www.suplc.co.uk
S&U PLC is the United Kingdom's foremost niche consumer and motor finance provider.
Based in Solihull in the West Midlands it has operations throughout the United Kingdom from Edinburgh to London to Grimsby to Falmouth in Cornwall. It provides work for nearly 800 people and is proud to provide 140,000 people throughout the country with their consumer and motor finance requirements.
S & U 's motto is to provide Britain's "foremost consumer and motor finance service for its customers". We continually strive to achieve that ideal and the results are benefiting our customers, our employees and of course our shareholders.
S & U says it is optimistic for future as reveals "stellar" performance in motor finance division
Niche money lender S&U (LON:SUS) says it is optimistic about future growth after releasing interims, which saw revenue up 5 percent to £24.8million.
Despite the "faltering" UK economic recovery, the firm reported growth in both its home credit and motor finance divisions, with record advances here - giving it a firm platform for the future.
It also said it proposes a first interim dividend of 11 pence per share (2010: 10 pence) which will be paid on November 11, and intends to make further dividend payments in both March and June next year.
The company said that pre-tax profit increased to £6.4 million compared to £5.4 million in the same period last year.
Operationally, in the home credit side, the company said it saw 4 per cent growth in revenue compared to the H1 2010 and the credit quality had improved with 6 percent lower impairment charge in the first six months compared with 2010.
Its new branch in Derby has made a promising start, it added.
Meanwhile, it saw record advances in the motor finance side of the business with revenue up 7 per cent compared to last year, with highest ever loan transactions, collections and pre-tax profits.
It said the quality of the debt was "excellent" with a record 84 per cent of live receivables up to date as at July 31 compared to 81 percent last year.
Chairman Anthony Coombs said: "These encouraging results reflect the excellent relationships we have with a growing number of customers in both our Home Credit and Motor Finance businesses.
"They also demonstrate how much our customers value our service, particularly in times of continuing economic uncertainty."
"Earnings per share are 39.9p against 33.2p for the six month period last year. Group revenues are up 5.1 percent on last year to £24.8mln (2010: £23.6mln). After allowing for the accelerated first half remuneration costs last year, profit before tax increased by 2 percent in our more mature Home Credit Division and increased by a stellar 26 percent in our faster growing Advantage Motor Finance business."
Coombs added that while the firm's overall customer numbers continued to grow at a sensible and sustainable pace, the faltering UK recovery demanded that the firm continued to focus upon the quality of its debt, its collections and consequent cash flow.
"Collections are 5 percent ahead of last year on capital receivables up by 3 percent. Again, our cash position continues to strengthen. Group gearing is now 38 percent against 43 percent at year end and 51 percent a year ago," he said.
