8th Apr 2020 12:16
(Alliance News) - S & U PLC on Tuesday reported a slight rise in its earnings for financial 2020, but warned that the Covid-19 outbreak may hurt demand and growth.
The stock was trading 1.5% higher at 1,645.00 pence each on Tuesday morning in London.
For the year to the end of January, the lender posted pretax profit of GBP35.1 million, up 2% from GBP34.6 million recorded for financial 2019. Revenue was up 8% at GBP89.9 million from GBP83.0 million the year prior.
S & U's motor finance business Advantage Finance recorded profit of GBP34.0 million, up from GBP33.6 million, as customer numbers rose to 64,200 from 59,000 and amounts receivable from customers increased by 8.5% to GBP280.8 million.
Property lending business Aspen Bridging reported pretax profit of GBP1.2 million, up 44% from GBP800,000 the previous year. Amounts receivable from customers was GBP21.0 million from GBP18.3 million.
A final dividend of 50p per share was declared, down from 51p the year prior. The final dividend amount takes the total dividend to 120p per share up from 118p.
S & U said that post period end, it replaced its GBP25 million facility maturing in March 2021 with a GBP20 million facility maturing in March 2025, adding that its GBP60 million evergreen revolving credit facility now matures on March 2023.
Looking ahead, the company said that demand and growth may slow due to disruption caused by the Covid-19 outbreak but said it believes its experience, market antennae, technical capabilities and firm financial base will allow it to adapt and deliver growth in future.
"The economic effects of Covid-19 and the government's measures to tackle it are both unpredictable and disruptive, and will be felt this year and in those to come. However, as these results demonstrate, S&U's long history of conservative management, a strong treasury position, the skills and flexibility of its workforce and its long-standing relationships with its brokers and loyal customers, will enable us to weather the storm," said Chair Anthony Coombs.
At the end of the period, S & U held cash of GBP656,000 and had loan facilities totalling GBP155 million.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
S & U