AGM Statement & Trading Update

17th May 2016

S&U plc ("S&U" or "the Group")

AGM Statement and Trading Update

S&U, the motor finance and specialist lender, issues a trading update for the period from its full year results on 22nd March 2016 up to the 17th May 2016 prior to its AGM being held today.

Trading is very good. In fact, despite a generally more restrained recent economic outlook in the UK, Advantage Finance has recently seen an acceleration in its already impressive motor finance transactions growth rate. Customer numbers are now at an all-time high of 35,600, an increase of 3,000 since year-end and net receivables exceed £160m (£145m at the year-end). Debt quality remains excellent whilst collections, profit margins and average loan sizes are all on budget.

Funding

Our existing bank and finance facilities can comfortably accommodate our current rate of investment in Advantage of around £4m per month. Gearing has risen from 9% at year end to 19% now and our current projections suggest that it will not exceed 55% over the next 4 years as our business matures. Further funding will also be made available for suitable acquisitions and new initiatives as and when they are identified.

Commenting on S&U's trading and outlook, Anthony Coombs, S&U Chairman, said:

"Advantage's customary high standards and commitment to its burgeoning number of customers continue to reap their proper reward. A conservative and strong treasury position will allow both Advantage, and the S&U Group generally, scope for continued expansion in the exciting and rewarding times ahead."

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