Last checked at 4 Aug 2017 07:00
4 August 2017
S&U plc
("S&U" or "the Group")
TRADING UPDATE AND NOTICE OF RESULTS
S&U plc, the hire purchase motor finance and specialist lender, today issues a trading update for the period from its AGM statement of the 18 May to 31 July 2017. It will announce half year results on 26 September 2017.
Trading
Trading at Advantage, our motor finance subsidiary, continues at record levels. New loan transactions are up by 20% and monthly collections are 27% higher than a year ago. Monthly collections hit a record £10m from nearly 49,000 customers in July and debt quality continues to be good.
Despite recent speculation as to the strength of the economy and its possible effect on the car finance market, Advantage has seen a steady increase in the number of quality applications it receives. Advantage is not involved in the PCP market which has recently come under public scrutiny. Advantage's average loan size is just £6,200 so should changes in the PCP market have a knock-on effect upon car residual values generally, this would have only a marginal effect upon S&U's business.
Aspen Bridging is proceeding cautiously and gradually establishing itself in the bridging market, and gaining traction in attracting good quality deals.
Funding
Committed medium term funding facilities have been increased to £95m since the end of the last financial year. This gives sufficient headroom for our anticipated growth and will be reviewed again as our businesses develop.
Commenting on the Group's trading and outlook, Anthony Coombs, S&U chairman said:
"S&U's performance and prospects remain healthy despite the current sentiment regarding the British consumer and motor finance sector. Our robust and well established under-writing processes, and impeccable 17 year track record at Advantage position us to trade well through any foreseeable macro-economic weakness, whilst allowing us to take advantage of the clear opportunities for steady and sustainable growth which we see at present."
For further information, please contact:
S&U plc www.suplc.co.uk
Anthony Coombs, Chairman 0121 705 7777
Peel Hunt LLP
Adrian Trimmings / Rishi Shah 020 7418 8900
Smithfield
Ged Brumby 020 3047 2527