Final Results

S & U PLC
25 March 2004


                                     S&U PLC

                  Providers of Consumer Credit & Motor Finance

                   RESULTS FOR THE YEAR TO 31ST JANUARY 2004


PRE-TAX PROFITS £9.0M (£7.8M) UP 15% ON BUSINESS TRANSACTED £89.3M (£88.8M).
OPERATING PROFIT £9.7M (£8.8M) UP 10.2%

TOTAL DIVIDEND 29p (28p) UP 3.6%. EARNINGS PER SHARE 52.6p (46.0p) UP 14.3%

HOME COLLECTED CREDIT

BAD DEBT 'SIGNIFICANTLY REDUCED'. TRADITIONAL BUSINESS 'RE-INVIGORATED' AND 
DEMONSTRATING GROWTH POTENTIAL. PLAN TO CONTINUE SUCCESSFUL EXPANSION

MOTOR CAR FINANCE

GROWTH PATTERN 'VERY ENCOURAGING'. PRE-TAX PROFITS £1.6M (£1.3M). 'OPPORTUNITY
FOR EXPANSION AND INCREASING PROFITABILITY IN FUTURE YEARS'


Enquiries:

Derek Coombs, Executive Chairman, S&U PLC
or
Anthony Coombs, Managing Director, S&U PLC

Telephone: [phone]



CHAIRMAN'S STATEMENT

Results

The operating profit for the year has increased to £9.7m compared to £8.8m for
the previous year. Profit on ordinary activities before taxation for the year is
£9.0m against £7.8m for 2003. Business transacted for the year is £89.3m
compared to £88.8m. Earnings per share rose from 46p to 52.6p providing good
cover to the proposed dividend. The Board is recommending a final dividend of
21p per ordinary share making 29p per share for the year as a whole compared to
28p per share last year an increase for the year of 3.6%. The dividend will be
paid on 2 July 2004 to ordinary shareholders on the register at 4 June 2004. The
shares will be dealt ex dividend from 2 June 2004. On this basis on the average
market price for February 2004 of 572.5p the yield would be 5% with a cover of
1.8 times.

Home Collected Credit

The South London problem has been resolved. We have made crucial personnel
changes and these have resulted in establishing a confident platform for growth
within this division. Bad debt has been significantly reduced as a percentage of
business transacted. Our two major subsidiaries in this field are performing
well, particularly SD Taylor Limited.. It is heartening to see that S&U's
traditional business has been re-invigorated and is demonstrating its growth
potential.

Advantage Finance Limited - Motor Car Finance

Advantage's continuing growth pattern is very encouraging. Pre-tax profits rose
from £1.3m to nearly £1.6m with little additional capital employed and with a
deferred revenue profit of £8.9m. The management structure is first class. We
have a very efficient head office team in Grimsby and our marketing activities
cover the country, with particular emphasis on the South, the Midlands and the
North. Advantage has set itself a budget profit target of £1.9m for the current
year and considering how close they came to their target of £1.6m last year that
does seem to be a sustainable expectation. Their trading pattern in recent
months validates their ambition.

Staff

I would like to pay a special tribute to our company secretary David Maiden who
is retiring at the end of May after 29 years' exemplary service. I also welcome
our new finance director and company secretary Christopher Redford. Chris is a
chartered accountant and has been the finance director of Advantage Finance
Limited since its inception and has well earned his promotion to the main board.
Fortunately he has a first class deputy to succeed him at Advantage.
A great tribute for these results must go to management and staff at all levels
for their continued loyalty and commitment throughout the year. Their
enthusiastic contribution is a key factor behind our success.

Outlook

The group's financial position continues to go from strength to strength and the
profits grow. The business has defensive qualities at a time when the global
economic scene is uncertain. It also has sound finances, clear and proven
strategy, good management and committed staff. We plan to continue the
successful expansion in the market for home collected credit. The provision of
motor car direct debit finance by Advantage through carefully targeted
underwriting demonstrates its success and provides an additional opportunity for
expansion and increasing profitability in future years.

Derek M Coombs
Chairman


MANAGING DIRECTOR'S REPORT

After the pause in our profits growth of last year, it gives me great
satisfaction to confirm 'the strong recovery in Group profitability' I forecast
in my 2002/2003 report. Profits before tax at £9.0m comfortably exceeds both
£7.8m last year and our broker's forecast. Operating profit is up 10.2% on a
year ago, and, at 10.9% of business transacted, is at near record levels.

