Final Results

S & U PLC
18 April 2000


  S&U PLC  -  FINAL RESULTS FOR THE YEAR TO 31 JANUARY 2000
  
  OPERATING PROFIT £6.2m (£6.1m) ON TURNOVER £68.5m (£64.8m)
  
  TOTAL DIVIDEND UP 5%
  
  EARNINGS 34.9p (33.3p)
  
  ADVANTAGE FINANCE TO PLAY 'INCREASINGLY
  IMPORTANT ROLE IN RISING TRADING PROFITS'
                
  COMPANY TO CONTINUE TO TARGET AND ACQUIRE
  APPROPRIATE BUSINESSES
  
  CURRENT TRADING CONFIRMS VIEW THAT 'HOME COLLECTED
  DIVISION WILL ACCELERATE RATE OF GROWTH IN SALES
  AND PROFITABILITY THIS YEAR'
     
  OUTLOOK FOR THE FUTURE 'VERY SATISFACTORY'
  
  
  Enquiries:   Simon Preston         
               Financial Public Relations Ltd
               Tel: [phone]
             
  
  CHAIRMAN'S STATEMENT
  
  
  Results

  The operating profit for the year has increased to £6.2m from £6.1m in 1999.
  Pre-tax trading profits for the year are £6.0m as against £5.9m for the     
  previous year.

  Turnover is £68.5m as compared to £64.8m for the comparable period.  The    
  Board is recommending a final dividend of 16p per share, making 21p per     
  share for the year, compared to 20p in 1999, an increase for the year as a  
  whole of 5%.  This means that shareholders have enjoyed compound dividend   
  growth in dividend income of 13.70% per annum over the last 10 years.

  Home Collected Credit

  There was progress made in almost all parts of the country.  The full year's
  figures show a reasonable advance for the year in the Midlands and the      
  South, and in our S D Taylor subsidiary in the North-west.  A new branch has
  been opened in Ipswich and additional representatives started at other      
  branches.  The costs of building the investment in these has meant only     
  slightly increased profits in this period, but will enhance the future.  The
  demand for our services continues to be encouraging.

  We believe there is potential for steady growth and our strategy is to      
  recruit more agents and add to our customer base.

  Motor Car Finance - Advantage Finance Limited

  One highly significant investment in the future made during the period under
  review is the establishment of a new wholly owned subsidiary company.  In   
  May last year, I formed a team of outstanding executives experienced in this
  field, in a new start-up company called Advantage Finance Limited. Advantage
  started trading from its head quarters in Grimsby on 5th July 1999,         
  providing hire purchase finance for second-hand cars.  We have justifiably  
  high expectations of this exciting development.

  We budgeted for a start-up loss in the first seven months to January 2000   
  and for the company to be making a monthly profit by month nine.  In the    
  event, the loss for the first seven months has been slightly less than      
  budgeted, and we moved into monthly profit a month earlier than
  envisaged.  I believe that we have a first class team presenting a first    
  class service with great professionalism.  Advantage will make a meaningful 
  contribution to group profits in the half year to July 2000.  We have       
  established the funding that they will need to achieve the plan for
  the coming year, and have confidence in their ability to provide a          
  significant addition to the profits of the group in this current year.  This
  is the start of the most exciting development for S&U, and we expect this   
  new venture will play an increasingly important role in rising trading
  profits for future years.

  Review

  The Group remains in a strong financial position.  The outlook for the      
  future is very satisfactory.  We shall continue to keep a look out for      
  opportunities to acquire additional businesses that can be absorbed         
  successfully into our existing structure.  We are also alert to
  the additional opportunities that will become available through the         
  internet.

  Board

  There have been no changes in the board since the last annual general       
  meeting.  I am very pleased with the support I have from all the board; both
  executive and non-executive.
  
  Broker

  I am delighted to announce the appointment of Brewin Dolphin Securities     
  Limited as brokers to the Group. Brewin Dolphin have considerable expertise 
  in the quoted sector and have a substantial array of private and            
  institutional clients.  They will be carrying out research for the
  company and will work with us on investor relations.

