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Morses Club executive shows the faith

One non-executive director has bought £250,000 in shares in the newly listed sub-prime lender
October 26, 2016

With the appetite for credit showing no sign of abating, the amount of credit issued by sub-prime lenders has grown rapidly during the past five years. While Morses Club (MCL) is one of the newer entrants to the market, it too is growing its customer base and receivables fast. It seems non-executive director Peter Ward has faith that this growth can continue, buying shares worth more than £250,000 in the group.

IC TIP: Buy at 120p

Morses Club increased the total amount of credit issued by almost a fifth to £66m during the first half of the year. However, this growth came at a price. Management has been investing in growing its agent numbers by attracting employees from rival lenders. The benefit is these agents often bring their clients with them once the term of their existing loan has expired. Morses Club pays these agents a subsidy during the first year of their employment to maintain their income. This increased commission costs meant pre-tax profit declined by almost a third to £4.6m.

 

Buys

CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Amiad Water Systems Amos Shalev14 Oct 167,50014210,6502,050,1939.046
Dalata Hotel  Stephen McNally13 Oct 1618,000367.8264866,209300,6110.164
IG♥ Paul Mainwaring (cfo)17 Oct 1630,000848.87254,66130,0000.008
Ilika* Keith Jackson18 Oct 1620,0005010,00020,0000.026
Ilika* Mike Inglis (ch)18 Oct 1650,0005025,000115,0000.147
Ilika* Graeme Purdy (ceo)18 Oct 1620,0005010,000609,4270.777
Ilika* Sir William Wakeham18 Oct 1620,0005010,00020,0000.026
JPMorgan Smaller Companies Investment Trust Michael Quicke (ch)18 Oct 162,197794.62517,45811,4090.068
Lloyds Banking  António Horta-Osorio (ceo)18 Oct 163,54953.2261,88911,905,8200.017
Marshall Motor Holdings Alan Ferguson18 Oct 1625,00015037,50058,5570.076
Marshall Motor Holdings Peter Johnson (ch)18 Oct 1625,00015037,500175,3280.227
MaxCyte John Johnston19 Oct 1637,5009836,75037,5000.086
Metal Tiger Paul Johnson14 Oct 16400,0002.71910,87610,000,0001.535
Morses Club Peter Ward13 Oct 1675,00012997,21975,0000.058
Morses Club Peter Ward14 Oct 16125,000130162,500200,0000.154
NanocoChristopher Richards (ch)14 Oct 1655,57653.9830,00098,9970.042
Nanoco  Christopher Richards (ch)17 Oct 1619,83350.4210,000118,8300.050
Nanoco  Gordon Hall13 Oct 1618,23054.399,915268,2300.113
Nostra Terra Oil & GasMatt Lofgran (ceo)13 Oct 161,600,0001.3120,9605,975,9766.253
Pearson Coram Williams (cfo)19 Oct 165,00075337,65010,0100.001
Pearson John Fallon (ceo)19 Oct 1610,000754.575,450303,0560.037
Restaurant Group (The) Andrew McCue (ceo)18 Oct 1650,000356.7178,35050,0000.025
Restaurant Group (The) Barry Nightingale (cfo)18 Oct 1613,617362.549,36213,6170.007
Restaurant Group (The) Debbie Hewitt (ch)18 Oct 167,012354.5224,85935,6420.018
Revolymer Brian Dobson (ch)13 Oct 1614,500344,93083,5000.106
Revolymer John Keenan13 Oct 16150,0003451,000931,7501.185
Revolymer Michael Townend13 Oct 1629,000349,86064,9400.083
S&U Graham Coombs19 Oct 166,0002500150,0001,577,45713.187
Travis Perkins Christopher Rogers19 Oct 163,6001381.917149,7496,0480.002
Travis Perkins Tony Buffin19 Oct 163,0001401.67942,050123,1490.049
Tritax Big Box REIT* Richard Jewson (ch)18 Oct 163,9661325,23558,5110.005
Tritax Big Box REIT*♥ Richard Jewson (ch)18 Oct 167,4911329,88866,0020.006
Tungsten Corp David Williams (cfo)14 Oct 1625,00059.437514,859103,2000.082
Tungsten Corp David Williams (cfo)14 Oct 1625,00059.742514,93628,2000.022
Volution  Claire Tiney14 Oct 162,869174.755,0142,8690.001

Sells       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Clinigen  Peter George (ceo)18 Oct 162,200,00075016,500,0003,357,2422.927
Gear4music (Holdings) Andrew Wass (ceo)18 Oct 16400,0003001,200,0007,886,59339.127
Gear4music (Holdings) Dean Murray18 Oct 1675,000300225,000249,5201.238
Gear4music (Holdings)♥ Peter Armitage18 Oct 162,000,0003006,000,000829,4824.115
Jardine Lloyd Thompson♥  Richard Harvey18 Oct 1611,5691027118,81400.000
Martinco Ian Wilson (ceo)18 Oct 16150,000154.69232,0351,479,2005.846
Mondi David Hathorn (ceo)18 Oct 1665,0001618.521,052,03800.000
PHSC Stephen King (ce)13 Oct 16332,0491756,4483,115,00021.223
Share Richard Tolkien13 Oct 161,51026.37398312,1970.217
Travis Perkins♥ Robert Walker (ch)19 Oct 1610,3781402.5145,55165,8980.026

* placing/tender/open offer ♥ spouse/connected party