S&U Trading Statement
5th August 2014
S&U PLC ("S&U" or "the company")
Half Year Update and Notice of Results
S&U, Britain's foremost specialist Motor Finance and Home Credit provider, today issues its trading update for the six months to 31 July 2014. The Company is pleased to announce that it continues to trade in line with market expectations and will announce its interim results on the 24th September 2014.
Motor Finance
Advantage Finance, our motor finance subsidiary, continues to trade at record levels. Advances are over £18m above last year for the period and credit quality is the best ever. Both result from continued refinements in under-writing and marketing and fully justify the additional £20m of investment made since the year end. This includes the purchase of expanded premises in Grimsby.
Home Credit
Improved consumer confidence and a greater market share have boosted our home credit business in the first half. Three new branches have been opened, the number of representatives has grown by 10% and this has been more than matched by increases in both advances and collections. Debt quality continues to improve and the business remains cash generative.
Transition to regulation by the Financial Conduct Authority is going smoothly and compliance reviewed; our full authorisation is expected to be approved on schedule in the middle of next year.
Funding Capital
Additional investment in both our motor finance and home credit businesses has seen gearing rise to around 70% from 39% a year ago. To accommodate this, and to maintain headroom, our long-standing banking arrangements have been augmented by longer-term facilities from new funders at AIB and M&G Investments. In addition, constructive discussions regarding the acquisition of a deposit taking licence continue with the Regulators.
Commenting on the Company outlook, Anthony Coombs, S&U Chairman, said:
"Current performance and future prospects in both our businesses are very encouraging. Our constant attention to the service we give every customer justifies our confidence in the future."
For further information, please contact:
S&U plc www.suplc.co.uk
Anthony Coombs, Chairman 0121 705 7777
Arden Partners plc
Chris Hardie/ Jonathan Keeling 020 7614 5929
Smithfield
Will Swan 020 7360 4900