S&U PLC (LSE:SUS) reported making “steady, if more cautious, progress” in the four months since the start of August, with receivables rising to a new record.
The motor and property lender said caution was necessary as economic, tax and regulatory burdens continue to weigh on business, so it expects “cautious and sustainable growth” for the next year.
Net receivables stood at £446 million on 11 December, the company said, up from £417 million at the 31 July half-year stage and £404 million from last December.
This reflected a rise in net receivables at motor finance specialist Advantage of £14 million in the period to £327 million, while at property bridging lender Aspen net receivables gained £15 million in the period to £119 million.
Group borrowing increased to £209 million from £184 million at the half year and £180 million a year ago, which is against group committed facilities of £280 million.
At Advantage, transaction numbers were up, live collections were at 91% of due compared to 94% in the first half.
The new Consumer Credit Act has added further regulatory work, as has the Financial Conduct Authority’s special focus on borrowers in financial difficulty (BiFD) in non-prime motor finance, which has seen the company appoint a Skilled Person to advise Advantage on delivering the new requirements.
“This may be a lengthy and costly process, but it should prove valuable in providing assurance on our longstanding methods of serving our customers, and ensuring that our products continue to meet their differing needs,” the company said.
At bridging lender Aspen, repayments are 20% above budget and while increased interest costs have “put a break on recent profit growth”, the business was encouraged by the improved outlook for interest rates and bridging transactions.
The pipeline on new cases was reported to be at a record level, 30% above budget.
Anthony Coombs, chairman of the company, said: "It would be foolish to underestimate the obstacles all businesses face in times of feeble growth, pressures on the consumer, high taxation and inflation, and regulatory changes and political uncertainty.
“Fortunately, this cocktail of challenges will be met with S&U's long-standing experience, ingenuity, expertise, decency and sheer hard work, allowing the group to emerge as successful and as strong as ever.”