Shareholder engagement

The board believes that open and regular dialogue with investors provides the foundation for a long and trusted relationship.

The Chairman is responsible for ensuring that appropriate channels of communication are established between directors and shareholders and that all directors are aware of any issues and concerns that major shareholders may have.

Regular engagement provides investors with an opportunity to discuss particular areas of interest and raise any concerns. The group is eager to ensure that it understands shareholders’ views and that it is able to effectively communicate its strategy. The group engages effectively with shareholders through its regular communications, the AGM and other investor relations (IR) activity.

Key themes discussed with shareholders in 2016


  • Potential acquisition activity.
  • Rationale for holding a banking licence.
  • Preparing for a more demanding FCA regulatory regime.

Vanquis Bank

  • Reasons for the shortfall in new account bookings in Q1.
  • Update on the initiatives to augment medium-term growth.
  • Impact of remedies from the FCA credit card review.
  • Rationale behind the loans pilot and transfer of guarantor loans from CCD.
  • Resilience of the business in an economic downturn.

Provident Home credit

  • Factors behind the growth in receivables.
  • Potential for further efficiency gains through deployment of technology.
  • Reasons for the delay in receiving FCA authorisation.
  • Potential impact of the FCA’s review of high-cost short-term credit in 2017.

Satsuma Loans

  • Reasons for the slower development of the business since inception.
  • Development of the customer journey and further lending capabilities.
  • Competitive environment in online short-term credit and the impact on business volumes.
  • Impact of regulation on the high-cost short-term credit market..


  • Reasons for the moderation in the risk-adjusted margin.
  • Development of product proposition and distribution channels.
  • Potential impact of an economic downturn post Brexit.

IR programme

The group has a comprehensive IR programme through which the Chief Executive, Finance Director and Head of IR engage regularly with the company’s largest shareholders on a one-to-one basis to discuss strategic and other issues as well as to give presentations on the group’s results.

  • The annual report – this is the most significant communication tool, ensuring that investors are kept fully informed regarding developments in the group. The group continually strives to produce a clear and transparent annual report which provides shareholders with a complete and balanced picture of the group;
  • Our corporate website – provides investors with timely information on the group’s performance as well as details of the group’s corporate responsibility (CR) activities. The website was refreshed in 2015 to improve its look and feel and to ensure that the website was fully accessible from either a PC, tablet or smartphone without the need for a separate mobile app;
  • Investor days – inviting institutional shareholders and sell-side analysts to an on-site facility or an external location to provide them with a more detailed insight into the group. A Capital Markets Day has been scheduled for 4 April 2017 to provide further insight into the group’s growth initiatives including the expansion of Vanquis Bank’s credit card distribution and the new wider loans proposition, the ongoing development of Satsuma’s digital capability, the proposed enhancement of the home credit operating model and the ongoing product developments in Moneybarn;
  • Investor/analyst meetings – the group takes a proactive approach by inviting investors and sell-side analysts to meet with divisional senior management and to visit operational facilities;
  • US and European roadshow programmes – allows overseas investors better access to management, enabling them to receive the same access to information as investors in the UK. Usually attended by the Chief Executive, the Finance Director and the Head of IR;
  • Attending broker conferences – management regularly attend and present at various conferences hosted by brokers to ensure that a wide variety of shareholders, including those from different geographies, have access to management;
  • An annual CR report – a stand alone report clearly demonstrating the significant importance placed on corporate responsibilities within the group;
  • Shareholder correspondence – the group is committed to responding to shareholders, regardless of the size of their holding, within two working days of receipt of correspondence; and
  • An annual perception audit – designed to obtain formal independent feedback from investors and sell-side analysts. This enables management to consider and respond to any concerns in the investment community.