S&U PLC (LON:SUS) said its trading remains “robust and profitable” despite the current lockdown and what it said was the UK government placing the economy into an “induced coma”.
In a trading update covering the period from December 9, 2020, to January 31, 2021, the motor financing specialist said customer demand in both its divisions “remains strong” with good collection quality. It is also planning for a “significant rebound to pre-[coronavirus] motor finance transaction levels as lockdown restrictions ease this year” as well a “substantial increase” in business for its Aspen property bridging arm.
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Over the period, S&U said transaction numbers for its motor finance segment had “held up well” and have continued to improve despite the closure of a number of car showrooms, with new deal transactions in the last two months reaching nearly 80% of the levels seen a year ago.
The company also said record application numbers were continuing, with new deal transactions for the year as a whole totalling around 15,600 with just under 63,000 customers and net receivables of around £247mln.
Meanwhile, S&U said its Aspen business has seen net receivables rise to £34mln from £29.6mln in the period while its deal pipeline has “more than doubled”.
The company also said its financial position was strengthened by a fall in borrowings to £99mln from £103mln, adding it is planning to pay a second interim dividend of 25p per share on March 12.
"Although the return to economic and general health in the UK will be uneven, the outlook is undoubtedly brightening. The proven strength and experience of S&U, exemplified by our loyal and dedicated staff, make me confident that we can grasp the tremendous opportunities economic revival will bring", S&U chairman Anthony Coombs said in a statement.