Proactiveinvestors United Kingdom S & U Plc

S & U making good progress across motor and home credit divisions

Thu, 24 May 2012 08:54:00 +0100

Niche money lender S & U (LON:SUS) said its home credit division Loansathome4U continues to trade well and its motor finance business Advantage is also making very good progress.

The group issued a trading statement covering the period from February 1 to May 23 2012 ahead of today’s AGM, saying that customer numbers for Loansathome4U are up just under 4 per cent on last year.

Collections are up over 7 per cent on last year and credit availability is now at a record level.

S & U’s new acquisition Norton Finance has been successfully integrated into the business and the group continues to pursue acquisitions of similar quality.

In a slightly more competitive market, Advantage continues its outstanding progress, S & U said, with transactions, revenues and collections all above budget and productivity per employee at a record level.

Gross receivables are 11 per cent higher than last year and they are of better quality than ever.

The group’s treasury position remains strong as borrowings have fallen to £18.2 million from £20.2 million in late May 2011.

Home Credit remains strongly cash generative whilst, as anticipated, further funds are being invested in the continued growth of the Advantage Motor Finance book.

Chairman Anthony Coombs said: “Whilst current trends for the group's trading are encouraging, the wider macroeconomic environment is not. Hence our optimism is tempered with caution. Nevertheless, continuing to work closely with every home credit and motor finance customer, we are confident of the year ahead.”

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S & U reports strong full-year performance, looks ahead with confidence

Thu, 29 Mar 2012 16:20:00 +0100

The money lender has reported another strong performance. While he is pleased, chairman Anthony Coombs won’t shrug off his cautious approach to running and growing the business particularly in the current economy.

S & U reports another strong full-year performance

Thu, 29 Mar 2012 07:35:00 +0100

Niche money lender S & U (LON:SUS) has reported another strong full-year performance, with revenue up 8 per cent in the twelve months to January 31 and pre-tax profits up 24 per cent.

The home credit and motor finance group made a pre-tax profit of £12.2 million, up from £9.9 million a year earlier, while revenue rose to £51.9 million from £48.0 million.

It has decided to increase the final dividend by 2 pence to 18 pence, making for a total dividend of 41 pence, up 14 per cent on the previous year.

Chairman Anthony Coombs said: "I am pleased to announce an excellent year for S&U. In challenging times for many, every customer at S&U does count and it is this unique relationship which makes our continued growth both responsible and sustainable. We look to our future with quiet confidence."

The Home Credit Division, trading as Loansathome4U, had a very successful year, with pre-tax profits rising 12 per cent to £6.3 million.

Debt quality has continued to improve, and this is reflected in an increase in revenue of over 7 per cent on last year, and in lower bad debt, the company said.

S & U has opened another two Home Credit branches this year, in Glasgow and Swindon. Following the acquisition of the Home Credit business of Norton Finance recently, it plans to open another branch in Rotherham.

Its Grimsby-based Motor Finance Division, trading as Advantage Finance, has produced record profits for the twelfth consecutive year. Pre-tax profits rose 40 per cent from a year earlier to £5.9 million and revenues were up 11 per cent.

Applications continue at around 13,000 per month, of which Advantage writes around 400.

Debt quality has never been better, provisioning charges have fallen on last year and collections now approach £2.5 million per month, S & U said.

“Predictions for growth, consumer spending and the labour market remain subdued for the year to come and the recent fall in High Street Sales reflects this. However, the group's trading remains encouraging and, together with the long term market opportunities mentioned above…, we face the future with confidence,” chairman Coombs added.

RNS press release - Final Results

Thu, 29 Mar 2012 07:00:00 +0100

S&U shares rise on strong trading update; dividend hiked by 20 per cent

Fri, 17 Feb 2012 11:40:00 +0000

Shares in S&U soared after the home and car credit specialist said this morning that it had traded well over the Christmas period and that its financial results will “significantly exceed expectations”.

RNS press release - Trading Statement

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S&U shrugs off downturn as customers rise - Update

Fri, 09 Dec 2011 15:24:00 +0000

- adds broker comment

S&U (LON:SUS) is showing good strength in the downturn says broker Arden after a trading update today from the credit provider.

Management is concentrating on tighter controls given the difficult economic environment but home credit still continues to grow modestly, with motor finance growing faster and at good payment rates.

The broker expects profits for the full year to January to rise from £9.9 million to £10.8 million, which drops the earnings multiple from 10 to nine at 598p.

The shares also yield a prospective 6.4% and the good trading strength coupled with the yield bode well for the share price suggests Arden, which has a buy rating.

In its trading update, S&U said current trading is strong despite the problems affecting the wider economy.

Both its home credit arm Loansathome4u and motor finance business Advantage saw customer numbers rise in the four months to December 8.

In home credit, customers rose by just under 2% compared to this time last year. Debt quality improved, the firm said, with the group also confident about the Christmas season.

In motor finance, customer numbers rose by 12% on last year and despite some lenders returning to the market, sales growth is strong and margins have improved, S&U said.

It added that Advantage's debt quality is at its highest level ever, while monthly customer repayments now average a regular £2.5 million and impairment rates continue to fall.

Overall, group borrowing fell in the quarter with good collections and cost control enabling it to repay a medium term loan ahead of schedule.

Chairman Anthony Coombs said: "Whilst it would be unwise in the current economic climate to take Christmas sales and collections for granted, current trading is strong and underpinned by a solid financial base. Expectations and group morale are high."

Loansathome4u provides home credit via 500 agents across the UK, while Advantage employs over 70 people and has provided motor finance for over 40,000 customers across the country.

Anthony Coombs, Chairman of S & U Plc, talks to Proactive Investors

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Anthony Coombs, Chairman of S & U Plc, talks about being the quintessential relationship lender in home loans & motor finance, responsible lending, a platform for expansion, sustainable dividend payments, & a financial position that is as strong as it has ever been over the last twenty five years.

S&U upbeat as customer numbers rise

Fri, 09 Dec 2011 07:31:00 +0000

Credit provider S&U (LON:SUS) said today current trading is strong despite the problems affecting the wider economy.

Both its home credit arm Loansathome4u and motor finance business Advantage saw customer numbers rise in the four months to December 8.

In home credit, customers rose by just under 2% compared to this time last year. Debt quality also continues to improve, the firm said, with the group confident about the Christmas season.

In motor finance, customer numbers are over 12% up on last year and despite some lenders returning to the market, sales growth is strong and margins have improved S&U said.

It added that Advantage's debt quality is at its highest level ever, while monthly customer repayments now average a regular £2.5 million and impairment rates continue to fall.

Overall, group borrowing fell in the quarter with good collections and cost control enabling it to repay a medium term loan ahead of schedule.

Chairman Anthony Coombs, said: "Whilst it would be unwise in the current economic climate to take Christmas sales and collections for granted, current trading is strong and underpinned by a solid financial base. Expectations and group morale are high."

Loansathome4u provides home credit via 500 agents across the UK, while Advantage employs over 70 people and has provided motor finance for over 40,000 customers across the country.

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S&U seeks expansion through organic growth and acquisitions

Thu, 22 Sep 2011 12:30:00 +0100

In an interview with Proactive Investors, following this morning's interim results, chairman Anthony Coombs revealed that the firm had been looking for acquisition possibilities in the last six months and that the search was continuing.