Results For Year To 31.01.02

S & U PLC 11 April 2002 S&U PLC - Providers of Consumer Credit and Motor Finance PRE-TAX PROFITS UP 21% AT £9.2M (£7.6M) ON TOTAL BUSINESS TRANSACTED £89.9M (£86.5M) TOTAL DIVIDEND UP 14.9% AT 27p (PREVIOUS YEAR'S INCREASE 11.9%) TARGET FOR CURRENT YEAR TO REPLICATE IN THE NORTH THE GROWTH OF HOME COLLECTED CREDIT BUSINESS ACHIEVED IN THE SOUTH MORE SIGNIFICANT GROWTH PATTERN AND NEW RECORDS EXPECTED THIS YEAR IN ADVANTAGE FINANCE LTD 'DEMAND FOR CREDIT FROM BOTH EXISTING AND NEW CUSTOMERS REMAINS STRONG' CURRENT YEAR VIEWED WITH CONFIDENCE.....'THE FORTUNES OF THIS GROUP WILL GO FROM STRENGTH TO STRENGTH' CHAIRMAN'S STATEMENT Results The operating profit for the year has increased to £10.4m from £8.4m for the previous year. Pre-tax trading profits for the year are £9.2m as against £7.6m, an increase of 21%. Earnings per share rose from 43.9p to 53.5p. Business transacted at £89.9m compares favourably with £86.5m for the comparable period. Credit charges and commissions' turnover is £34.4m, up from £31.9m. The Board is recommending a final dividend of 20p per ordinary share, making 27p per share for the year, compared to 23.5p last year, an increase for the year as a whole of 14.9% (last year was 11.9%). On this basis, at the average market price for January 2002 of 416.0p, the yield would be 6.5% with an improved cover of 2 times. Shareholders have enjoyed dividend growth in every year since before the company's 50th anniversary in 1988. Home Collected Credit The main growth in business and in profits came from the southern half of Britain, but all areas contributed to the improvement in both sales and profits in the year. Margins were improved through product mix and debt quality. There is no good reason why the growth in the south should not be replicated in the north. This will be a target for this coming year. Motor Car Finance - Advantage Finance Limited This business is soon to be three years old, so has not yet reached the contract maturity point when the bulk of first month contracts come to the end of their term. It set off in life at a cracking pace with an excellent team. This year we have purposely slowed the growth somewhat. The results were up on the previous year despite a hard marketplace. This current financial year should see a more significant profit growth pattern with no further capital injections. We are determined that the quality of debt criteria should be totally maintained. The Board On the 14th of February 2002, Bob Fisher, our Finance Director retired. Mr Fisher, 64, joined S&U in 1974. He has always been a wise counsel in our deliberations. We are sorry to see him step down, but wish him very well for his retirement. Fortunately for us he had a gift for picking good recruits and we have excellent continuity in the finance function. Pending the appointment to the board of a new Finance Director, David Maiden, our Company Secretary, who has worked since 1974 with Bob on the financial side of the business, is to be the group's Chief Financial Officer, in addition to his current position. We are already blessed with two chartered accountants still on the board in addition to those in our management team. In addition, my son, Fiann Coombs has become a non-executive director of the company. Mr Coombs, 32, is an economic analyst and has recently contributed a six-months' review of the company's operations which provided the background to his appointment. He will of course resign and offer himself for election at the Annual General Meeting. Staff Every company is only as good as the quality and dedication of its staff. We are fortunately well blessed. We have a loyal and dedicated team and on your behalf I would like to take this opportunity to thank them most warmly for their contribution. Looking Forward Last year I said that I hoped to see a further convergence of S&U's price earnings ratio and that of the sector generally in the year ahead. There has been some movement in that direction, but by no means enough to recognise the value of the shares. The board continues to work with the company's broker, Brewin Dolphin, to improve recognition of value. The Group's balance sheet is in good form. We have all the funds we require to make the growth we plan. Funds are made available through our profits growth and our bankers, with whom we work to ensure that they understand our business. We work in a business that we know well and understand clearly with good management and committed staff. We plan to continue the successful expansion in the 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 motorcar hire purchase by Advantage through carefully targeted underwriting will continue to provide a growing opportunity for expansion and profit. The Board is confident that the company will achieve new records in this new financial year. I have remarked before that the business has defensive qualities when the global economic scene is uncertain. Over the past year the global scene has continued uncertain and worse, but your company has had a year that has surpassed