S & U Plc
S & U Plc is principally engaged in the activity of consumer credit and car finance throughout England, Wales and Scotland. The Company’s segment includes consumer credit, rentals and other retail trading, and car finance. S & U's wholly owned subsidiaries include S D Taylor Limited, which is engaged in consumer credit, rentals and other retail trading, and Advantage Finance Limited, which is engaged in car finance.
S&U sees full-year results in line with market expectations, to pay 2nd interim div
In a year-end update ahead of its full year results, home credit and motor finance specialist S&U (LSE: SUS) said it is trading well and that results are expected in line with market expectations.
In light of the company’s performance and the upcoming tax changes in April 2010, S&U has approved a second interim dividend of 15p and it intends to pay a final dividend of no less than 8p in June.
In the period from 8 December 2009 to 31 January 2010, the Home Credit division exceeded expectations with trading and profitability reported to be very satisfactory. During the same period in the Motor Finance division, the Advantage unit returned very buoyant sales compared to the previous year.
"Despite the uncertain economic and political outlook, S&U's consistency of approach both strategically and in its relationship with its customers, bodes well for continued progress throughout the group”, S&U Chairman Anthony Coombs said, “Current trading in both our home credit and motor finance divisions reflects these promising trends. In addition, we are actively pursuing expansion within our existing markets this year through acquisitions. These efforts will be reflected in both S&U's profitability and in the returns we make to shareholders".
S&U said its balance sheet continues to strengthen as group borrowings reduced by £5m since the end of last year despite the seasonal funding trends, which required increased financing to fund customer loans in the Christmas period. The company’s gearing continues to be lower against comparatives and is currently 57% against 74% two years ago.
According to S&U, the Home Credit business exceeded expectations with sales of both loans and vouchers driving a very satisfactory period. The company also expanded its product range recently and it has a strong platform to make further progress in the current financial year.
The Advantage motor finance business contributes approximately 30% of overall group revenue and during the final two months of the year its buoyant sales performance led S&U to believe that transaction growth will return to growth in 2010. In addition to its sub-prime business, Advantage has now extended its product range into non-prime lending and the company said its enlarged product range has been successful. Furthermore, the operating division maintained margins and according to S&U the initial cash returns look extremely promising.
S&U will announce its results for the year ending 31 January 2010 on 24 March 2010.
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