10th Aug 2021 11:38
(Alliance News) - S&U PLC on Tuesday reported that it was trading well and was ahead of expectations in terms of profitability, collections and book debt quality.
The stock was trading 4.0% higher at 2,933.50 pence each on Tuesday morning in London.
The Solihull-based motor and property finance company said new business at its Advantage Finance unit was gradually increasing, "month by month, to nearer normal levels". The result will lead to a "significant increase" in the car finance business's half year profit, comfortably beating budget, S&U noted.
S&U's property lending business Aspen Bridging has continued the encouraging trends reported in May, with net receivables more than tripling to just under GBP58 million against GBP18.5 million a year ago. Book quality and repayments continue to be very good, the company stated.
"As Britain gradually emerges from the effects of Covid, S&U is demonstrating by its debt quality, collections performance, customer service and product improvements, the inherent strength and potential future profitability of the group. The challenge now is to grasp these opportunities for new growth. I am confident that we will do so," said Chair Anthony Coombs.
S&U currently has borrowings levels of GBP116 million, up from GBP110 million three months prior.
By Will Paige; [email protected]
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