Trading Statement

RNS Number : 8685Q

S & U PLC

11 August 2010

 



11 August 2010

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

Trading Update

Notice of Results

S&U, Britain's foremost niche home credit and motor finance provider, today announces a trading update for the six months to the 31^st July 2010. The Company is please to announce that it is trading in line with market expectations and intends to issue its interim results on 23 September 2010.

Home Credit

Loansathome4u, our home credit business, has maintained its progress by increasing revenues by 2% in the period against last year and by adding an additional 4000 customers versus a year ago. Collections have remained robust increasing by 3.5% on last year whilst impairment charges have remained stable and well controlled. These trends reflect the way in which our customers value, and have an appetite for, the service and loan finance we offer, despite the current economic uncertainty and the coalition Government's impending Welfare Review. We are therefore confident that our traditionally tight control over administrative expenses and our cautious approach to underwriting will now prove their worth in more austere times. We remain optimistic and continue to expand our business.

 Motor Finance

Advantage, our motor finance business, has more than maintained the excellent start it made to the financial year. In a market where competition remains subdued, Advantage's growing reputation has seen revenues increase by nearly a quarter on last year. Margins continue to improve whilst the quality of both new customers and the book as a whole is very encouraging, as evidenced by three consecutive months of record collections in this period. Impairment levels reflect this. We are optimistic about Advantage's continued progress.

Funding and Capital

Strong trading must be reflected in strong cash flow and S&U's financial position confirms this. During the period we have paid off £4m worth of loans, reduced our overall borrowings, both absolutely and relative to last year, and seen gearing fall below 53%. Our headroom for both organic expansion and acquisitions, as well as shareholder returns, has further increased.

Outlook

Our current trading, stable and expanding customer base and a stable regulatory environment under a new Government, as well as a balanced and benign OFT High Cost Credit Review, all make for optimism for the current year's outturn.

Commenting, Mr Anthony Coombs, S&U Chairman, said "Particularly in these uncertain times, attention to detail and close relationships with our loyal customers bring their own reward. Improving standards and our current trading both inspire confidence for the future".

Anthony Coombs

Chairman

For further information, please contact:

S&U plc                                                                                                                  www.suplc.co.uk 

Anthony Coombs, Chairman                                                                                      0121 705 7777

Charles Stanley Securities

Mark Taylor / Dugald  Carlean                                                                                 020 7149 6000

Smithfield     

Rupert Trefgarne/ Rebecca Whitehead                                                                     020 7360 4900

 

END

 

 

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