We aim to consistently grow our earnings and create attractive returns on the money we invest.
The group has four key strategic objectives to deliver our mission which are measured through a number of financial and non-financial key performance indicators (KPIs).
1 . Growing sustainable, customer-centric businesses that deliver attractive returns in non-standard markets
Apply exacting standards in allocating capital to organic and acquisition opportunities to invest in businesses that:
- Deliver a target return on assets for the group of approximately 10%. Attractive returns are available in the non‑standard market to those companies that have developed tailored business models and focus on delivering good customer outcomes.
- Are sustainable and maintain attractive levels of regulatory compliance at all times.
- Have good growth potential to deliver future earnings and dividends growth.
- Enjoy a strong market position, preferably a top‑three market position in each segment of the non‑standard market in order to develop the market in a responsible manner.
- Have sustainable management and cultural fit.
2. Acting responsibly and with integrity in all we do
- Operating our core business of lending to our customers in a responsible and sustainable manner, putting their needs at the heart of everything we do.
- Acting responsibly and sustainably in all our stakeholder relationships in order to:
- Create a working environment that is safe, inclusive and meritocratic;
- Treat our suppliers fairly; and
- Support our communities.
3. Maintaining a secure funding and capital structure
- Maintain borrowing facilities which, together with Vanquis Bank’s retail deposits programme, meet contractual maturities and fund growth over at least the next 12 months.
- Maintain a CET 1 ratio for the group of 25.5%, being the expected minimum regulatory requirement post the rights issue, together with a suitable level of headroom to ensure ongoing access to funding from the bank and debt capital markets. This broadly equates to funding new receivables at a target gearing ratio of 3.5 times compared with a bank covenant of 5.0 times and is equivalent to maintaining a borrowings to net tangible assets ratio of 2.8 times.
- Continue to diversify the group’s sources of funding.
4. Generating consistent and sustainable shareholder returns
- Deliver sustainable receivables growth of between 5% and 10% per annum, subject to economic conditions and maintaining the group’s minimum returns thresholds.
- Maintain a dividend cover of at least 1.4 times.
Our KPIs are helpful in assessing progress but are not exhaustive as management also takes account of a wide range of other measures in assessing performance.