S&U PLC (LSE:SUS) said it was cautiously optimistic about prospects after it endured a difficult six months navigating the well-publicised regulatory issues affecting the car finance industry.
Scrutiny from the Financial Conduct Authority directly impacted the company's Advantage Finance business, but it should also provide a "sustainable basis" for future growth, the company said.
S&U's other business, Aspen, which provides bridging loans, enjoyed a strong first half as it posted a 42% increase in profit to £3.4 million for the six months ended July 31.
Overall, the company weighed in with revenues of £60.4 million (up £5.1 million on the previous year), though earnings fell around 40% to £12.8 million.
Chairman Anthony Coombs told investors: "Half-year results for Advantage reflect a temporary adjustment to shifting market dynamics and evolving regulatory expectations.
"Nevertheless, the resulting internal reforms should provide greater certainty for renewed success. In the more dynamic bridging sector Aspen continues to perform strongly.
"Whether future policy developments by the government lead to a more growth-oriented approach will depend on ongoing dialogue with the industry.
"Appropriately, the last word should therefore go to Harold Wilson, Labour PM in the sixties. 'I'm an optimist,' he said. 'But I carry a raincoat.' Accordingly, we embrace the future with our usual cautious optimism."
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