Earnings per share increased by nearly 15% whilst the Group's financial position
has become even stronger with gearing falling from 68.3% to 62.8% - the latter
despite an additional £2m investment in Advantage, our motor finance subsidiary,
and several acquisitions for our home credit business.

Significantly these results have been achieved through a steady rather than
spectacular increase in business transacted, which bodes well for future debt
quality. Thus business transacted was just above last year at £89.26m, as strong
rises at S D Taylor, our North West home credit subsidiary, and at Advantage
Finance were predictably off-set by a fall in turnover at the S & U home credit
subsidiary as it continues its recovery from the over trading of 2 years ago.

This pattern of steady sales growth, especially in our home credit business, was
accompanied by higher quality business and tight expense control. In contrast to
some of our larger volume driven competitors, S & U has always been focused on
quality, higher productivity customers, on responsible margins and lower risks
of bad debt. At 5.5% of business transacted our bad debt levels are amongst the
lowest in the industry. Further, Group expenses have actually fallen in the last
year.

We run a tight ship and will continue to do so. Improved security procedures,
credit control and underwriting and our continued emphasis upon productivity per
Representative gives us a very sound platform to take advantage of the improved
economic environment I envisage this year.

Operating Results
                                    Year Ended       Year Ended
                               31 January 2004  31 January 2003
                                            £m               £m

Business Transacted                       89.3             88.8

Gross Profit                              30.9             31.9

Operating Expenses                       (16.3)           (16.3)
Doubtful Debt                             (4.9)            (6.8)
Operating Profit                           9.7              8.8

Interest payable                          (1.0)            (1.2)
Profit on the sale of fixed                0.3              0.2
assets

Profit before Taxation                     9.0              7.8


Home Credit

Our home credit division produced encouraging results and present indications
point to further progress this year. Overall pre-tax profit rose to £7.6m and
operating profit against business transacted improved to nearly 11%. Average
productivity per Representative continues to rise whilst our customer
satisfaction surveys continue to show how much our clients value the
personalised service we provide. Indeed these findings were replicated recently
by the independent Joseph Rowntree Foundation in a study of the home credit
industry as a whole.

We broadened and improved our finance and HP ranges as well as making
improvements in customer marketing. Business contracted per customer continues
to steadily grow - an important indicator of the quality of our customer
relationships. Throughout the year we made several acquisitions, particularly in
the North West, Scotland and the South West and will continue to do so -
provided the customers thus acquired meet our quality and income criteria.

Our most improved subsidiary was S & U, particularly in the light of its quality
problems of a year ago. Profit before deferred revenue rose by nearly £900,000,
despite the predicted fall in turnover as more disciplined collecting and
underwriting was introduced. Current trends are very positive. S D Taylor and
Wilson Tupholme, our Northern based subsidiaries, continued to maintain very
high returns against assets employed of around 20%, the former again posting
record profits.

Gradual withdrawal from home credit by some of our major competitors and further
consolidation within the industry in anticipation of the reform of the Consumer
Credit Act and European Consumer Credit Directive, does give S & U major
opportunities for growth through acquisition in home credit. Although
discussions on detail continue, the recent Consumer Credit White Paper provides
a broad framework for regulation which is entirely consistent with S & U's long
standing strategy of responsible, non-distress lending to customers who value
the convenience, flexibility and cash management which home credit provides.
Indeed I was encouraged to hear the Consumer Affairs Minister recognise these
attributes in a House of Commons debate on consumer credit at the end of last
year.

Advantage Finance

Yet again I am delighted to report another year of excellent progress at
Advantage, our motor finance subsidiary. Strong leadership, state of the art IT
and a highly motivated team have combined to produce profits before taxation of
£1.56m, 21% better than last year. Gross book debts have grown to £32.8m as both
the geographical reach and the level of business conducted with Advantage's key
motor dealers increases.
2003 saw the third consecutive year of record new car registrations and a
buoyant and more profitable used car market. This bodes well for Advantage
particularly as it increasingly focuses upon higher value vehicles from loyal
and established dealers. Thus last year new agreements rose by 14%, gross
margins improved and collection rates consistently met challenging targets.
Senior management has been refocused in particular to upgrade our sales and
marketing for a growing business; results are already evident in a sales
increase of 13% and a very encouraging start to the current year.

