Interim Management Statement

RNS Number : 5265G

S & U PLC

13 May 2011

 



13 May 2011                                                   

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

Interim Management Statement

S&U, Britain's foremost niche home credit and motor finance provider, today issues an interim management statement for the period from 1 February 2011 to 12 May 2011, ahead of its Annual General Meeting being held later today.

Home Credit

Whilst customers remain understandably cautious, profitability is up and revenues in our home credit division have increased by 2% in the period against last year.  Customer numbers are similarly higher than last year.  Collections remain satisfactory, increasing by 1% against a slightly lower level of book debt as our loan profile continues to shorten.  In uncertain times, our Loansathome4u customers gravitate towards our products giving them more frequent access to finance and thus sensibly limiting their overall commitment.  This has resulted in an overall improved impairment performance and, equally important, has seen credit availability for our customers at a record level for this time of year.  Administrative costs continue within budget.

Motor Finance

Advantage, our motor finance business, continues to beat both its budget and its excellent performance last year.  Transaction volumes are 5% above budget whilst collections quality, both the new customers and across the whole loan book, remains excellent.  Revenues are above budget whilst impairment charges only marginally exceed last year - testimony to Advantage's ever stronger debt quality.  As a result, the Company is cash generative even as volumes increase.

Funding and Capital

S&U's financial position is strong and becoming stronger.   Since the year end Group borrowings have been reduced to £20.2m (May 2010: £26.1m) as the trading cash generated has more than funded good motor finance growth and also covered £2.6m of  dividend and corporation tax payments made in the first quarter.

Outlook

Even as UK economic recovery appears uncertain, S&U's close customer relationships and conservative but challenging business approach see trading in line with expectations. 

Commenting, Mr Anthony Coombs, S&U Chairman, said:

"S&U has once again demonstrated that resilience and responsibility in uncertain times bring their own reward.  The Company's current performance, and outlook for the year ahead, justifies my cautious optimism."

For further information, please visit www.suplc.co.uk or contact: 

Anthony Coombs, Chairman                               0121 705 7777 / 07767 687 150

Arden Partners plc - Broker and Financial Adviser

Adrian Trimmings / Jamie Cameron                     020 7614 5900


Smithfield - Media and Investor Relations

Will Swan / Rebecca Whitehead                         020 7903 0638

 

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