Trading Statement

RNS Number : 4682F

S & U PLC

18 May 2017

 

18^th May 2017

S&U plc ("S&U" or "the Group")

AGM Statement and Trading Update

S&U, the motor finance and specialist lender, issues a trading update for the period from its full year results on 1^st February 2017 up to 17th May 2017, prior to its AGM being held today.

Business at Advantage Finance our motor finance subsidiary remains excellent.  Applications in the first quarter were a record, new loan transaction numbers are a fifth higher than for the same period last year and average new loan quality is ahead of Q1 last year.

Net receivables now stand at £210m, up 30% on last year, and customer numbers have now passed 46,000, another record for Advantage. Although rolling 12 months impairment to revenue has slightly increased to 21.0% (31 January 17: 20.1%), reflecting product mix, Advantage's overall debt quality is good and monthly collections now exceed £9m per month.

Aspen Bridging, our new bridging finance pilot operation, has started trading and is expanding its broker network and refining its product offering.

Further investment in our receivables has seen Group borrowings increase to £65m against £49m at year end.  Current facilities give us significant headroom for continued growth.

S&U have also announced the appointment of Peel Hunt LLP as their new brokers.

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

"Advantage Finance continues to prosper in a resilient economic climate, and a stable regulatory environment.  Our confidence in the Group's steady and sustainable growth remains as strong as ever."

For further information, please contact:

S&U plc www.suplc.co.uk

Anthony Coombs, Chairman                                                                0121 705 7777

Broker                                   

Adrian Trimmings, Rishi Shah                                           Peel Hunt   020 7418 8900

Media and Investor Relations                                               

Ged Brumby                                                                       Smithfield    0203 047 2476

 

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