S&U PLC (LSE:SUS) reported increased first-half revenue and profit and said it is “trading well” despite flagging continued business and economic headwinds.
The specialist motor and property financier declared a 35p first interim dividend for the half-year to 31 July 2023, flat on the same period last year, to be paid in December, with expected further payments to shareholders in March and July.
Profit before tax (PBT) rose 2.4% to £21.4 million on revenues up 11.9% to £55.3 million, with both sides of the business making headway.
Advantage, the company's motor finance arm, saw PBT inch up to £19.1 million from £19.0 million, while Aspen Bridging, which focuses on the UK residential property market, upped it to £2.4 million from £2.0 million.
The rises in profit were despite the group reporting an additional £4.2 million of interest as a result of the Bank of England's rate rises, with net borrowings standing at £184 million, compared to £154 million a year earlier.
Group receivables rose to a company record of £417 million from £370 million at the end of the last financial year, with a net £303 million for Advantage and £104.3 million for Aspen.
Chairman Anthony Coombs noted that despite cost-of-living and regulatory pressures, credit quality and collections “remain robust”.
He said: "S&U continues to trade well and despite current economic challenges and environment, S&U's track record gives cause for cautious optimism.
“With sensible economic management, the potential for the motor and property markets in which we operate remains significant. As always, we continue to lay the foundations - financial, consumer, operational and marketing - to sustainably take advantage of them."
To that end, available committed funding facilities across the group were increased by £70 million to £280 million.