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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

S&U looking at better second half, suggests house broker

S&U is still in favour with house broker Peel Hunt, which sees 20% upside to its current 3,150p target price.

Commenting after a brief trading update from S&U ahead of its AGM, the broker said that factors that suppressed growth recently should ease as the year progresses.

Limited funding access has been resolved following the signing of a new £70m credit facility, increasing the headroom to £100mln.

Preparation for the new FCA Consumer Duty requirements in Advantage (motor finance) should also complete when the new rules are implemented in July, with S&U confident it is better prepared than its peers.

In Aspen, bridging finance, a decent business pipeline should convert into a resumption of growth in the second half of the year.

“At less than 10 times current year PE (earnings multiple) and with a dividend yield of 5%, we view the shares as attractively priced”, added the broker.

Shares were down 1.6% at 2,500p.

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