Year End Trading Update

13th February 2015

S&U plc

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

YEAR END TRADING UPDATE

S&U, Britain's foremost specialist motor finance and home credit provider today issues its trading update for the period from its Trading Statement on 11th December 2014 up to the Company's year-end on 31st January 2015. S&U is again pleased to announce that it continues to trade in line with market expectations and that it will announce its final results on 24th March 2015.

Motor Finance

Advantage Finance, our motor finance subsidiary continues to trade at record levels. Despite evidence of further competition in the specialist motor finance market, Advantage's sales and transactions remain robust and advances for the year are 48% up on last year. Credit quality is at its best ever level and live customer numbers have increased by over a third in comparison to last year. Its under-writing model is being continually updated to ensure debt quality is maintained in a growing market. We therefore anticipate another record year.

Home Credit

Substantial progress continues to be made in our home credit division, Loansathome4u. Turnover, customer numbers and our loyal representative force have all increased by just under 10% on last year. The fact that our weekly collections are up by 12% and, most important, our credit availability is ahead by no less than 20% on a year ago, is evidence of both responsible lending and our commitment to treating our customers fairly.

The current year has begun well. In addition, the significant steps we have taken in strengthening our compliance function gives us great confidence as we approach the Financial Conduct Authority's ("FCA") authorisation process later this year.

Funding and Treasury

The quality of the Group's debt both in motor finance and home credit has been reflected in increased trading and in strong cash generation. As a result Group gearing has fallen slightly to 67% and our current facilities provide sufficient headroom for anticipated growth this year.

However, longer term our prudent policy of diversifying funding sources will see the introduction of further new facilities and the Board will be considering an application for Deposit Taking status with the Prudential Regulation Authority ("PRA") and FCA in the first half of this year. These increased facilities will accommodate the expansion we anticipate in both our businesses over the next few years.

Dividend

The strength of the Group's current trading and profitability allows the Board to approve the payment of a second interim dividend of 19p per ordinary share (2014: 16p) on 10th April 2015 to holders on the share register on 13th March 2015. This means that first and second interim dividends this year will represent 36p against 30p last year - an increase of 20%.

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

"As real incomes at last begin to match improving consumer confidence, we see significant opportunities for sensible and responsible growth both in our motor finance and home credit divisions. On the assumption that the British political environment remains stable, and that regulation is therefore consistent and proportionate, we see every reason to believe that our commitment to treating our customers fairly across the Group and to giving them the best standards of service, will continue to reap appropriate rewards."

For further information, please contact:

S&U plc www.suplc.co.uk 

Anthony Coombs, Chairman 0121 705 7777

Broker & Financial Advisor

Chris Hardie Arden Partners 0207 614 5917

Media and Investor Relations

Will Swan Smithfield 0207 360 4900