S&U profits surge in return to more normal trading

29th Mar 2022 09:45

(Sharecast News) - Specialist motor lender S&U reported profit before tax of £47m in its preliminary results on Tuesday, up from £18.1m year-on-year.

The London-listed firm said that made for an average over the two years of the pandemic of £32.6m, compared to £35.1m in the 2020 financial year.

Revenue was ahead 5% for the 12 months ended 31 January to £87.9m, while group amounts receivable from customers at year-end increased 15% to £322.9m.

The group impairment charge came in at £4.1m, down from £36.7m year-on-year due to less use of Covid-related provisions, lower motor finance bad debt attrition and good collections in both businesses.

Basic earnings per share rose to 312.8p from 120.7p, and the board declared a final dividend of 57p per share to be paid on 8 July, up from the 43p final distribution last year.

Net Borrowings totalled £113.6m at year end, up from £98.8m, with the company's gearing remaining broadly stable at 54.9%, compared to 54.6% in the 2021 financial year.

"Like all successful businesses with a long history, S&U recognises that it must tailor its products and services and trim its operational tack to its economic, political and regulatory environment, over which it may have little control but to which it can nevertheless adapt and therefore thrive," said chairman Anthony Coombs.

"Whilst this year's resounding results clearly show our, and most importantly our loyal people's, ability to do this, their work in preparing and priming the group for both the opportunities and challenges now facing all of us, gives me a quiet but determined confidence in S&U's future."

At 0910 BST, shares in S&U were up 0.12% at 2,435.5p.