Market Cap£329m

Last Close 2710p

S&U’s Advantage motor finance business lends on a simple HP basis to lower- and middle-income groups who may have impaired credit records restricting access to mainstream products. It has c 62,000 customers. The Aspen property bridging business has been developing since its launch in 2017.

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Investment summary

S&U’s trading update (for the period since its July half-year end) was upbeat, reporting growth accelerating in both Advantage motor finance and Aspen bridging finance. Recent developments in the pandemic could temper near-term consumer confidence but, looking beyond this, S&U has successfully navigated the onset of COVID-19 while continuing to develop both its businesses, creating a good basis for longer-term growth.

Y/E Jan
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 89.9 40.4 35.1 239.4 11.2 65.6
2021A 83.8 22.2 18.1 120.7 22.2 9.8
2022E 86.5 43.0 38.7 258.2 10.4 N/A
2023E 95.2 43.2 38.0 253.1 10.6 N/A
Industry outlook

S&U’s outlook comments were positive, pointing to a brightening background for Advantage with the supply of vehicles to the market likely to improve and still strong demand to be satisfied. While the CBILS loan inflow will not be repeated, Aspen’s pipeline of new business is reported to be 15% ahead of budget and prospects for growth remain good.

Last updated on 12/01/2022
Content on S&U
S&U – Upbeat update
Financials | Update | 10 December 2021
S&U – H122 ahead of expectation and outlook good
Financials | Update | 1 October 2021
S&U – Reduced impairments underpin increased profit
Financials | Update | 11 August 2021
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Share price graph
Balance sheet
Forecast net cash (£m) 119.3
Forecast gearing ratio (%) N/A
Price performance
Actual 0.4 (5.3) 21.8
Relative* (1.9) (9.2) 10.2
52-week high/low 2950.0p/2070.0p
*% relative to local index
Key management
Chris Redford FD
Anthony Coombs Executive Chairman of the Board