our budgets. The British public has continued to go shopping. We look forward to this current year with hopeful confidence that the economy will improve and with it the fortunes of this group will go from strength to strength. Enquiries: Derek Coombs Anthony Coombs Chairman Managing Director S&U PLC S&U PLC Tel: 0207 352 6709 Tel: 0121 705 7777 Simon Preston Financial Public Relations Limited Tel: 0207 353 8906 CONSOLIDATED PROFIT AND LOSS ACCOUNT Year ended 31 January 2002 2002 2001 As restated £000 £000 BUSINESS TRANSACTED 89,929 86,482 ====== ====== TURNOVER 34,430 31,892 Cost of sales (3,653) (3,962) ------ ------ Gross profit 30,777 27,930 Administrative expenses (16,080) (14,989) Provision for doubtful debt (4,300) (4,492) ------ ------ OPERATING PROFIT 10,397 8,449 Profit on sale of fixed assets - 113 Net interest payable (1,191) (942) ------ ------ PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 9,206 7,620 Tax on profit on ordinary activities (2,775) (2,319) ------ ------ PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 6,431 5,301 Dividends paid and proposed including amounts in respect of non equity shares (3,323) (2,912) ------ ------ RETAINED PROFIT FOR THE FINANCIAL YEAR 3,108 2,389 ====== ====== Basic Earnings per Ordinary share 53.5p 43.9p ====== ====== Dividends per Ordinary share 27.0p 23.5p ====== ====== The consolidated profit and loss account for the year ended 31 January 2001 has been restated for the adoption of FRS 19 (see note 3). 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 31 January 2002 2002 2001 £000 As restated £000 FIXED ASSETS Tangible assets 2,768 2,873 ------ ------ CURRENT ASSETS Amounts receivable from customers (including £12,578,000 falling due after one year (2001: £9,737,000)) 59,292 49,574 Other current assets 1,232 1,592 ------ ------ 60,524 51,166 CREDITORS: amounts falling due within one year (14,942) (13,797) ------ ------ NET CURRENT ASSETS 45,582 37,369 CREDITORS: amounts falling due after more than one year (15,000) (10,000) ------ ------ TOTAL NET ASSETS 33,350 30,242 ====== ====== CAPITAL AND RESERVES 33,350 30,242 ====== ====== Statistics 31-Jan-02 31-Jan-01 Operating Profit/Business Transacted 11.6% 9.8% Profit Before Taxation/Net Assets 27.6% 25.2% Net Borrowing/Shareholders Funds 69.5% 58.9% CONSOLIDATED CASH FLOW STATEMENT Year ended 31 January 2002 2002 2001 £000 £000 £000 £000 Cash flow from operating activities 1,750 (1,633) Returns on investments and servicing of finance Interest received 12 4 Interest paid (1,116) (902) Preference dividends paid (78) (230) ------ ------ Net cash outflow from returns on investments and servicing of finance (1,182) (1,128) Taxation (2,430) (2,054) Capital expenditure and financial investment Purchase of tangible fixed assets (708) (692) Proceeds of sale of fixed assets 74 226 ------ ------ Net cash outflow for capital expenditure and financial investment (634) (466) Equity dividends paid (2,876) (2,583) ------ ------ Cash outflow before financing (5,372) (7,864) Financing Increase in loans from banks 5,000 10,000 ------ ------ (Decrease)/increase in cash in the year (372) 2,136 ====== ====== NOTES TO THE PRELIMINARY ANNOUNCEMENT Year ended 31 January 2002 1. This summary of results are not statutory accounts within the meaning of section 240 of the Companies Act 1985. The statutory accounts for the year ended 31 January 2002 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. 2. A final dividend of 20.0p per Ordinary Share is proposed, payable on 2 July 2002, with a record date of 7 June 2002. 3. The financial information within this report has been prepared in accordance with applicable accounting standards. Since the preparation of the previous year's financial statements, the group has adopted the recommendations set out in Financial Reporting Standard ('FRS') 17, FRS 18 and FRS 19. The transitional requirements of FRS 17 have been adopted in the current period. There is no effect on the current and prior periods as a result of adopting FRS 18. The adoption of FRS 19 Deferred Taxation' has required changes in the method of accounting for deferred tax assets and liabilities. As a result of these changes in accounting policy the comparatives have been restated as follows: Profit Deferred and loss tax account Shareholders' asset reserve funds £000 £000 £000 The Group 2001 as previously reported - 25,233 30,106 Adoption of FRS 19 at 1 February 2000 50 50 50 During the year ended 31 January 2001 86 86 86 ---- ------ ------ Adoption of FRS 19 at 31 January 2001 136 136 136 ---- ------ ------ 2001 restated 136 25,369 30,242 ==== ====== ====== 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 (2001: 11,737,228). There are no dilutive shares. 5. The figures shown for the year ended 31 January 2001 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. 6. The 2002 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. This information is provided by RNS The company news service from the London Stock Exchange

Companies

S&U (SUS)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today