Interim Management Statement

24 May 2012

S & U plc ("S&U" or "the Company")

Interim Management Statement

S&U, Britain's foremost niche home credit and motor finance provider, today issues an interim management statement for the period from 1 February 2012 to 23 May 2012, ahead of its Annual General Meeting being held later today.

Home Credit

Our Home Credit division, Loansathome4U, continues to trade well following a successful Christmas. Whilst the current economic turbulence demands caution from both lender and customer, our customer numbers are up just under 4% on last year. Sensibly, and continuing the trend of the past two years, such customer caution has led to an appetite for shorter term loans, meaning the book debt is only slightly above last year.

Most important, collections are up over 7% on last year and credit availability is now at a record level. Unsurprisingly, the sluggish economy has been reflected in a slight increase in impairment on the very low levels of the first quarter of last year. However, the overall and continued improvement of book debt quality should see this reversed in the rest of the year.

Our new acquisition Norton Finance has been successfully integrated into the business and we continue to pursue acquisitions of similar quality. Home Credit administrative expenses are within budget.

Motor Finance

In a slightly more competitive market, Advantage continues its outstanding progress. Transactions, revenues and collections are all above budget and productivity per employee is at a record level. Gross receivables are 11% higher than last year and Advantage's unmatched expertise in underwriting and customer relations has meant that these receivables are of better quality than ever. As a result, impairment is both below budget and the level of last year. Administrative expenses remain within budget.

Funding and Capital

The Groups treasury position remains strong as borrowings have fallen to £18.2m (May 2011: £20.2m). Home Credit remains strongly cash generative whilst, as anticipated, further funds are being invested in the continued growth of the Advantage Motor Finance book.

Outlook

Whilst current trends for the Group's trading are encouraging, the wider macroeconomic environment is not. Hence our optimism is tempered with caution. Nevertheless, continuing to work closely with every home credit and motor finance customer, we are confident of the year ahead.

Commenting, Anthony Coombs, S&U Chairman, said:

"In times of continuing uncertainty our focus on the service we give every single S&U customer continues to reap dividends. We look to the future with pragmatism and confidence."

For further information, please visit www.suplc.co.uk or contact: 

Anthony Coombs, Chairman 0121 705 7777 / 07767 687 150

Arden Partners plc - Broker and Financial AdviserAdrian Trimmings / Jamie Cameron 020 7614 5920Smithfield - Media and Investor RelationsWill Swan / Rebecca Whitehead 020 7360 4900