  Staff

  Every company is only as good as the quality and dedication of its staff.   
  S&U is a very labour intensive operation and therefore even more so         
  dependent on its staff.  We have a superb team and I must take this         
  opportunity to thank them on your behalf for their contribution during the  
  year.Looking forward

  The company has many strengths; sound finances, clear and proven strategy,  
  good management and committed staff.  It plans to continue the successful   
  expansion in the growing market for Home Collected Credit.  Demand for      
  credit from both existing and new customers remains strong as they continue 
  to value the convenient, quick and straightforward service in their homes.  
  The provision of motor car hire purchase finance by Advantage through       
  carefully targeted underwriting gives an added and growing opportunity for  
  expansion and profit.  The Board is confident that the company can meet all 
  the challenges of the new financial year and an continue to improve its     
  performance.


CONSOLIDATED PROFIT AND LOSS ACCOUNT
For Year ended 31st January 2000  

                                2000                 1999
                                £000                 £000

TURNOVER                      68,535               64,833
                                                   
Cost of sales                (45,270)             (43,096) 
                              -------             -------                     
Gross profit                  23,265               21,737

Administrative expenses      (13,893)             (12,865)

Provision for doubtful debt   (3,184)              (2,806) 
                             --------              -------

OPERATING PROFIT               6,188                6,066


Net interest payable            (181)                (214)  
                              -------               ------

PROFIT ON ORDINARY 
ACTIVITIES BEFORE 
TAXATION                       6,007                5,852

Tax on profit on ordinary 
activities                    (1,758)              (1,796)
                             --------              -------

PROFIT ON ORDINARY 
ACTIVITIES AFTER TAXATION 
BEING PROFIT FOR THE 
FINANCIAL YEAR                 4,249                4,056 


Dividends paid and proposed   
including amounts in respect 
of non equity shares          (2,619)              (2,498)
                              ------                ------

RETAINED PROFIT FOR THE
FINANCIAL YEAR                 1,630                1,558   
                               =====                =====


Earnings per Ordinary share    34.9p                33.3p
                               =====                =====
                                                                   
Dividends per Ordinary share   21.0p                20.0p
                               =====                =====

There have been no recognised gains or losses other than the profit for the
current and preceding years.

All activities derive from continuing operations.


SUMMARY CONSOLIDATED BALANCE SHEET
31January 2000
                                                     
                                                 2000          1999
                                                 £000          £000
                                                               
FIXED ASSETS                                                       

Tangible assets                                 2,980         2,891  
                                               ------         -----

CURRENT ASSETS                                                     

Amounts receivable from customers 
including £3,788,000 falling due 
after one year (1999: nil))                    38,471        30,629


Other current assets                            1,581         1,094 
                                              -------        ------
                                               40,052        31,723     

CREDITORS: amounts falling due 
within one year                               (15,229)       (8,441)
                                              --------       -------

NET CURRENT ASSETS                             24,823        23,282 
                                              --------       -------

TOTAL NET ASSETS                               27,803        26,173
                                               ======        ======

CAPITAL AND RESERVES                           27,803        26,173   
                                               ======        ======

Statistics                                  

                                                31-Jan-00     31-Jan-99

Operating Profit/Turnover                        9.0%          9.4%

Operating Profit/Net Assets                     22.3%         23.2%

Net Borrowing/Shareholders Funds                36.0%         18.0%



CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 January 2000                                                 
                                                                  
                                                   2000           1999
                                         £000      £000    £000   £000
                                                                  
                                       
Cash flow from operating activities                (956)         3,933


Returns on investments and
servicing of finance 

Interest received                          55                13

Interest paid                            (236)             (227)

Preference dividends paid                 (77)             (150) 
                                       -------            ------
Net cash outflow from returns on
investments and servicing of finance               (258)         (364)

Taxation                                           (965)       (1,920)

Capital expenditure and financial
investment 

Purchase of tangible fixed assets        (760)             (633)

Proceeds of sale of fixed assets           58                66
                                       -------            ------

Net cash outflow for capital
expenditure and financial
investment                                         (702)         (567)

Equity dividends paid                            (2,339)       (2,289) 
                                                 ------        ------

Decrease in cash in the year                     (5,220)       (1,207)
                                                 ======        ======


1. This summary of results does not constitute full accounts and is unaudited.
The statutory accounts for the year ended 31 January 2000 will be finalised on
the basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
after the Annual General Meeting.

