Car finance fuels growth at S&U

23rd Mar 2011 13:01

Home credit and car finance provider S&U increased its profit in 2010 thanks to a strong performance from the car finance business. Both sides of the business are adding customers but Advance Finance increased its profit contribution by more than one-third to £4.2m. This car finance business has improved its profit every year since it was launched in 1999. Home credit profit fell from £5.9m to £5.6m. Levels of activity by existing clients have been held back by economic uncertainty. New offices have been opened in Norfolk and Glasgow. Group revenues rose 5% to £48m, while pre-tax profit was 10% higher at £9.9m. Strong cash flow enabled S&U to repay £6m of medium-term debt and net debt was £21.7m at the end of the year. There is still plenty of headroom for additional lending. The total dividend for the year rose from 34p a share to 36p a share. Mike Thompson, who heads up S&U's Northern home credit business, has been with the company since 1985, has been appointed to the Board.