S&U PLC’s (LON:SUS) chairman Anthony Coombs has highlighted a “very encouraging” rebound in the company’s trading following the UK's pandemic lockdown and there were “significant opportunities” to attract new customers and increase market share going forward.
In its results for the six months ended July 31, the specialist motor finance and bridging lender reported a slight reduction in revenue to £42.8mln from £44.2mln, while pre-tax profits stood at £6.3mln from £17.1mln mostly due to forward-looking loan loss provision charges. The company also declared an interim dividend of 22p per share.
WATCH: S & U PLC's Anthony Coombs optimistic and says they're seeing a gradual recovery in business
S&U also said its borrowing has been reduced in the half year to £108mln from £125mln last year.
Meanwhile, the company said customer numbers for its Advantage Finance business have remained stable at 63,500 from 62,000 last year despite the lockdown during the coronavirus pandemic, while the firm added that the market for its Aspen Bridging division improved in July and August with increases in both new loan volumes and repayments.
However, S&U also reported that new loan volumes in Advantage had reduced 35% in the first half due to the lockdown period, while Aspen had also been effected with net receivables falling to £18.5mln from £21mln in the six months.
Looking ahead, Coombs said while “political, health and economic headwinds remain for the UK”, in the immediate future the company’s “financial strength, sound strategy and dedicated people will sustain the group”.
“At the same time, we see great opportunities, using our digital expertise, to attract new customers through new partner channels and to increase market share and continue sustainable growth. We relish the challenge", the chairman added.