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Demand for S & U's products remains ‘very robust’

Not for the first time, S & U chairman Anthony Coombs was questioning whether forecasts of a slowing economy are on the money
Exhaust pipes
The motor finance arm continues to fire on all cylinders

The number of active customers at S & U Plc’s (LON:SUS) motor finance arm continues to grow at a fair old lick.

Advantage Finance, S & U's specialist motor finance provider, has seen active customer numbers rise from 49,000 at the end of July to 53,000, while net customer receivables have risen above £240mln for the first time – up from nearly £227mln in July.

WATCH: S & U plc expecting car finance demand to remain strong

Monthly collections and overall credit quality remain good, S & U said. The impairment-to-revenue percentage has increased slightly to 23.4% on a rolling 12-months basis, which the company ascribed primarily to the overall portfolio product mix.

The relatively new bridging loan operation, Aspen Finance, is still in the pilot phase but has made significant progress.

The loan book has increased to £9mln from £2mln in July, while margins and loan-to-value ratios are within budget.

"Whatever the current political uncertainty, particularly over Brexit, and despite a forecast slowing economy, demand for S & U's products remains very robust. Our selective lending and continuous refinement of our under-writing underpin our debt quality and produce steady sustainable growth,” said S & U’s chairman, Anthony Coombs.

READ: S&U motors higher as car finance subsidiary continues to trade at record levels

"I am pleased to see this seemingly becoming more widely recognised within the investing community; we will continue our high standards of responsible lending and the excellent performance which results from this," he added.

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S & U Plc Timeline

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