S&U (LSE: SUS)

Last close As at 24/05/2024

GBP20.20

12.50 (0.62%)

Market capitalisation

GBP246m

S&U’s Advantage motor finance business lends on a simple HP basis to lower- and middle-income groups that may have impaired credit records restricting access to mainstream products. It has c 65,000 customers. The Aspen property bridging business has been developing since its launch in 2017.

Finance applications at Advantage remain robust, but loan advances in the period were 7% lower than last year as management exercises caution in its lending approach. Advantage announced that its relationship with the FCA, regarding its industry-wide review into customer forbearance and affordability, has deepened. It has since made preventative changes to its collection and repossession processes. Positively, the FCA has approved the appointment of Karl Werner as CEO of Advantage, succeeding Graham Wheeler.

Latest Insights

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Financials | Outlook

S&U — PBT ahead, encouraging volume trends

Financials | Update

S&U — Impairments drag FY24 PBT, moderation in FY25

Financials | Update

S&U — Maintaining cautious approach

Financials | Update

S&U — Resilient despite macroeconomic uncertainty

Sector

Financials

Equity Analyst

Rob Murphy

Managing Director, Financials and Investment Trusts

Martyn King

Martyn King

Director, Financials

Key Management

  • Anthony Coombs

    Executive Chairman of the Board

  • Chris Redford

    FD

Balance Sheet

Forecast net cash (£m)

268.5

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 6.3 10.4 (20.5)
Relative 2.5 2.1 (26.0)
52 week high/low 2570.0p/1800.0p

Financials

S&U reported FY24 PBT of £33.6m, down from £41.4m in FY23 on higher funding and regulatory costs and higher impairments in Advantage in H2. PBT was 2% ahead of our forecast as stronger revenues – up 12% to £115.4m – and better costs offset higher-than-expected impairments. Net receivables grew to a record at both Advantage and Aspen and management noted particular strength in Q4 and a good trading environment in the current year. Having absorbed a significant rise in funding cost as well as additional regulatory cost, the company looks well positioned to deliver steady growth from here on, especially if interest rates fall in the latter half of 2024.

Y/E Jan Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2023A 102.7 49.4 41.4 277.5 7.3 N/A
2024A 115.4 49.2 33.6 209.3 9.7 N/A
2025E 133.2 57.8 37.3 230.0 8.8 N/A
2026E 145.7 65.7 42.6 263.0 7.7 N/A

Research

Update

Financials

S&U — Resilient despite macroeconomic uncertainty

Update

Financials

S&U — Softer volumes but solid EBITDA growth expected

Update

Financials

S&U — Results on track to meet FY24 expectations

Outlook

Financials

S&U — Confident but remaining prudent in approach

Update

Financials

S&U — FY23 results set to meet expectations

Update

Financials

S&U — Positive trading update

Update

Financials

S&U — Experienced specialist lender performs well

Update

Financials

S&U — H1 growth ahead of expectations

Thematics

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Financials

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Financials

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Financials

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