5th Aug 2015 08:59
LONDON (Alliance News) - Motor finance company S&U PLC on Wednesday said its Advantage Finance business has continued to trade well in the first half of its current financial year, as sales fell in its recently-sold home credit business.
S&U said gross receivables in its motor finance business, Advantage Finance, have increased to GBP200 million for the first time. The company said total transaction volumes are slightly down year-on-year in the half to the end of July, but has picked up in recent weeks and should still hit record levels for the full year.
Loansathome4u, the home credit business S&U has agreed to sell to Non-Standard Finance PLC for GBP82.5 million, saw sales drop by 9% in the first half, though its profitability is still in line with previous years.
"The decision to sell our home credit division which has formed the ballast of our business for so long was wrenching and difficult, but we believe the right one," said Anthony Coombs, S&U's chairman. "This transaction heralds an exciting new era for S&U in which we will continue to develop as an innovative and responsible specialist lender of the highest quality."
Shares in S&U were down 5.0% to 2,337.50 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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