24th Sep 2019 09:31
(Alliance News) - Motor finance firm S&U PLC on Tuesday expressed confidence after achieving growth despite continued economic and political problems in the UK.
For the six months to July 31, S&U reported a pretax profit of GBP17.1 million, 3% higher than the year before and "in line" with expectations.
Revenue for the period grew by 7% on the year before to GBP47.7 million, and S&U has increased the interim dividend by 6% to 34 pence a share.
"These results clearly demonstrate the resilience and dynamism of our business, and our ability to perform irrespective of the unprecedented uncertainty surrounding the British economy and consumer markets," said Chair Anthony Coombs.
"These strong and well-established foundations give me every confidence for a resumption of usual rates of growth, whatever the outcome of the current maelstrom in Westminster."
S&U's motor finance unit is called Advantage Finance Ltd, which delivered a 20th year in a row of profit growth, with pretax profit up 1.8% to GBP16.6 million. Customer numbers were up 6.9% to a record 62,000.
S&U said sales across the new car market in the UK have fallen 3.4% so far in 2019, but the used car market, on which S&U focuses, has been "relatively" immune from the economic challenges which are reducing new car sales.
In a separate statement on Tuesday, S&U said Guy Thompson, who founded Advantage Finance, will be retiring at the unit's chief executive in 2020. He will be replaced by Graham Wheeler, who will join on October 1.
Wheeler, S&U said, used to lead Volkswagen AG's UK motor finance business, and later became director of global financial services at Jaguar Land Rover.
Looking ahead, S&U Chair Coombs said: "The apparent meltdown in Westminster, and the economic paranoia and uncertainty it is creating, is unprecedented in my forty odd years in business and politics.
"It is a real testament to the resilience and experience of all at S&U, that despite this, I believe the prospects for continued sustainable growth for the group are still more encouraging than they were a year ago."
S&U shares were 1.9% higher on Tuesday morning in London at a price of 2,140.00p each.
By George Collard; [email protected]
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