S&U PLC (LSE:SUS) chairman Anthony Coombs talked with Proactive about the company’s continued growth momentum, particularly across its Advantage and Aspen divisions. Following a challenging regulatory period, Coombs reported a significant rebound in confidence, performance, and strategic clarity.
The company is forecasting its receivables to grow from £400 million to £600 million in the coming years. “There’s significant growth available in the Advantage business, but also in Aspen too; but particularly the Advantage business,” Coombs explained. He attributed this optimism to tightened credit scoring, improved affordability criteria, and an ongoing AI project aimed at operational efficiency.
Despite a sluggish property market impacting Aspen, the division exceeded budget with record sales and collections. Coombs acknowledged market headwinds—ranging from political uncertainty to interest rate volatility - but emphasised the resilience of S&U’s approach and the discipline underpinning its lending practices.
Investors have taken notice, with the share price up 20%, reflecting renewed interest in smaller-cap financials and confidence in S&U’s forward trajectory. Coombs noted, “They recognise the business has come out of a difficult period and is now regaining its va va voom.”
Looking ahead to 2026, Coombs acknowledged economic uncertainties but maintained a positive outlook, provided conditions remain reasonably stable. He reiterated the company’s focus on responsible lending, honed over its 88-year history.
Proactive: Anthony, very good to speak with you. Since December, the numbers have surprised on the upside again. What's actually driving the momentum on the ground at Advantage and Aspen?
Anthony Coombs: I think we're pleased with our progress. We think that that will be reflected in the annual results—obviously, they’ve got to be audited—but we think they’ll meet or at least probably beat expectations. The reason for that is that I think confidence has returned to the group—there’s no doubt about that.
It’s following two years of regulatory interference from the FCA and others. That’s now been put to bed. Confidence is returning to the business. We’re very happy with our affordability criteria and our credit scoring, which have both been updated. And as a result, the business is flowing—and so it ought to be, because they are wonderful businesses at Advantage and at Aspen.
At Aspen, it's a sluggish market—I mean the residential property market—but they've done very, very well indeed in the last year despite that. The amount of business they've done has exceeded budget. They've got record collections, record sales, but they’ve had to work very, very hard for it in a market where confidence is not quite as good as we would like it to be.
One, because of political reasons; second, because of uncertainty about interest rates; and third, about the level of price increases—or, in fact, decreases—in parts of the country in the residential housing market. So they’ve done very well despite that. Advantage is doing very well alongside a return of confidence. So I think those are the real reasons.
Advantage have taken the opportunity over the last two years to refine their credit controls and IT systems. They've got an AI project to improve efficiency, and all those things will have very good effects on the business in the long term. And that’s why I’m very confident in the futures.
Proactive: Anthony, the share price is up 20%, and you’ve talked about renewed interest in family-controlled businesses. What do you think investors are finally getting about S&U?
Anthony Coombs: I think investors, one, are more interested in small caps and financials in the financial sector—smaller mid-caps with a big-cap business—which obviously has helped. Secondly, I think they recognise what I’ve just said: that the business has come out of a difficult period and is now really resurging and regaining its va va voom.
Third, I think they recognise that that will be translated in the future into a much bigger and stronger business. I mean, for instance, we anticipate—with our receivables, which are about £400 million now—that they will probably get to £600 million in the next couple of years. And the reason for that is what I’ve just been saying: that there’s significant growth available in the Advantage business, but also in Aspen too—but particularly the Advantage business.
Proactive: I mean, Anthony, with those receivables over £400 million, as you say, and heading for £600 million—growth opportunities ahead—how do you balance pushing on with staying disciplined in a pretty uncertain UK economy?
Anthony Coombs: Very, very good question. We do so by adjusting our credit scoring and adjusting our affordability criteria—so far as Advantage, which I think is where it's mainly going to be felt. And they’ve certainly done that. So we're well under control in terms of quality.
One of the things we've learned from 88 years in business is that it's easy to lend money, but it's more difficult to get it back unless you actually lend in a responsible way. And we’ve always done that. We regard our customers as friends—as our partners—not as the opposition. And I think that will pay dividends.
Proactive: And how is 2026 looking so far, Anthony?
Anthony Coombs: 2026 is very good. I mean, it’s obviously a little bit more uncertain, as I said, on the Aspen side, because of this rather feeble and divided government we appear to have—despite a large parliamentary majority. And that obviously is affecting business confidence and consumer confidence a bit. And the downgrade from the Bank of England on our growth prospects in the country obviously doesn’t help.
So, yes, the background is uncertain. The businesses are very uncertain about where they’re going. And provided that the economy remains reasonably stable, we're confident about the future and achieving our targets.
Proactive: Anthony, I'm sure we're going to be chatting again very soon. Thank you very much for your time today.