The infrastructure of the business is now in place for higher volumes, which
with a more mature debt, should see further increases in return on capital
employed. This has risen steadily over the past 2 years despite continuing
investment - last year £1.85m - in book debt. This is a pattern which will be
repeated over the next three years as we continue to exploit nationally the
growing demand for Advantage's products.

Group Profit, Dividend and Earnings Per Share

                     Year       Year   6 months   6 months   6 months   6 months
                    ended      ended      ended      ended      ended      ended
                31.1.2004  31.1.2003  31.1.2004  31.1.2003  31.7.2003  31.7.2002
                       £m         £m         £m         £m         £m         £m

Profit before
tax                   9.0        7.8        4.8        3.3        4.2        4.5

Profit after
tax                   6.3        5.6        3.5        2.4        2.9        3.1

Earnings per
share                52.6p      46.0p      28.1       20.0       24.5         26

Dividends per
share                29.0p      28.0p      21.0         20          8          8


As predicted at half year, the second half of 2003/2004 showed a strong recovery
in profit and turnover. Current indications in all our businesses are that these
benign trends continue. Following no change of dividend for the half-year, it is
therefore right to increase the final dividend this year to 21p per Ordinary
Share making a total for the year of 29p (2003 - 28p). Cover at this level will
improve to just over 1.8 (calculated as profit on ordinary activities after
taxation, divided by dividends paid and proposed).


Capital Structure, Liquidity and Treasury

S & U has always kept tight control of its gearing. This is especially prudent
now as longer term interest rates rise and when headroom is required for the
finance, through debt, of our organic expansion and of acquisitions in home
credit and our motor finance businesses. This year gearing has fallen slightly
to 62.8% from 68.3% a year ago. Broadly, our additional investment in Advantage
has been counterbalanced by the strong cash generation of our more mature home
credit business.

We will take advantage of this strong base by restructuring our existing bank
facilities on a medium term 5 year basis, which will both strengthen our balance
sheet and reflect the core borrowing required for our Advantage Motor Finance
business. Although we unwound our swap facilities at a profit this year, I
anticipate making further such arrangements when an appropriate opportunity
arises.

Conclusion

Both the general industry environment and the specific health of S & U gives me
more confidence in the future that at any time over the past 5 years. Internally
we have a strong management team - made even more so by the very welcome
promotion of Chris Redford ACA from Advantage to be our Group Finance Director.
The Group has a clear marketing and product strategy, tighter security and
underwriting procedures and historically good cost control.

The legal and regulatory climate is both clearer and more positive now than for
over a decade and I pay tribute to the excellent work of the Consumer Credit
Association in promoting the industry's interests to Government. High employment
levels and generally low levels of overindebtedness amongst our sub-prime
customers offer significant opportunities for responsible lenders. We aim to
take advantage of these trends by organic growth, further advances in efficiency
and by acquisition of good quality businesses as they become available.

Progress is only possible through the efforts of good quality people. Throughout
the Group we pride ourselves on the loyalty and long service of large numbers of
our staff. A prime example is the long service of nearly 30 years given to us by
David Maiden, our Company Secretary, who retires this year. Such loyalty is
essential if we are to provide high levels of service to our much valued
customers. I therefore pay tribute to our staff and thank your Board of
Directors for their invaluable support over the past year. I look forward to
still further progress in the year ahead.


Anthony M V Coombs
Managing Director


SUMMARY CONSOLIDATED PROFIT & LOSS ACCOUNT
Year ended 31 January 2004

                                           2004      2003
                                           £000      £000

BUSINESS TRANSACTED                      89,260    88,828
                                         ======    ======

TURNOVER                                 33,929    34,996
Cost of sales                            (3,063)   (3,131)
                                         ------    ------
Gross profit                             30,866    31,865

Other expenses                          (16,240)  (16,310)

Provision for doubtful debt              
(includes exceptional item of £nil
(2003: £1.9m))                           (4,933)   (6,762)
                                         ------    ------

Total administrative expenses           (21,173)  (23,072)

OPERATING PROFIT                          9,693     8,793
                                          
Profit on sale of fixed assets              312       214

Net interest payable                       (968)   (1,161)
                                         ------    ------
PROFIT ON ORDINARY ACTIVITIES BEFORE      
TAXATION                                  9,037     7,846

Tax on profit on ordinary activities     (2,711)   (2,293)
                                         ------    ------
PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION BEING PROFIT                      
FOR THE FINANCIAL YEAR                    6,326     5,553

Dividends paid and proposed - including
amounts in respect                       
of non equity shares                     (3,558)   (3,440)
                                         ------    ------

RETAINED PROFIT FOR THE FINANCIAL YEAR    2,768     2,113
                                         ======    ======

Basic Earnings per Ordinary share         52.6p     46.0p
                                         ======    ======

Dividends per Ordinary share              29.0p     28.0p
                                         ======    ======

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

All activities derive from continuing operations.