2. A final dividend of 16.0p per Ordinary Share is proposed, payable on 1 July
2000, with a record date of 5 June 2000.

3. The number of shares used in the calculation of earnings per share is the
average number of shares in issue during the year of 11,737,228 (1999:
11,737,228).  There are no dilutive shares.

4. The figures shown for the year ended 31 January 1999 are not statutory
accounts.  A copy of the statutory accounts has been delivered to the
Registrar of Companies, contained an unqualified audit report and did not
contain an adverse statement under section 237 (2) or 237 (3) of the Companies
Act 1985.

5. The 2000 Annual Report and Financial Statements will be posted to
shareholders in due course.  Copies of this announcement are available from
the Company Secretary, S&U plc, Royal House, Prince's Gate, Homer Road,
Solihull, West Midlands, B91 3QQ.
  

MANAGING DIRECTORS'S STATEMENT  
  
A year ago, I committed myself to 'significant improvements in company
profitability and market value in the future'.  This year's financial results
lay the foundation for that and reflect and underline a sea-change in both the
productivity, underlying profitability and growth potential of the Group.  The
current rate of growth and quality of debt in our home collected business, the
excellent first year performance of Advantage, our new car finance subsidiary,
and a turnaround in profitability of our small hosiery business, all point to
the most encouraging prospects in profitability and shareholder value at S&U
for many years.

Operating results
                                                                   
                        Year ended           6 months ended    6 months ended
                                                                   
                  31 January 31 January 31 January 31 January 31 July 31 July
                        2000       1999        2000       1999    2000   1999
                          £m         £m          £m         £m      £m     £m

Turnover                68.5       64.8        37.4       34.4    31.1   30.4

Gross profit            23.3       21.7        12.7       11.1    10.6   10.6

Operating expenses     (13.9)     (12.8)       (7.4)      (6.5)   (6.5)  (6.3)

Doubtful debt           (3.2)      (2.8)       (1.7)      (1.3)   (1.5)  (1.5)

Operating profit         6.2        6.1         3.6        3.3     2.6    2.8

Interest                (0.2)      (0.2)       (0.1)      (0.1)   (0.1)  (0.1)

Profit before taxation   6.0        5.9         3.5        3.2     2.5    2.7


Home collected credit

The home collected credit division has produced profits up £120,000 on last
year.  Sales growth met targets in all three companies.  As I forecast, the
best sales growth was achieved by our Southern operation, although one-off
reorganisational costs and the start up expense of representative and
branch expansion held back profits growth.

Our Northern subsidiaries together showed increases in profit and levels of
bad debt significantly better than last year.  Current trading confirms my
view that the home collected division will accelerate its rate of growth in
both sales and profitability this year.

The quality of the company's book debt continues to be good, and both our
historic and anticipated bad debt provisions out-perform our major
competitors.  This underlines the importance of our focus upon a niche market
of better off and more aspirational customers within our traditional social
economic groups, and of investing in the training and development of committed
full time Representatives.  In addition, we continue to streamline our product
range; improving value to the customer and broadening its appeal through
better marketing, whilst improving gross margins.

Notwithstanding a rigorous write-off policy, current home collected book debt,
after both provisions and deferrals, now stands at just over £33m, its highest
level ever.  As I anticipated a year ago, the bulk of this increase in book
debt has been in the South of England where the Group is under represented,
and where real incomes are highest.  Our new branch in Ipswich is now fully
operational and has been augmented by the purchase of Stamford Supplies, a
well established local credit business.  Further acquisitions are anticipated
this year which will complement the opening of additional outlets in the
South.

Equally pleasing has been the improvement in results of our North East
subsidiary which necessitated a one-off recognition of bad and doubtful debt
last year.  This year has seen an improvement in profit, and a reduction in
bad debt which have provided the base for significantly improved current
trading. S D Taylor, our North West subsidiary, has again produced an
improvement in profit and sales, and operates at a very high level.

