S&U cautiously confident

10th Dec 2010 07:20

Consumer and motor finance provider S&U said it continued to trade in line with market expectations in the period from 1 August to 9 December 2010 and remains cautiously confident about future trading. The Solihull based group, which provides loansathome4u home credit and motor finance Advantage, acknowledged the challenges posed by an uncertain economic recovery and difficult consumer climate but remained upbeat.Greater borrowing caution and prudent underwriting has slightly restrained sales at its home credit division but "nevertheless given us an excellent platform in terms of credit available for the Christmas period," the group said in a company statement."Credit available is historically high and, notwithstanding the current disruptive weather, we anticipate a good Christmas," it said.Its motor finance operation Advantage continues to head towards a record year despite a slight slowdown in transactions growth towards the end of the period.Net borrowing was reduced by over £2m in the period during and group borrowings are now at the lowest level since 2001. "As a result we have significant scope, within existing facilities, for "acquisition and organic growth as opportunities arise," it added.Chairman Anthony Coombs said, "Much will depend upon Christmas and its aftermath, but our solid trading and financial base give every cause for cautious confidence."