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Trading statements

S&U says trading motor finance subsidiary continues at record levels

04 August 2017 07:09

S&U reported trading in its motor finance subsidiary (Advantage) continued at record levels between 18 May and 31 July 2017.

New loan transactions are up by 20% and monthly collections were 27% higher than a year ago. Monthly collections hit a record £10m from nearly 49,000 customers in July and debt quality continued to be good.

Despite recent speculation as to the strength of the economy and its possible effect on the car finance market, Advantage saw a steady increase in the number of quality applications it receives.

Advantage is not involved in the PCP market which has recently come under public scrutiny.

Advantage's average loan size is just £6,200 so should changes in the PCP market have a knock-on effect upon car residual values generally, this would have only a marginal effect upon S&U's business.

Aspen Bridging is proceeding cautiously and gradually establishing itself in the bridging market, and gaining traction in attracting good quality deals.

Funding

Committed medium term funding facilities were increased to £95m since the end of the last financial year. This gives sufficient headroom for our anticipated growth and will be reviewed again as our businesses develop.

Chairman Anthony Coombs said: "S&U's performance and prospects remain healthy despite the current sentiment regarding the British consumer and motor finance sector.

"Our robust and well established under-writing processes, and impeccable 17 year track record at Advantage position us to trade well through any foreseeable macro-economic weakness, whilst allowing us to take advantage of the clear opportunities for steady and sustainable growth which we see at present."

Story provided by StockMarketWire.com

Related Company: SUS

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