Market Cap£247m

Last Close 2030p

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

In its May AGM update S&U acknowledged the geopolitical and macroeconomic background with cost-of-living pressures and low consumer confidence. However both its businesses, Advantage motor finance and Aspen property bridging, are making steady progress and achieved profit ahead of budget since the end of FY22 in January. Demand for motor and property bridging finance remain strong. Group net receivables stood at stood at £340m on 25 May compared with £295m on 19 May 2021, £322m at end FY22 and our estimate of £366m for FY23. Credit quality remains good in both businesses with Advantage payment arrears below budget and falling while, mindful of the economic background, affordability buffers are a part of the underwriting criteria. Strong collections have resulted in borrowings of £125m compared with £114m at the year end (and medium-term facilities of £180m).

Y/E Jan
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2021A 83.8 22.2 18.1 120.7 16.8 7.5
2022A 87.9 51.3 47.0 312.7 6.5 N/A
2023E 95.6 44.3 39.3 262.0 7.7 N/A
2024E 105.8 48.9 42.7 267.0 7.6 861.9
Industry outlook

S&U currently expects to meet growth targets for the year but will focus on maintaining the quality of its loan book and service to customers. The group continues to develop both its businesses, creating a good basis for longer-term growth.

Last updated on 30/06/2022
Content on S&U
S&U – Positive update despite macro uncertainties
Financials | research Update | 30 May 2022
S&U – Seeing recovery and adapting to grow
Financials | research Outlook | 1 April 2022
S&U – FY22 profit beat and positive outlook
Financials | research Update | 11 February 2022
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Share price graph
Balance sheet
Forecast net cash (£m) 140.1
Forecast gearing ratio (%) N/A
Price performance
Actual (12.5) (16.5) (24)
Relative* (6.7) (11.2) (22.6)
52-week high/low 2950.0p/2030.0p
*% relative to local index
Key management
Chris Redford FD
Anthony Coombs Executive Chairman of the Board