Trading Statement

20th May 2026

S&U plc 

("S&U" or "the Group")

 TRADING STATEMENT

S&U PLC, the specialist motor and property financier, today issues its trading update for the period 6th February 2026 to 30th April 2026.

As was seen in our latest annual report published on May the 13th, the turnaround in our fortunes which began last year continues apace. Trading in the first quarter of 2026/27 remains healthily above budget. This despite Trump's misadventures in the Middle East and Starmer's in the UK.

By contrast, S&U is building on success. Group profitability for the period is ahead of both last year and budget. Although transaction growth at both businesses has slowed during the period, unsurprisingly given consumer confidence and economic growth forecasts, applications for finance at both Advantage and Aspen, our motor and property finance businesses remain strong.

In turn this has meant improved net interest margins, especially at Advantage where this quarter, average lending rates are up by almost a fifth on Q1 last year to 15.3%. This trend has been matched by a very good performance on credit quality with repayment rates at Advantage averaging 92.4% against 89.1% last year. Collections received at Advantage in the quarter were £43.1m.

At Aspen, a recent upturn in applications, as traders returned to the market, portends a busier second quarter following a slow start to the financial year, as fears about the path of interest rates persist. Equally significant is the high quality of Aspen's loan book and the fact that capital receivables are now at £191m against £162m last year. This is characterised by a slightly longer-term profile, at higher blended margins.

Finally, the political antics mentioned above apart, the machinery of government and regulation in the UK appears to be operating in a calmer and more pragmatic way. Although the FCA's redress proposals for motor finance commission are now subject to judicial review, and are administratively cumbersome, they are likely to have little or no bearing on Advantage's future profitability. Government is slowly realising that future fiscal golden eggs from the finance industry mean that the goose cannot be taken for granted.

Advantage Finance

Advantage continues a powerful recovery in sales volumes with transactions this quarter up 63% on Q1 last year, despite recent downgrades to UK projected GDP. This should allow Advantage to slightly increase its current 10% share of the UK used-car finance market and reach its targeted 20% net receivables growth rate this year. These capital receivables are currently £392m against £348m last year. The 57,666 accounts thus financed are proving their worth in terms of affordability, reliable repayment and customer satisfaction. So far this year, bad debt write-offs have fallen by nearly 41%, as our excellent customer relations teams rediscover their poise after the regulatory interventions of the last two years. Customer repayments are 8% up on last year and Trustpilot customer satisfaction scores remain at 4.9 out of 5.

This welcome progress has been enabled by introducing a new credit scorecard which allows more detailed lending criteria to promote both growth and improved quality. The AI now embedded in

customer relations is improving productivity and maintaining responsible compliance with Consumer Duty.

Finally, the loyalty and expertise of our people at Advantage has been recognised by a plethora of nominations at the forthcoming credit industry awards. That our people have been nominated in no less than eight categories, is just recognition of Advantage's splendid workforce.

Aspen Bridging 

Given the becalmed UK residential market and the constant attacks on the UK rental market by a supposedly growth focused government, Aspen has produced credible results for the first quarter. Profit before tax is on budget and equal to last year's. In addition, recent weeks have seen a distinct upturn in both applications and deal numbers. Moreover, the quality of Aspen's book and of its customary underwriting is now coming into its own. Thus, the quality of Aspen's £190m of capital receivables is evidenced by only 15 of its 246 live accounts being beyond term. On this firm footing, we anticipate another record year from Aspen.

Given the growing proportion of two- and three-year loans offered by Aspen which appeal to ambitious landlords and property refurbishers, the quality of monthly repayments is crucial. Hence it is extremely promising that these Bridge-to-let collections and fees have reached £1m in the first quarter.

Funding

Borrowing for the Group for the first quarter ended at £252m, comfortably within current facilities of £330m. However, projected net receivables growth of 20% for each of the next three years may require an additional c£300m over that period. As a result, S&U's securitisation project is now being concluded. This will deliver medium-term funding at lower rates and equal flexibility. Terms have now been agreed, and we are about to commence the legal process with our selected financial partners. The details will be announced shortly.

 Commenting on the Group's performance and outlook, S&U Chairman, Anthony Coombs, said: 

"At this stage in the year, it is usually unwise to attempt year end predictions, particularly in such a fluid political and economic climate. Suffice to say that confidence in our aims for double digits growth and return on equity is exemplified by the resources we plan to make available, and the abilities of our people in achieving them."

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