S & U PLC Trading Statement (5406W)
February 10 2017 - 1:00AM
UK Regulatory
TIDMSUS
RNS Number : 5406W
S & U PLC
10 February 2017
10(th) February 2017
S&U plc
("S&U", "the Company" or "the Group")
YEAR END TRADING UPDATE
S&U plc, the motor finance and specialist lender, today
issues a trading update for the period from its Trading Statement
of the 8th December 2016 to the Company's year-end on the 31st
January 2017.
The Company is again pleased to announce that trading has
remained strong and in line with market expectations; its final
results will be announced on 28(th) March 2017.
Current Trading
Advantage Finance, our motor finance business, finished a record
year very strongly. Cash collections in the period exceeded a
buoyant 2016 by 31%, whilst both transaction numbers and loan
advances comfortably beat last year. This year Advantage achieved
20,000 new transactions for the first time, beating the previous
record by nearly 5,000 deals; it now has a record 43,000 live
customers.
Loan quality remains good and, as reported in our last Trading
Statement, is both stable and within our expectations. This fully
justifies the additional GBP33million invested in the business in
the year just ended.
Within the last quarter, Advantage has received confirmation of
its full licence authorisation from the FCA and has continued to
introduce further refinements to its renowned underwriting and book
analysis capabilities.
Aspen Bridging
As anticipated in December, our Aspen bridging finance operation
has now received all necessary approvals, and we are pleased to
announce it has now opened for business. We confidently expect a
successful pilot over the next fifteen months.
Funding and Treasury
At the year end the Group has borrowings of GBP49m allowing good
headroom within our total committed facilities of GBP85m. We
anticipate concluding further loan facilities as our businesses
require.
Dividend
The Group's current trading and future prospects have led to
your Board approving a second interim dividend of 28p per ordinary
share (2016: 23p). This will be payable on 17(th) March 2017 to
holders on the share register on the 24th February 2017. Together
with the first dividend paid in November of 24p per share this will
total 52p per share against 43p last year and 36p two years ago.
These increases are consistent with our aim of returning to twice
covered dividends over time.
Commenting on the Group trading and outlook, Anthony Coombs,
Chairman of S&U PLC said:
"Within a robust domestic economy, a stable regulatory
environment and a competitive market, we are confident in the
Group's ability to continue to grow at a consistent and sustainable
rate, and in the shareholder value that implies."
For further information, please contact:
S&U plc www.suplc.co.uk
Anthony Coombs, Chairman 0121 705 7777
Broker & Financial Advisor
Chris Hardie Arden Partners 0207 614 5917
Media and Investor Relations
Ged Brumby Smithfield 0207 903 0674
This information is provided by RNS
The company news service from the London Stock Exchange
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February 10, 2017 02:00 ET (07:00 GMT)