S & U PLC Trading Statement (6235Y)
December 07 2017 - 1:00AM
UK Regulatory
TIDMSUS
RNS Number : 6235Y
S & U PLC
07 December 2017
7(th) December 2017
S&U plc
("S&U"or "the Group")
TRADING STATEMENT
S&U plc, the specialist hire purchase motor finance and
property bridging lender, announces its trading update for the
period from 1(st) August to 6(th) December 2017 and is pleased to
continue trading in line with expectations.
Motor Finance
Advantage Finance, our specialist motor finance provider based
in Grimsby continues its excellent progress. Despite recent
downgraded forecasts for the UK economy, Advantage applications for
finance have been very good. This has enabled Advantage both to
maintain this year's rate of transactions growth and to revise,
refine and further strengthen its under-writing model.
As a result, live customer numbers have grown to 53,000 from
49,000 at the half year; this means that net customer receivables
now stand at over GBP240m for the first time, compared to nearly
GBP227m in July.
Monthly collections and overall credit quality remain good.
Whilst rolling 12 months impairment to revenue has increased
slightly to 23.4%, this continues to be primarily due to overall
portfolio product mix.
Whilst the above underwriting refinements have seen a slight
reduction in loan approvals, appropriate in a more uncertain
economic climate, the introduction of Advantage's new e-signature
Dealfo system has been well received by both customers and brokers
and has led to an improvement in the approval-transaction rate.
Property Bridging Finance
Our pilot bridging operation, Aspen Finance, has made
significant progress and increased its loan book to GBP9m from
GBP2m in July. Margins and LTV are within budget and very early
repayment experience is good.
Aspen's growing reputation for efficient, consistent and prompt
service to the broking community, augers well for a successful
trial period concluding in H2 2018.
Funding
Having obtained further funding of GBP20m during the period, the
Group now has total available committed facilities of GBP115m,
sufficient to accommodate current growth at both Advantage and
Aspen. Further facilities will be arranged as required.
Commenting on the Group's performance and outlook, Anthony
Coombs, S&U Chairman, said:
"Whatever the current political uncertainty, particularly over
Brexit, and despite a forecast slowing economy, demand for
S&U's products remains very robust. Our selective lending and
continuous refinement of our under-writing underpin our debt
quality and produce steady sustainable growth.
"I am pleased to see this seemingly becoming more widely
recognised within the investing community; we will continue our
high standards of responsible lending and the excellent performance
which results from this."
For further information, please contact:
S&U plc: www.suplc.co.uk
Anthony Coombs, Chairman 0121 705 7777
Peel Hunt
Adrian Trimmings/Rishi Shah 020 7418 8900
Media and Investor Relations
Ged Brumby 020 3047 2527
This information is provided by RNS
The company news service from the London Stock Exchange
END
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