CONSOLIDATED BALANCE SHEET
31 January 2004

                                              2004     2004        2003     2003
                                              £000     £000        £000     £000

FIXED ASSETS
Tangible assets                                       2,474                2,646
                                                     ------               ------
CURRENT ASSETS
Stocks                                                  105                  214
Debtors:
- Amounts receivable from customers
(including
                                            
£14,520,000 falling due after one year
(2003: 12,776,000))                         64,526               60,949
- Other debtors                                948                  946
                                            ------               ------
                                                     65,474               61,895
Cash at bank and in hand                                 10                  106
                                                     ------               ------
                                                     65,589               62,215

CREDITORS: amounts falling due within               
one year                                            (29,832)             (14,398)
                                                     ------               ------
NET CURRENT ASSETS                                   35,757               47,817
                                                     ------               ------
TOTAL ASSETS LESS CURRENT LIABILITIES                38,231               50,463

CREDITORS: amounts falling due after
more than one year                                        -              (15,000)
                                                     ------               ------
NET ASSETS                                           38,231               35,463
                                                     ======               ======
CAPITAL AND RESERVES
Called up share capital                               2,117                2,117
Share premium account                                 2,136                2,136
Revaluation reserve                                     501                  600
Profit and loss account                              33,477               30,610
                                                     ------               ------
TOTAL SHAREHOLDERS' FUNDS                            38,231               35,463
                                                     ======               ======

                                                  31-Jan-04            31-Jan-03

Operating Profit/Business Transacted                  10.9%                 9.9%

Operating Profit/Turnover                             28.6%                25.1%

Profit Before Taxation/Net Assets                     23.6%                22.1%

Net Borrowing / Equity Shareholders Funds             62.8%                68.3%



CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 January 2004

                                           2004                2003
                                  £000     £000      £000      £000

Cash flow from operating                  
activities                                7,115               7,366

Returns on investments and
servicing of finance
Interest received                   2                   5
Interest paid                    (992)             (1,159)
Preference dividends paid        (154)                (78)
                                ------              ------
Net cash outflow from returns
on investments and                       
servicing of finance                     (1,144)             (1,232)

Taxation                                 (2,516)             (3,035)

Capital expenditure and
financial investment
Purchase of tangible fixed       
assets                           (760)               (707)
Proceeds of sale of fixed          
assets                            676                 459
                                ------              ------
Net cash outflow for capital
expenditure and                             
financial investment                        (84)               (248)

Equity dividends paid                    (3,289)             (3,357)
                                          ------              ------
Increase (Decrease) in cash in               
the year                                     82                (506)
                                          ======              ======


NOTES TO THE PRELIMINARY ANNOUNCEMENT
Year ended 31 January 2004

1. The financial information has been prepared using the same accounting
policies as were used in preparing the statutory accounts of the Group for the
year to 31 January 2003

2. This summary of results are not statutory accounts within the meaning of
section 240 of the Companies Act 1985, but are derived from those accounts. The
statutory accounts for the year ended 31 January 2004 on which the auditors have
given an unqualified report and did not contain an adverse statement under
section 237(2) or 237(3) of the Companies Act 1985 will be delivered to the
Registrar of Companies after the Annual General Meeting.

3. The financial information within this report has been prepared in accordance
with applicable accounting standards.

4. 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 (2003:
11,737,228). There are no dilutive shares.

5. If approved at the Annual General Meeting a final dividend of 21.0p per
Ordinary Share is proposed, payable on 2 July 2004, with a record date of 4 June
2004.

6. The Annual General Meeting will be held on 4 June 2004.

7. The figures shown for the year ended 31 January 2003 are not statutory
accounts, but are derived from those 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.

8. The 2004 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.

9. This announcement was approved by the directors on 24 March 2004.




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