S & U Plc (LON:SUS), the motor finance and specialist lender, has not been taking its foot off the pedal this year.
According to an upbeat trading statement issued ahead of the annual general meeting (AGM) on Tuesday, “trading is very good”.
It's a case of “slow-down? What slow-down?” for the Advantage Finance division, which has seen an acceleration in its already impressive motor finance transactions growth rate, S & U said.
Customer numbers have hit an all-time high of 35,600, up 3,000 since the end of the year, while net receivables now exceed £160mln, versus £145mln at the year-end.
Debt quality remains excellent while collections, profit margins and average loan sizes are all on budget.
S & U said its existing bank and finance facilities are more than ample to drive its current rate of investment in Advantage of around £4mln per month.
Gearing has risen from 9% at the end of the year to 19% and is set to continue to rise in this low interest environment, but the company said its current projections are that it will not exceed 55% over the next four years as its business matures.
Further funding is also on tap should suitable acquisitions or business initiatives present themselves.
“Advantage’s customary high standards and commitment to its burgeoning number of customers continue to reap their proper reward,” chairman Anthony Coombs was set to tell shareholders at the AGM.
“A conservative and strong treasury position will allow both Advantage, and the S&U Group generally, scope for continued expansion in the exciting and rewarding times ahead,” Coombs's statement said.