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8 Aug 2012 07:00
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8 August 2012
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S&U PLC ("S&U" or "the company")
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Trading Update and Notice of Results
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S&U, Britain's foremost specialist Home Credit and Motor Finance provider, today issues a trading update for the six months to 31 July 2012. The Company is pleased to announce that it continues to trade in line with market expectations and intends to announce its interim results on the 26 September 2012.
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Home Credit
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LoansatHome4U, our Home Credit division, has maintained its recent progress despite the current recessionary climate. Customer numbers are up just under 3%, revenue growth has exceeded that for last year and, whilst impairment charges are higher than a good first half year in 2011, debt quality continues to be strong. Thus, on similar book debt to last year, credit availability is significantly greater and collections are up over 7%; both bode well for the second half of the year.
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New branches, at Rotherham and Swindon, are trading well and we continue to search for further acquisitions at sensible prices and to develop the range of products we provide to our much valued and loyal customers.
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Motor Finance
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Advantage Finance, our market leading Motor Finance business, continues its record development. Since the Company's IMS in May, Advantage has continued to make great progress in every sphere of its business - collections, gross receivables, transaction numbers, margins and impairment. As a result advances are up 23% on last year and impairment is down.
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Whilst retaining the loyalty of its traditional customer base, a wider range of customers are being attracted to Advantage through new and constantly evolving products. Advantage's industry leading under-writing system is currently being refined to even more sophisticated levels.
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Funding & Capital
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Although we continue to invest in the Advantage Motor Finance book, the Group's strong cash generation has seen gearing fall again to under 35% against 38% last year.
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Commenting on the Company outlook, Anthony Coombs, S&U Chairman said;
"Against the current economic backdrop, S&U's continuing progress is driven by our commitment and attention to the demands and needs of every customer. This defines S&U and underpins our confidence in the Company's future progress."
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For further information, please contact:
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S&U plc www.suplc.co.uk
Anthony Coombs, Chairman 0121 705 7777
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Arden Partners plc
Adrian Trimmings/Jamie Cameron 020 7614 5920
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Smithfield
Will Swan/Rebecca Whitehead 020 7360 4900
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