S & U Regulatory News (SUS)

17th February 2012

S&U plc

("S&U", "the Company" or "the Group")

YEAR END TRADING UPDATE

S&U, Britain's foremost home credit and motor finance provider, today issues a trading update for the period from its most recent IMS on 9th December 2011 up until the Company's Year End on 31st January 2012. The Company is happy to announce that it is trading well and that results will significantly exceed market expectations.

S&U will announce its results for the year ending 31st January 2012 on 29th March 2012.

Home Credit

Our Home Credit division has traded well over Christmas and January and continues to do so. Our loyal customers consistently appreciate the flexible, convenient, transparent, weekly service we offer to them. Consistent underwriting and the design of our loan products ensure that customers are comfortable with their repayments. As a result business is sustained over many years as relationships are built with our customers' families.

Customer numbers continue to grow and as a result we have opened two new branches at Swindon and in Glasgow. Good Home Credit is a local service which understands the needs and circumstances of our customers and the markets in which we operate.

The Board pays tribute to the continued dedication and attention to detail of all those who work in our Home Credit Division.

Since the year end we are pleased to announce the acquisition on 13th February 2012 of the home credit business of Norton Financial Services based in Rotherham; the acquired business had gross assets at date of acquisition of approximately £0.75m and consideration will be paid in cash. This acquisition will add to our customer base in the Yorkshire area and will be immediately earnings enhancing.

Motor Finance

For yet another year Advantage Finance has overcome the lull traditionally associated with the winter months in the used car market. Indeed the last two months of trading have been extremely buoyant and show substantial increases on last year. As Advantage continues to develop its underwriting expertise, its loan products appeal to an ever wider range of customers. It has ambitious targets for growth in 2012/13 which together with a very strong collections performance should produce yet another record year for the company. Again the Board pays tribute to the dedicated and expert team at Advantage and to those who lead them.

Funding and Treasury

Although the Group continues to grow, its vigorous underwriting and collections performance has seen the treasury position continue to strengthen. Since the end of last year borrowings have reduced by nearly £3m. Gearing has fallen to under 35% from 43% last year and 57% two years ago. Our existing facilities and excellent relationship with our bankers means that we have significant fire power to develop our existing businesses organically and to continue to make acquisitions to expand our business.

Dividend

The strength of the Group's current trading and its treasury position leads the Board to the view that it will be appropriate to approve the payment of a second interim dividend of 12p per ordinary share on the 23rd March to holders on the share register on the 2nd March. This is an increase at interim of 20% on last year. It is also the Company's intention, subject to any unforeseen circumstances, to recommend the payment of a final dividend on June 22nd 2012 of at least 16p per ordinary share for the year ending 31st January 2012.

Commenting on the Group trading and outlook, Anthony Coombs, Chairman of S&U plc said:

"Hard work and attention to the needs of our customers has led to a record year for the Group. This work will continue as we explore areas in which we can improve and expand our service to all our customers. As a result, we hope to build upon the returns we are making to our much valued shareholders."

For further information, please contact:

S&U plc www.suplc.co.uk 

Anthony Coombs, Chairman 0121 705 7777

Financial Advisers, Sponsors and Brokers

Adrian Trimmings / Jamie Cameron Arden Partners 0207 614 5917

Media and Investor Relations

Will Swan/ Rebecca Whitehead Smithfield 020 7 360 4900