A E Holt (Leicester) Limited

A sustained and significant improvement in sales, and tight cost control, has
seen a return to profit in the current year.  Unlike many in the textile
sector, Holt's order books are excellent and its margins healthy.  Plans are
being made for co-operation with an integrated hosiery and machinery
manufacturer in India which will lower the cost of volume production, whilst
retaining the flexibility, close-to-market design and production of our
facilities in Leicester.  I anticipate that this year, Holt's profits will
again move towards the return on capital achieved in the rest of the Group.

Advantage Finance

Our new car finance subsidiary is rapidly justifying the 'high expectations'
we had of it in our Interim Report of July.  After just 7 months of trading,
it is both in profit and ahead of business plan.  It's receivables book at
year end reached £5.5m, representing nearly 1,400 customers.  I anticipate
that both these figures will more than treble by the end of the company's
second year of trading. A very professional team is headquartered in Grimsby. 
It is led by management with many years of experience in the HP car finance
industry, and serviced by Area Sales Managers in close liaison with
car sales outlets throughout the country.  I am very impressed both with the
expertise of our employees at Advantage and with the sensible and conservative
approach they take to new business, thus ensuring future debt quality.
                                                               
The development of Advantage has made demands on S&U's investment resources. 
Our previously low levels of gearing have enabled medium term funding for a
significant investment in Advantage to be secured.  This new investment will
significantly enhance Group profitability in the near future.


Profit, dividend and earnings per share
                                                                   
                        Year ended           6 months ended    6 months ended
                                                                   
                  31 January 31 January 31 January 31 January 31 July 31 July
                        2000       1999       2000       1999    2000    1999
                          £m         £m         £m         £m      £m      £m

Profit before tax        6.0        5.9        3.5        3.2     2.5     2.7

Profit after tax         4.2        4.1        2.4        2.2     1.8     1.9

Earnings per share     34.9p      33.3p      20.6p      18.0p   14.3p   15.3p

Dividends per share    21.0p      20.0p      16.0p      15.0p    5.0p    5.0p


Earnings per share have increased by 1.6p for the full year against an
increase of 1.3p last year.  Our investment in Advantage Finance, and in home
collected book debt, will improve the group's return on shareholders' funds
this year.  This trend and further profits growth anticipated from current
trading lead your Board to recommend an increased final dividend of 16p per
Ordinary Share.

Capital structure, liquidity and treasury

Although we will continue to invest in both our home collected and car finance
businesses, both our borrowing and gearing are, and will remain, conservative
by both standards in the financial sector and in absolute terms.  S&U's net
assets have risen by £1.63m (6.2%) this year compared to £1.56m (6.3%) a year
ago, and demonstrates the continued strength of the company's financial
position. 

Group gearing now stands at 36% and future investment and interest payments
are comfortably accommodated within the company's Business Plan.

The Future

Last year I stated that 'recent changes provide a structure for accelerated
growth and profitability in your company over the next decade'; the last year
has seen satisfactory progress in achieving that accelerated growth in
profitability and shareholder value.

Nonetheless, the revitalisation of the company proceeds apace; current and
future initiatives include:

     Joint venture arrangements with other consumer finance and insurance
based companies which will increase our customer reach.

     Our training initiatives will continue to be developed towards an
'Investors In People' qualification.

     We will develop Loansathome.com, our S&U consumer website.  The potential
of the internet for communicating with our existing customers and accessing
new ones is enormous.  We plan to provide finance and credit card facilities
through the internet for future customers.

     We will continue to streamline our product range, and improve service for
our customers through better, IT focused, marketing.

     The appointment of Brewin Dolphin Securities Limited as our brokers will
improve our communications with the private investing community.

We will continue to target and acquire appropriate businesses both in the home
collected and car finance fields.


Conclusion

The development and refocusing of S&U in the past two years means that
prospects for growth in turnover and profits are now more exciting than for
many years.  Forecasts must remain the province of our brokers, but S&U's
recently improved stock market performance, particularly compared to our
peers, is hopeful evidence of a more realistic valuation of the quality of our
earnings and of our growth prospects.  This would be both timely and fully
justified.  Notwithstanding this, with the continued support of our Board, our
excellent management team and staff, and most of all our loyal customers, I
confidently expect significant improvements in the value of S&U in the year
ahead.

Anthony M V Coombs
Managing Director