Interim Results - Part 1

S & U PLC
19 September 2002



S&U PLC



Providers of Consumer Credit and Motor Finance


INTERIM RESULTS FOR THE HALF YEAR TO 31st JULY 2002



HALF-YEAR PROFITS UP 6% TO £4.5m (£4.2m) ON BUSINESS TRANSACTED £43.1m (£42.9m)


INTERIM DIVIDEND UP 14%


£649,000 CONTRIBUTED TO PROFITS BY ADVANTAGE FINANCE


HOSIERY SUBSIDIARY TO BECOME PURE MERCHANDISING COMPANY


'CONFIDENCE IN THE FUTURE OF THE BUSINESS'  - CHAIRMAN


Chairman's Statement

I am happy to report that the pre-tax profits for the six months to the 31 July
are £4,466,000, as against £4,206,000 for the comparative period last year.
Business transacted in the period totalled £43,122,000 compared to £42,922,000
for the previous half-year. The earnings per share have increased to 26.0p
compared with 24.4p.

Whilst the bulk of the profit still comes from the Home Collected business,
Advantage Finance (the new start up business I introduced), providing hire
purchase finance for motor vehicles, increased profitability again this half
year with a contribution of £649,000. We expect the full year for Advantage to
show a further significant advance. In addition it has set aside £7,079,000 of
deferred revenue profit to future periods in respect of advances already made.

Turning now to our hosiery factory, AE Holts, there is a loss of £83,000 for the
half-year from this small subsidiary. We have now bitten the bullet and all
production staff have had to be made redundant, the cost of which has been
included above. The business will trade as a pure merchandising company
importing from overseas and exporting to our major customers. This should
eliminate future losses from that source.

The interim dividend for the period is increased to 8p per ordinary share,
compared with 7p at this time last year. This will be paid on 14 November 2002
to ordinary shareholders on the register at 18 October 2002. The shares will go
ex dividend on 16 October.

The world economic climate has become gloomier, but we have confidence in the
future of our business.




DM Coombs
Chairman
18 September 2002



Managing Director's Half Year Statement To 31st July 2002



In recent statements I have emphasised both our aim for 'a sea-change' in S &
U's productivity and profitability and also the stability of your company's
earnings in different economic circumstances.  Although the current economic
slow down has made conditions more unpredictable, Group profit at £4.46m against
£4.21m last year (and up 75% on 3 years ago) is a satisfactory result.
Nevertheless the relative fragility of the economy and of consumer confidence is
reflected in Group business transacted which is the same as last year, whilst
Group turnover has risen by 7.4% in the same period.  It is sensible therefore
to approach the full year with cautious confidence.



Our Home Collected business reflects this.  Whilst turnover is 8% up on last
year and collections cash 5% better over the period, profits growth has been
restrained by variable geographical performance.  Thus S D Taylor, our North
West subsidiary, has distinguished itself under new management by posting record
half-year pre tax profits at an annualised return of 26% of shareholders' funds.
On the other hand, bad debt loss, on a one-off basis, increased at our South
East subsidiary due to a fraud by a Representative in London.  We have taken a
variety of measures, after a full external review, to strengthen controls to
ensure that such events do not recur and that our future debt quality benefits
from the lessons learned.



Elsewhere, the quality of our home collected debt remains good and bad debt
within budget.  This reflects our focus on higher quality family business and
our increasingly refined Credit Control procedures. This, with firm cost control
and our growing range of loan and HP products, reinforces my belief in the
future profitability of our home collected business.



Our motor finance subsidiary, Advantage Finance, has had a good half year with
profits before tax up by over 40% to £649,000.  Although the used car market is
not buoyant, Advantage's emphasis on strict credit control, increasingly
effective and focused collection procedures and its evolving internet based
links with key car dealers all point to profits growth in the full year.  This
is a well-managed company with an excellent future.  Moreover sensible cash
management has seen an improvement in Advantage's return on capital employed.
Further progress is anticipated.



The realignment of A E Holt, our small non-core hosiery subsidiary, as a
merchandising operation providing a link between low cost manufacturing
countries and the daily stock control requirements of European retailers is
going ahead.  If retained, Holt's results will show an improvement in the second
half.



The Group's financial position continues to improve. Particularly due to the
greater maturity of Advantage Finance, Group cash outflow for the past six
months was under a quarter of last years.  Interest cover is now over 8 times.
At a time of greater economic uncertainty this provides a stable base for
continued growth.





A M V Coombs
18 September 2002




INDEPENDENT REVIEW REPORT TO S & U PLC


Introduction

We have been instructed by the company to review the financial information for
the six months ended 31 July 2002 which comprises the profit and loss account,
the statement of total recognised gains and losses, the balance sheet, the cash
flow statement and related notes 1 to 6, together with the reconciliation of net
cash flow to movement in net debt.  We have read the other information contained
in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.  The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom.  A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed.  A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions.  It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit.  Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 July 2002.





Deloitte & Touche
Chartered Accountants
Birmingham


18 September 2002



CONSOLIDATED PROFIT AND LOSS ACCOUNT

Six months  ended 31 July 2002

                                                                  Six months       Six months        Financial
                                                                       ended            ended       year ended
                                                                     31.7.02          31.7.01          31.1.02
                                                                        £000             £000             £000
                                                   Note

Business transacted                                                   43,122           42,922           89,929

Turnover                                           2                  17,501           16,296           34,430

Group operating profit                             2/3                 4,849            4,847           10,397

Profit on sale of property                                               214
                                                                                            -                -

Net interest payable                                                   (597)            (641)          (1,191)

Profit on ordinary activities before taxation                          4,466            4,206            9,206

Tax on profit on ordinary activities                                 (1,340)          (1,267)          (2,775)

Profit on ordinary activities after taxation
being profit for the financial period                                 3,126            2,939            6,431

Preference dividends paid
      On 6% cumulative shares                                            (6)              (6)             (12)
      On 31.5% cumulative shares                                        (71)             (71)            (142)

Profit after preference dividends                                      3,049            2,862            6,277

Dividend on ordinary shares                                            (939)            (822)          (3,169)

Retained profit for the financial period                               2,110            2,040            3,108


Earnings per ordinary share                        4                   26.0p            24.4p            53.5p

Dividends per ordinary share                                            8.0p             7.0p             27.0p



All activities derive from continuing operations.

There are no recognised gains and losses for the six months ended 31 July 2002
and comparative periods other than the retained profit of  £2,110,000 (for the
period ended 31  July 2001- £2,040,000, and the year ended 31 January 2002
£3,108,000) shown above.




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