Shares in S & U PLC (LSE:SUS) rose 11% after the vehicle and property finance specialist provided an upbeat assessment of prospects.
In a trading statement, the group said it was performing ahead of expectations, but acknowledged political uncertainty coupled with the cost of living crisis could apply the brakes.
“Economic deterioration may exert future pressure on operating expenses, impairment and finance costs but the top line performance is tracking ahead of our estimates and the good momentum highlights the attractive valuation of the shares,” said broker Peel Hunt in a note issued earlier.
It is sticking with its ‘buy’ advice and reckons the shares are worth £33 each. Even after Wednesday’s movement that’s still a £10, or 43% premium to S & U’s current valuation.
Earlier, investors were told receivables had increased by £30mln to £370mln in the last two months, while debt quality remained ‘strong’.