6th Feb 2019 10:02
LONDON (Alliance News) - S&U PLC on Wednesday hiked its annual payout after reporting a strong performance in both of its divisions despite political and consumer uncertainties.
The stock was trading 3.5% higher on Wednesday at 2,183.40 pence a share.
The motor finance and property bridging lender said its trading remains satisfactory and it expects results for the year to the end of January in line with consensus forecasts.
S&U's Advantage Finance, a motor finance subsidiary, continues to produce record profit, the company said, while Aspen, its new property bridging operation, also continues to make good progress.
The number of new Advantage finance agreements for the financial year remain at their "second highest ever" level and applications for motor finance remain strong, the company highlighted.
Used car values and volumes, including those of modern diesel vehicles, continue to outperform the market both in the franchise dealer and independent retailer sectors.
In addition, Aspen bridging loan net receivables currently stand at just over GBP18.0 million, S&U said, against GBP11.2 million a year prior.
As a result, the company expects Aspen to make a useful contribution to profit in its current financial year.
S&U declared second interim dividend of 35p per share, taking the total payout to 67p, up from 60p paid the year before.
"Over the past 25 years, S&U has consistently demonstrated its ability to adapt to the kinds of economic and political uncertainty we all currently face," said Chair Anthony Coombs.
"I am therefore confident that this sound experience, our strong financial base and the skills of those who work for us will serve to underpin the group's success in the future," added Coombs.
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