Last checked at 5 Aug 2016 07:00
5th August 2016
S&U plc
("S&U"or "the Group")
HALF YEAR UPDATE AND NOTICE OF RESULTS
S&U plc issues its trading update for the period from its AGM statement of the 17th May to 31st July 2016, and will announce its half year results on 27th September 2016.
Trading
In contrast to the recent gyrations and doom saying in the stock and currency markets following June's Brexit vote, trading in the real world at our Advantage motor finance business continues as strong and consistent as ever. Customer applications are at a record high with live customer numbers up 39% on last year at over 38,000 whilst margins are being maintained.
As collections and repayments at Advantage scale new monthly highs, credit quality, whilst not at the record levels of last year, is nevertheless close to the historically high levels of the past two years and within our expectations. Advantage net receivables are now approaching £175m and have grown at over £1m per week in the first half of the financial year.
Funding
Our existing funding lines provide sufficient headroom for the growth we anticipate at Advantage over the next two years; as well as for new initiatives the Group may wish to undertake. For the medium term, 2018 and beyond, we anticipate extending our finance facilities during the second half of this financial year.
Commenting on the Group's trading and outlook, Anthony Coombs, S&U chairman said:
"A sound and consistent strategy, substantial investment and a dynamic and committed team both at Advantage and the Group, form the bedrock of S&U's progress.
"That is why, whatever the current economic uncertainties, we continue to regard the future with great confidence."
For further information, please contact:
S&U plc: www.suplc.co.uk
Anthony Coombs, Chairman 0121 705 7777
Financial Advisers, Sponsors and Brokers
Chris Hardie, Arden Partners 0207 614 5929
Media and Investor Relations
Will Swan, Smithfield 0207 360 4900