Wholly focusing its efforts on motor finance did not stop S&U (SUS) from propelling its loan book to a record high during the six months to the end of July. New customers exceeded 10,000 for the first time in the group's history, up more than half on the same time the previous year. However, management is planning to branch out by offering bridging loans secured on property from the final quarter of the current financial year. Chairman Anthony Coombs says the lender plans to invest around £20m in the new business during the first 15 months of its life, which will leverage the group's underwriting experience. The company would use its "usual caution and exacting standards", he wrote separately in the results statement.
Its core Advantage Finance business received a record level of motor finance applications, up 58 per cent on 2015. Live customer numbers increased to 40,000, up a third on last year, while receivables hit the £200m mark. Despite this strong growth, gearing reduced to 29 per cent from 45 per cent a year ago. Post-period-end, management agreed a £15m increase in its committed funding facilities, which now stand at £85m.
Analysts at Shore Capital forecast adjusted pre-tax profit of £26.4m and diluted EPS of 175p for the year to January 2017.
S&U (SUS) | ||||
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ORD PRICE: | 2,495p | MARKET VALUE: | £299m | |
TOUCH: | 2,490-2,534p | 12-MONTH HIGH: | 2,612p | LOW: 1,992p |
DIVIDEND YIELD: | 3.2% | PE RATIO: | 16 | |
NET ASSET VALUE: | 1,094p | NET DEBT: | 29% |
Half-year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2015 | 20.4 | 8.8 | 58.3 | 20 |
2016 | 28.3 | 11.9 | 79.2 | 24 |
% change | +39 | +35 | +36 | +20 |
Ex-div: 20 Oct Payment: 11 Nov |