S&U PLC (LSE:SUS), the motor finance and specialist lender, has reported a sharp recovery in profitability for the year ended 5 February, with improving conditions across both its core divisions driving group pre-tax profit up 32% to £31.8 million.
Chairman Anthony Coombs said the company is "on the right track" and pointed to real opportunities for growth, provided political and regulatory stability is maintained, though he cautioned that the conflict in the Middle East is creating uncertainty around interest rates and consumer confidence.
Advantage, S&U's motor finance arm, saw pre-tax profit climb 42% to £23.4 million, driven by a 44% jump in new loan agreements to 18,279.
The division successfully concluded a Financial Conduct Authority (FCA) investigation that began in 2023, with the regulator signing off in April 2025, and customer repayment rates improved markedly, with live monthly repayments reaching 90.5% of amounts due, up from 85.6% the prior year.
The impairment charge fell sharply to £12.8 million from £33.2 million, reflecting the improved quality of the loan book.
Advantage also completed a £53 million sale of aged and written-off book debt, which the company said enhanced profitability and improved its capacity for customer service.
Aspen Bridging, S&U's property lending business, delivered record pre-tax profit of £8.8 million, up 22%, with net receivables growing 18% to £179.7 million despite a sluggish residential property market.
At group level, net receivables rose to £496.8 million from £435.8 million, while net assets reached a record £249 million.
Revenue fell to £107.4 million from £115.6 million, reflecting conditions in the prior year, but basic earnings per share rose to 195.2p from 147.4p.
The group said it is pursuing a refinancing exercise using securitised facilities, expected to complete in the second quarter, which it anticipates will deliver additional funding at improved rates.
S&U declared a final dividend of 45p per share, payable on 24 July 2026, taking the full-year total to £1.15 per share, up from £1.00 the prior year.