S&U (LSE: SUS)

Currency in GBP

Last close As at 30/11/2023

GBP21.70

−10.00 (−0.46%)

Market capitalisation

GBP264m

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.

Momentum at Advantage has slowed, as the number of new motor loans fell 15% y-o-y, and we note that new lending was very strong in H223. Alongside weakening macroeconomic indicators, we have reduced our net receivables expectations, which is partially offset by increasing loan rates. We also expect cost inflation to continue to affect EBITDA. Our PBT assumptions for FY24 remain broadly unchanged at £40.9m, but we have lowered FY25 by 9% to £44.1m. Our dividend forecast is unchanged.

Latest Insights

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Financials | Update

S&U — Resilient despite macroeconomic uncertainty

Financials | Update

S&U — Softer volumes but solid EBITDA growth expected

Financials | Update

S&U — Results on track to meet FY24 expectations

Financials | Outlook

S&U — Confident but remaining prudent in approach

Sector

Financials

Equity Analyst

Robert Murphy

Managing Director, Financials and Investment Trusts

Key Management

  • Anthony Coombs

    Executive Chairman of the Board

  • Chris Redford

    FD

Balance Sheet

Forecast net cash (£m)

186.6

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.1 (5.0) 2.4
Relative 1.1 (4.6) 4.0
52 week high/low 2570.0p/2060.0p

Financials

Advantage and Aspen both performed well and broadly in line with our expectations. PBT in H124 was £21.4m, 2% above H123. Impairments were better than expected, particularly at Aspen, but costs were affected by the inflationary environment and a more than twofold increase in finance expenses. Profit after tax came in at £16.2m, 5% below H123 as the tax rate rose. The group declared a dividend of 35p/share, in line with H123. S&U also increased its funding facilities by £70m to £280m in anticipation of future growth. Graham Wheeler, CEO of Advantage, is to retire at the beginning of FY24 and will be replaced by Karl Werner, former managing director of Motor, Aldermore Bank and deputy CEO of MotoNovo Finance.

Y/E Jan Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 87.9 51.3 47.0 312.7 6.9 N/A
2023A 102.7 49.4 41.4 277.5 7.8 N/A
2024E 112.8 55.1 40.9 256.2 8.5 11.6
2025E 124.3 59.2 44.1 272.0 8.0 18.1

Update

Financials

S&U — Upbeat update

Update

Financials

S&U — H122 ahead of expectation and outlook good

Update

Financials

S&U — Reduced impairments underpin increased profit

Update

Financials

S&U — Strong start to the year

Outlook

Financials

S&U — Ready to meet unlocked demand

Update

Financials

S&U — Planning for a significant rebound

Update

Financials

S&U — Looking towards a resumption of growth

Update

Financials

S&U — Adapting to the new environment

Update

Financials

S&U — Still in profit and tentative positive trends

Update

Financials

S&U — Covid-19 impacts but ready to resume progress

Update

Financials

S&U — Sound liquidity, positive near-term cash flow

Update

Financials

S&U — Encouraging year-end update

Update

Financials

S&U — Resilient amid softer sentiment and economy

Update

Financials

S&U — Advantage growth resumes

Update

Financials

S&U — Trading update confirms positive trends

Flash note

Financials

S&U — Encouraging update

Outlook

Financials

S&U — Adjusting to prevailing conditions

Update

Financials

S&U — Lending discipline tempers pace of growth

Update

Financials

S&U — Trading broadly in line

Update

Financials

S&U — Positioning for sustainable growth

Update

Financials

S&U — Good loan growth and credit experience on track

Update

Financials

S&U — Strong loan growth continues

Outlook

Financials

S&U — Strong growth, cautious approach

Update

Financials

S&U — Update 13 February 2017

Update

Financials

S&U — Update 15 December 2016

Update

Financials

S & U — Update 12 October 2016

Update

Financials

S&U — Update 20 May 2016

edison tv

Financials

Executive Interview – S&U