LONDON (Alliance News) - S&U PLC said on Tuesday revenue and profit rose strongly in its recently ended financial year, supported but good demand for the products of its Advantage unit.
The motor finance firm said revenue rose 32% to GBP79.8 million for the year to January 31 from GBP60.5 million the year before, as pretax profit rose 20% to GBP30.2 million from GBP26.9 million.
The performance reflected both a 26% increase in customer numbers at Advantage, its motor finance business, and a "small but growing contribution" from Aspen Bridging, its new property bridging finance operation.
Despite a recently reported slow-down in the UK new-car market, demand for Advantage's products remained strong. New agreements at Advantage reached a "record" 24,500, up over 22% on the year before.
The company proposed a final dividend of 45 pence, up from 39p the year before, bringing its total payout for the year to 105p, up 15% year-on-year
"Whatever the wider political or economic headwinds, the markets in which we operate remain strong. Recent data from the Finance & Leasing Association showed used-car sales increased by 6% in number and 12% in value in 2017, whilst the UK property market remains robust. This combination of healthy market conditions, a strong demand for our products and our focus on quality, lead us to look ahead with real confidence," the company said.
Shares in S&U were up 0.6% at 2,355.00 pence on Tuesday.