reiterated its stretching guidance for FY'20 and FY'21. We also note the cash collected from CTL loans at acquisition is £11m, against an £8m consideration. Looking forward, management has outlined a clear, customer-demand-driven strategy in its area of competitive advantage. Please click here for the full report:

https://www.hardmanandco.com/research/corporate-research/interim-fy20-results-steady-core-deal-upside/

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