Q127 strong trading, driven by Advantage

S&U has issued a strong Q127 trading update highlighting the growth trajectory of the business and providing support for FY27 profits. According to the statement, group profitability for the period (6 February 2026 to 30 April 2026) is ahead of Q126 and management’s budget. That said, transaction growth at both Advantage and Aspen has slowed over the period, given lower consumer confidence and economic growth forecasts. Advantage, the car financing unit, posted improved net interest margins and repayment rates. Aspen, the property lender, posted higher receivables versus the same period in the prior year. We view S&U’s Q127 exit trajectory positively, but given the economic uncertainty in the UK from the continuing Iran war we believe it...