S&U reports strong half year

22nd Sep 2011 15:20

Home credit and car finance provider S&U has announced strong results for the six months to the end of July. Revenue got a 5% boost on a like-for-like basis to £24.8m, while pre-tax profit reached £6.4m, up from £5.4m for the same period the previous year. The company said: "Whilst our overall customer numbers continue to grow at a sensible and sustainable pace, the faltering UK recovery demands that we continue our focus upon the quality of our debt, our collections and our consequent cash flow. Collections are 5% ahead of last year on capital receivables up by 3%. Again, our cash position continues to strengthen. Group gearing is now 38% against 43% at year end and 51% a year ago.Basic earnings per share grew 6.7p to 39.9p on a like-for-like basis and the board declared an interim dividend of 11p per share. "Despite the faltering UK economic recovery, results and our current trading give real cause for optimism for the future. But we are never complacent. We intend to use the firm base we have established as a spring board for further expansion in both divisions and also in related areas of expertise; we will continue to work to ensure these efforts bear fruit." The firm was keen to point out that it had achieved its highest ever loan transactions, collections and pre-tax profits during the period, and also emphasised that it has an "excellent" debt quality. The share price rose 2.86% to 630p by 15:47.NR