20th May 2014 10:52
LONDON (Alliance News) - S&U PLC Tuesday said trading has been in line with expectations, with growth in its motor finance division and its home credit division.
In a statement, the home credit and motor finance lender said net receivables between February 1 and May 19 in its motor finance division grew by 49% on the corresponding period last year. S&U said its products have been "well received" by the business's brokers, and margins have been maintained. S&U said collections "regularly" exceed GBP4.0 million a month, while debt quality is "at its best ever."
S&U said trading in its home credit division has been "very promising" as sales and collections exceed budget. Customer numbers are over 6,000 up on last year, particularly in the north of England and Scotland due to consolidation elsewhere in the home credit industry. S&U said the influx of new customers has led to "record credit availability" throughout the business, but said the expansion has has seen a rise in costs. Three new branches in Bridgend, Liverpool and Greenock have been established. S&U said their trading has been satisfactory.
"Recovering consumer confidence and an improving economy provide a firm platform for the expansion of our business. This is reflected in our trading during the first quarter and we are confident of further progress throughout the year," Anthony Coombs, chairman, said in a statement.
Meanwhile, S&U said it is putting into place arrangement that will enable it to meet the demands of the UK Financial Conduct Authority, which became responsible for regulating its businesses at the start of April.
S&U said it is continuing to "actively explore" a deposit-taking licence.
S&U shares were Tuesday quoted at 1,889.66 pence, down 0.2%.
By Samuel Agini; [email protected]; @samuelagini
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