Trading Update

 12 February 2016

S&U plc

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

YEAR END TRADING UPDATE

S&U plc, the motor finance and specialist lender, today issues a trading update for the period from its Trading Statement of 10 December 2015 to the Company's year-end on 31 January 2016.

S&U is pleased to announce that current trading remains strong and in line with market expectations; it will announce its final results on 22 March 2016.

Current Trading

Advantage Finance our motor finance business continues to produce record results. Live customer numbers are now around 32,500 up over 32% on the same time last year and budgeted new transactions for the year were exceeded comfortably. This reflects the investment during the past financial year of £27m into developing our motor finance business.

New refinements to our already highly sophisticated underwriting systems have allowed Advantage to deepen our understanding of our traditional customers. This leads to even more opportunities for the higher margin, high quality business which has been Advantage's hallmark. As a result an expanded book of excellent quality is reflected in monthly collections which are now approaching £7m.

Acquisitions

We continue to examine potential acquisition and start up opportunities in a rigorous and painstaking way and have added to our development team. The recent reverses in stock market values have confirmed our impression of unrealistic pricing last year and may lead to better value in the coming months. Our search continues, but against a background of continuing investment in Advantage, and our determination to maintain shareholder returns in areas where we have experience and expertise.

Funding and Treasury

Notwithstanding the payment to shareholders of £14.9m by way of a special dividend last November, the financial position of the Group remains very strong. Net borrowings of just £12m are covered by committed facilities of £70m leaving significant headroom for the right acquisition and organic growth.

Dividend

The strength of current trading, future prospects and the Group's robust treasury position justifies the Board's approval of a second interim dividend of 23p per ordinary share (2015:19p) on Friday 18th March 2016 to holders on the share register on the 26th February 2016. The first and second dividends paid this year will therefore total 43p against 36p last year an increase of 19%.

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

"Although the slight rise in real incomes in Britain over the past year has led to greater consumer confidence, particularly in the car market, current economic uncertainties will place a premium on those finance companies possessing the best underwriting systems and highest debt quality.

Coupled with a more stable political and regulatory environment, that will continue to reward the business methods and customer focus for which Advantage Finance is rightly admired".

For further information, please contact: