Shares in S&U PLC (LSE:SUS) rose 10% on Wednesday after the motor and property lender said trading in the first two months of its financial year had exceeded expectations.
Advantage, its motor finance division, has bounced back from a regulatory review, with lending volumes up 50% and customer payment performance at its best since last October.
Profits are now close to budget, helped by improved collections and fewer long-term arrears.
Aspen, which provides short-term property loans, delivered record quarterly profit, with new loan agreements up 46% and receivables growing 7% despite a sharp rise in repayments.
The company said demand remains strong even as the broader property market slows.
Group profits are tracking ahead of last year, and net debt has fallen by £59 million to £180 million, giving S&U financial room to grow.
Chairman Anthony Coombs said the group was now firmly back on a growth path following two years of retrenchment.
The shares rose 150.47p to 1,670.47p.