S&U PLC (LSE:SUS) declared a final dividend of 50p per share and said trading since the year-end has been encouraging, as it reported annual results for the year to 31 January.
The motor and property finance group confirmed that revenue swelled 12% to £115.4 million in the year, with net receivables at a best-ever £463 million and customer numbers also at record levels.
As trailed in a year-end statement, profit before tax was hit by cost-of-living pressures and regulation, coming in at £33.6 million compared to £41.4 million a year earlier. This was towards the better end of guidance in January.
The Advantage Motor Finance segment increased revenue 9% to £98.2 million, while profit came to £28.8 million versus £37.2 million last time as provisions were £8.2 million higher and the Financial Conduct Authority’s industry-wide inquiries added over £4 million of costs.
Aspen, the property bridging loan specialist, increased revenue 34% to £17.3 million and PBT to a record £4.8 million from £4.5 million last time, despite an increase in finance costs and the uncertainty surrounding the housing market.
The final dividend to be paid on 12 July makes for a total for the year of 120p, versus 133p the year before.
Chairman Anthony Coombs said: "Enthusiastic and supportive customers underpin S&U's long success and guarantee its future. Current trends, both at Advantage and Aspen, prove that S&U has an abundance of these and trading since our year-end is encouraging.”
But he warned that challenges remain. “As Marcus Aurelius, a second-century Roman Emperor and Stoic philosopher once said, ‘sometimes the art of living is more like wrestling than dancing’. Confident in our people, business philosophy and the markets we serve so well, we wrestle on.”