(Alliance News) - S&U PLC on Tuesday reported a double-digit yearly revenue climb in revenue, but a profit drop, as it grappled with "a combination of prolonged and raised interest rates" as well as "a flurry of regulatory activity".
The West Midlands-based lender, focused on motor finance and property bridging, said revenue increased 12% to GBP115.4 million for the year ended January 31, from the GBP102.7 million the year prior.
S&U's pretax profit fell 19% to GBP33.6 million from GBP41.4 million from the previous year.
Hurting profit, administrative expenses rose 22% to GBP19.8 million from GBP16.3 million. Finance costs doubled to GBP15.1 million from GBP7.5 million. It reported an impairment charge of GBP24.2 million, rising 74% from GBP13.9 million.
S&U trimmed its final dividend by 17% to 50.00 pence per share from 60.00. The total dividend for the year amounted to 120.0p, a 9.8% cut from 133.00p.
Customer numbers at both S&U's motor finance provider Advantage and its property financier Aspen were reported to be at a "record" high, while net receivables for S&U reached a "best ever" GBP462.9 million, an increase of 10% from the previous year.
Annual revenue for Advantage increased by 9.0% to GBP98.2 million this year, whilst Aspen's revenue increased by 34% to GBP17.3 million.
S&U said it was a year which saw "times of change and contrasting fortune". It noted it was a period of lofty interest rates, economic challenge in the UK, and a "flurry of regulatory activity".
S&U Chair Anthony Coombs said: "Enthusiastic and supportive customers underpin S&U's long success and guarantee its future. Current trends, both at Advantage and Aspen, prove that S&U has an abundance of these and trading since our year-end is encouraging. Of course, challenges remain.
"As Marcus Aurelius, a second century Roman emperor and stoic philosopher, once said: 'sometimes the art of living is more like wrestling than dancing'. Confident in our people, business philosophy and the markets we serve so well, we wrestle on."
S&U shares rose 1.3% to 1,900.00 pence each in London on Tuesday afternoon.
By Emily Parsons, Alliance News reporter
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