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S&U upbeat after transactions improve post-election
11th Feb 2020 10:10
(Sharecast News) - S&U said its prospects were good as the specialist lender reported an improvement in transactions following December's general election.
In an update, S&U said trading at both its businesses picked up in the period from 10 December to its financial year end on 31 January. Annual results will be in line with management expectations, it said.
The shares rose 5.9% to 2,371.85p at 0932 GMT.
S&U's Advantage motor finance arm has benefited from stable used-car prices and a record number of loan applications. Customer numbers are at a record 64,200 and net receivables are up 8% to ?280m.
The Aspen property bridging loans business is still suffering from slow borrower repayments but these have improved recently with ?15m repaid in the final quarter, S&U said.
Profit growth slowed in 2019 but the company has decided to increase its dividend. The second interim dividend this year will rise to 36p a share from 35p in 2019, taking the first two dividends to 70p - up 4.5%. Group borrowings fell to ?118m at the end of January from ?132m at the start of the period.
Chairman Anthony Coombs said: "Although the UK may not yet have reached the sunlit uplands of renewed growth and consumer confidence which the general election result makes possible, S&U's prospects for the year ahead are good. From a sound financial base, S&U is very well placed to take advantage of this in our habitually responsible and sustainable way."
In an update, S&U said trading at both its businesses picked up in the period from 10 December to its financial year end on 31 January. Annual results will be in line with management expectations, it said.
The shares rose 5.9% to 2,371.85p at 0932 GMT.
S&U's Advantage motor finance arm has benefited from stable used-car prices and a record number of loan applications. Customer numbers are at a record 64,200 and net receivables are up 8% to ?280m.
The Aspen property bridging loans business is still suffering from slow borrower repayments but these have improved recently with ?15m repaid in the final quarter, S&U said.
Profit growth slowed in 2019 but the company has decided to increase its dividend. The second interim dividend this year will rise to 36p a share from 35p in 2019, taking the first two dividends to 70p - up 4.5%. Group borrowings fell to ?118m at the end of January from ?132m at the start of the period.
Chairman Anthony Coombs said: "Although the UK may not yet have reached the sunlit uplands of renewed growth and consumer confidence which the general election result makes possible, S&U's prospects for the year ahead are good. From a sound financial base, S&U is very well placed to take advantage of this in our habitually responsible and sustainable way."