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S&U eyes future with confidence

Last updated: 08:29 22 Feb 2024 GMT, First published: 15:06 10 Feb 2021 GMT

Snapshot

  • S&U chairman expects business to return to growth trail after less than vintage year
  • Spotlight on S&U: Anthony Coombs explains why it likes "people on the way up"
  • S&U looking at better second half, suggests house broker
  • S&U PLC navigates economic and regulatory challenges, eyes future growth
S&U

About the company

S&U PLC is the UK's foremost specialist motor finance & bridging lender.

The company has provided credit services since 1938 and has been listed on the London Stock Exchange since 1961.

Since this time, it has delivered consistent and sustainable profit growth and its seasoned management team has an unparalleled understanding of how to deliver value to all of its stakeholders, from customers through to investors.

How it is doing

09 Feb 2024

S&U PLC (LSE:SUS)'s chairman, Anthony Coombs, admitted 2023/24 had not been a "vintage year" for the motor and property finance group, though he hailed its resilience in the face of challenging economic conditions and said he expects the business to return to "robust profit growth".

Confronted with the cost-of-living crisis, weak consumer confidence and high interest rates, the group said pretax profit would be 10-15% below analysts' consensus at around £38 million for the 12 months ending 31 January 2024.

Investors were also told the group plans to pay a second interim dividend of 35p per share.

Despite these challenges, S&U said it continues to invest in both its key businesses, with £15 million going into them during the period under review.

12 Dec 2023

S&U PLC (LSE:SUS) reported making “steady, if more cautious, progress” in the four months since the start of August, with receivables rising to a new record.

The motor and property lender said caution was necessary as economic, tax and regulatory burdens continue to weigh on business, so it expects “cautious and sustainable growth” for the next year.

03 Oct 2023

S&U PLC (LSE:SUS) reported increased first-half revenue and profit and said it is “trading well” despite flagging continued business and economic headwinds.

The specialist motor and property financier declared a 35p first interim dividend for the half-year to 31 July 2023, flat on the same period last year, to be paid in December, with expected further payments to shareholders in March and July.

Insight: Spotlight on S&U: Anthony Coombs explains why it likes "people on the way up"

09 Jun 2023

A sub-par credit score is a key issue for many, whether it be when applying for a new bank card, a simple loan or even a mortgage.

When it comes to applying for finance for a car, the same issues apply, even in the second-hand market, Anthony Coombs explains.

What the brokers say

25 May 2023

S&U is still in favour with house broker Peel Hunt, which sees 20% upside to its current 3,150p target price.

Commenting after a brief trading update from S&U ahead of its AGM, the broker said that factors that suppressed growth recently should ease as the year progresses.

Limited funding access has been resolved following the signing of a new £70m credit facility, increasing the headroom to £100mln.

What management says

22 Feb 2024

S&U PLC (LSE:SUS) chairman Anthony Coombs delved into the company's trading statement for the 12 months ended 31 January 2024 in an interview with Proactive's Stephen Gunnion.

Despite a challenging year due to a number of headwinds facing the sector, the motor and property finance group remained resilient, with improving prospects.

Coombs attributed the past year to the cost of living increase and heightened regulatory activities by the Financial Conduct Authority, aimed at protecting customers under economic pressure. This regulatory environment created headwinds for S&U, slightly impacting its results. Consequently, pre-tax profits are expected to be 10 to 15% below analysts' consensus. However, Coombs said the flow of new business into both of S&U's sectors—motor and property finance—is robust, with the company facing challenges in collections due to regulatory scrutiny.

S&U PLC navigates economic and regulatory challenges, eyes future growth

S&U PLC (LSE:SUS) chairman Anthony Coombs delved into the company's trading statement for the 12 months ended 31 January 2024 in an interview with Proactive's Stephen Gunnion. Despite a challenging year due to a number of headwinds facing the sector, the motor and property finance group...

3 weeks, 5 days ago