Trading Statement

RNS Number : 4418Z

S & U PLC

11 December 2014

 



11th December 2014

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

         S&U Trading Statement

S&U plc provides a trading update for the period from the 1st August to 10th December 2014.

Motor Finance

Advantage Finance, our market leading motor finance provider, continues its impressive progress, albeit at a slightly moderated pace of growth in new loan transactions. Debt quality has continued to improve even from last year's record level and year to date, monthly collections are now 40% up on last year. Customer numbers are over a third higher than last year, which, together with record collections and good cost control, promise yet another exemplary profit performance.

Home Credit

Loansathome4U, our Home Credit business, enters the Christmas peak trading season with debt quality better than for many years and hence credit availability for our customers at record levels. This is reflected in weekly collections ahead by 13% on last year, against a 7% increase in net receivables.

The strength of our product offer and the responsibility of our lending is reflected in customer numbers which are up over 7,500 or 9% on 2013. In addition, a 9% rise in representative numbers shows our traditional commitment to high standards of customer care. Management expect that a successful Christmas trading period should confirm the current promising trend in profitability.

Following the transfer of consumer credit regulation from the OFT to the FCA on 1^st April 2014, preparations for full authorisation due in Q2 2015, continue steadily. Affordability assessments have been revised, reporting lines to the Board reviewed and new Customer Care managers appointed to oversee the process.

Funding

During the period, a further £15m has been drawndown from our M&G facility to finance growth in both our businesses. Existing facilities provide us with adequate headroom for current requirements and anticipated growth later next year will be funded by additional facilities. Discussions on deposit taking arrangements are ongoing with the regulators and we anticipate making a formal application early in the new financial year.

Future Prospects

Commenting on Group trading and outlook, Anthony Coombs, S&U Chairman, said:

"Robust growth throughout our businesses is the product of rising consumer confidence, strong debt quality and responsible lending. Our close relationships with our customers and loyal introducer brokers continue to bear fruit in building S&U. We therefore view the future with quiet confidence."

For further information, please contact:

S&U plc                                                                 www.suplc.co.uk

Anthony Coombs, Chairman                       0121 705 7777

Arden Partners plc

Chris Hardie                                                       020 7614 5917

Smithfield

Will Swan                                                            020 7360 4900

 

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