S & U PLC AGM Statement and Trading Update (4846O)
May 18 2018 - 2:00AM
UK Regulatory
TIDMSUS
RNS Number : 4846O
S & U PLC
18 May 2018
18 May 2018
S&U plc ("S&U" or "the Group")
AGM Statement and Trading Update
S&U, the motor finance and bridging lender, issues a trading
update for the period 1 February 2018 to 17 May 2018, prior to its
AGM being held today.
Trading at Advantage Finance, S&U's motor finance business,
remains strong following previous record expansion of both
customers and receivables. We continue to focus on debt quality
which will underpin the consistency and sustainability of
anticipated future profits. New loan transactions during the period
were at similar levels to last year's record performance.
Loan applications have reached record levels of over 80,000 per
month, of which c.25% are accepted and c.10% of acceptances are
transacted. The successful introduction of Advantage's paperless
Dealflo system has been well received by customers, improves
service and allows a greater focus on quality whilst maintaining
comparable volumes year-on-year. Advantage's net receivables book
has grown to GBP258m, which comprises over 56,000 customers, an
increase of 21% on last year.
Although rolling 12 months impairment to revenue has increased
slightly to 25.8% versus 24.6% at year-end, this is still
comfortably within the average for the previous ten years of 26.4%.
New customer quality and early repayment performance continues to
improve and we anticipate this will lead to a reduction in
impairment to revenue in due course. April's monthly collections
increased by 22% to GBP11.4m compared to the same month last
year.
Our bridging finance pilot, Aspen Bridging, continues to confirm
our confidence in its launch. Aspen's net receivables book has
increased to GBP14m from GBP11m at year-end, with early repayments
on track. Aspen's current profitability and growing reputation
amongst its broker partners bodes well for a successful future. We
look forward to updating the market with a full report on future
plans for Aspen in H2 2018.
Demand for the Group's products and the quality of our
businesses is reflected in a further GBP8.5m investment in the
first quarter, taking Group borrowing to GBP113.5m. An additional
GBP20m of banking facilities arranged in the period brought total
committed facilities to GBP135m and provides headroom for further
expansion.
Commenting on S&U's trading and outlook, Anthony Coombs,
S&U Chairman, said:
"Despite a slowing UK economy, the value used car and
residential markets in which we operate remain strong and
resilient. Our continuing focus on customer selection and excellent
service gives us great confidence for sustainable future
growth."
Enquiries:
S&U plc c/o Newgate Communications
Anthony Coombs
Newgate Communications
Bob Huxford, James
Ash,
Imogen Humphreys 020 7653 9848
Peel Hunt LLP
Adrian Trimmings, Rishi
Shah 020 7418 8900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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