Morses Club — H1 2022 Earnings Presentation
13 slides from Morses Club's earnings presentation, Oct 7, 2021
Slide 1: 2022 Interim Results
2022 Interim Results Paul Smith - CEO 7 October 2021 Graeme Campbell - CFO
Slide 2: Highlights
Highlights
Slide 3: Operational Highlights
Operational Highlights Group • Deliberate strategic investment to support strong demand in Digital loans and HCC business in H1 • Continued progress in the plan to restructure the Group HCC Digital • Customer numbers remain stable • 100% increase in customer numbers for both short-term and long-term
Slide 4: Financial Highlights
Financial Highlights Group HCC Digital Credit issued (£m) 77.8 (HY21: 60.2) 53.1(HY21: 51.1) 24.8 (HY21: 9.1) Adjusted profit before tax (£m) 2.6 (HY21: 2.3) 7.3 (HY21: 6.8) (4.7) (HY21: (4.5)) Statutory profit before tax (£m) 1.8 (HY21: 0.8) 6.5 (HY21: 5.6) (4.7) (HY21: (4.8)) Customer numbers (000
Slide 5: Financial Review
Financial Review
Slide 6: Income Statement – HCC
Income Statement – HCC £’m unless otherwise stated Commentary H1 FY22 H1 FY21 Change Customer numbers ('000's) 144 170 (26) • Credit issued of £53.1m increased £2.0m Period end receivables 45.3 50.4 (5.1) compared to £51.1m for H121. This was due to Average receivables 48.0 61.5 (13.5) the unlocking
Slide 7: Income Statement – Digital
Income Statement – Digital £’m unless otherwise stated Commentary • Credit issued increased by 173% to £24.8m H1 FY22 H1 FY21 Change Customer numbers ('000's) 52 35 17 from £9.1m last year – a 3 fold increase Period end receivables 15.0 5.2 9.8 Average receivables 8.2 5.4 2.8 • Period end net receiv
Slide 8: Impairment
Impairment £’m unless otherwise stated • Both HCC and Digital products are achieving targeted risk-adjusted returns H1 FY22 H1 FY21 Change HCC Digital Impairment (6.5) (8.3) 1.8 Impairment/revenue % 16.8% 18.8% (2.0%) • Digital impairment has increased above the Digital guidance range of 45% to 55%
Slide 9: Complaints
Complaints • The number of complaints received continues to be proportionate and lower than other lenders in the sector • There has been an increase in complaints received • We are fully compliant with our DISP requirements with regard to investigating each complaint • The costs of complaints appear
Slide 10: Balance Sheet
Balance Sheet £’m Commentary Aug-21 Aug-20 • Decrease in total equity reflects timing Non current assets impact of increased impairment levels Goodwill 12.9 13.0 Acquisition intangibles 0.6 0.6 Software and licences 9.0 8.3 • Continued investment in our technology Plant and equipment 0.7 0.8 platfor
Slide 11: Cash Flow
Cash Flow £’m Commentary H1 FY22 H1 FY21 • Operational cash flows were lower in H1 FY22 Cash from operations excluding than prior year as a result of a return to investment in loan book 4.8 4.9 normal levels of new credit issued following Cash from funding 9.5 - the pandemic (Increase)/Decrease in n
Slide 12: Summary and Outlook
Summary and Outlook
Slide 13: Summary and Outlook
Summary and Outlook Confident of good demand for digital loan products as we take advantage of the fragmented and fluid digital market Economic recovery and changes expected to impact individual finances, presenting further demand opportunities but also potential collection challenges Focus on broad