The 4 October results confirmed steady growth, controlled risk and delivery in line with expectations. Double-digit underlying revenue and earnings growth was generated from stable customer numbers, and achieved more efficiently with fewer agents. The Provident Financial opportunity is now embedded and management can focus on new growth initiatives. We reviewed MCL’s focus on quality in our 19 July 2018 note, Quality Street, highlighting how conservatism runs throughout MCL’s lending, accounting, agents, customer selection and new product development. Our absolute valuation range is now 179p to 223p.
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