S & U PLC (LSE:SUS) said the last four months have seen the specialist motor finance and property bridging lender make further steady progress.
Ahead of its annual general meeting (AGM) today, the company said group profit since the beginning of February has been ahead of budget in its Advantage Finance motor finance division and Aspen Bridging, its property bridging loans arm.
Advantage's performance during the period is reflected in its income, gross margin, cost control and profitability, which have all beaten budget, the company said.
At Aspen, current net receivables now stand at £72mln against £64mln at the end of January. Repayment quality continues to be good.
For S&U as a whole, current net receivables stand at £340mln, up from £295mln a year earlier, and are also above budget. Credit quality remains very good, the company said in its AGM statement.
Strong cash generation has allowed S&U's loan book growth to be accommodated within current borrowings of £125mln, well within the group’s medium-term facilities of £180mln.
As ever with S&U, prudence is the watchword and although demand for both housing and motor vehicles remains strong, while unemployment rates are at their lowest levels since 1975, the lender cautioned that rising prices, particularly for energy and interest rates, may persist, making it as important as ever that S&U continues to focus on the quality of its loan books and its service to customers.
"In the light of the war in Ukraine and its effect on the world economy, we are all learning the value, both militarily and economically, of the old Roman saying ‘If you would have peace, prepare for war’. In febrile and volatile times at home and abroad, S&U's experienced, prudent but positive approach will continue, both literally and metaphorically, to pay dividends," said S&U’s chair, Anthony Coombs.