Trading Statement

RNS Number : 2248O

S & U PLC

05 August 2014

 



S&U Trading Statement

5^th August 2014

S&U PLC ("S&U" or "the company")

Half Year Update and Notice of Results

S&U, Britain's foremost specialist Motor Finance and Home Credit provider, today issues its trading update for the six months to 31 July 2014.  The Company is pleased to announce that it continues to trade in line with market expectations and will announce its interim results on the 24^th September 2014.

Motor Finance

Advantage Finance, our motor finance subsidiary, continues to trade at record levels.  Advances are over £18m above last year for the period and credit quality is the best ever.  Both result from continued refinements in under-writing and marketing and fully justify the additional £20m of investment made since the year end.  This includes the purchase of expanded premises in Grimsby.

Home Credit

Improved consumer confidence and a greater market share have boosted our home credit business in the first half.  Three new branches have been opened, the number of representatives has grown by 10% and this has been more than matched by increases in both advances and collections.  Debt quality continues to improve and the business remains cash generative.

Transition to regulation by the Financial Conduct Authority is going smoothly and compliance reviewed; our full authorisation is expected to be approved on schedule in the middle of next year.

Funding Capital

Additional investment in both our motor finance and home credit businesses has seen gearing rise to around 70% from 39% a year ago.  To accommodate this, and to maintain headroom, our long-standing banking arrangements have been augmented by longer-term facilities from new funders at AIB and M&G Investments.  In addition, constructive discussions regarding the acquisition of a deposit taking licence continue with the Regulators.

Commenting on the Company outlook, Anthony Coombs, S&U Chairman, said:

"Current performance and future prospects in both our businesses are very encouraging.  Our constant attention to the service we give every customer justifies our confidence in the future."

For further information, please contact:

S&U plc                                                                 www.suplc.co.uk

Anthony Coombs, Chairman                       0121 705 7777

Arden Partners plc

Chris Hardie/ Jonathan Keeling                 020 7614 5929

Smithfield

Will Swan                                                            020 7360 4900

 

END

 

 

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