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S & U says current trading remains in line

12 February 2016 07:38

S&U said current trading remains strong and in line with market views.

CURRENT TRADING

"Advantage Finance our motor finance business continues to produce record results," the company said in a statement.

"Live customer numbers are now around 32,500 up over 32% on the same time last year and budgeted new transactions for the year were exceeded comfortably. This reflects the investment during the past financial year of £27m into developing our motor finance business.

"New refinements to our already highly sophisticated underwriting systems have allowed Advantage to deepen our understanding of our traditional customers.

"This leads to even more opportunities for the higher margin, high quality business which has been Advantage's hallmark. As a result an expanded book of excellent quality is reflected in monthly collections which are now approaching £7m."

ACQUISITIONS

"We continue to examine potential acquisition and start up opportunities in a rigorous and painstaking way and have added to our development team.

"The recent reverses in stock market values have confirmed our impression of unrealistic pricing last year and may lead to better value in the coming months.

"Our search continues, but against a background of continuing investment in Advantage, and our determination to maintain shareholder returns in areas where we have experience and expertise."

FUNDING AND TREASURY

"Notwithstanding the payment to shareholders of £14.9m by way of a special dividend last November, the financial position of the Group remains very strong.

"Net borrowings of just £12m are covered by committed facilities of £70m leaving significant headroom for the right acquisition and organic growth."

DIVIDEND

"The strength of current trading, future prospects and the Group's robust treasury position justifies the Board's approval of a second interim dividend of 23p per ordinary share (2015:19p) on Friday 18th March 2016 to holders on the share register on the 26th February 2016. The first and second dividends paid this year will therefore total 43p against 36p last year an increase of 19%."

Story provided by StockMarketWire.com

Related Company: SUS

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