LONDON (Alliance News) - Car finance lender S&U PLC said Friday it is confident of "sustainable future growth" as the UK used car market remains "strong".
In the period February 1 to May 17, S&U's motor finance business, Advantage Finance, reached record levels of monthly loan application with "over" 80,000 per month. Of which about 25% are accepted and about 10% of acceptances are transacted.
Advantage Finance has seen its net receivables grow 21% to GBP258 million from the year before, a total of 56,000 customers. April's monthly collections increased by 22% to GBP11.4 million compared to the year before.
Its bridging finance pilot, Aspen Bridging, net receivables book increased to GBP14 million from GBP11 million at year end.
S&U increased its borrowings by GBP8.5 million in the quarter to GBP113.5 million and arranged GBP20 million additional banking facilities taking its total committed facilities to GBP135 million.
Chairman Anthony Coombs said: "Despite a slowing UK economy, the value used car and residential markets in which we operate remain strong and resilient. Our continuing focus on customer selection and excellent service gives us great confidence for sustainable future growth."
Shares in S&U were down 2.1% Friday morning at 2,702.50 pence each.