S&U (LSE: SUS)

Last close As at 21/05/2024

GBP20.20

0.00 (0.00%)

Market capitalisation

GBP245m

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 9.8 8.5 (19.2)
Relative 2.8 (0.6) (25.6)
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 — Positive update despite macro uncertainties

Outlook

Financials

S&U — Seeing recovery and adapting to grow

Update

Financials

S&U — FY22 profit beat and positive outlook

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

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Executive Interview – S&U

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IPO apocalypse

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IFRS 16

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Deutsche Börse’s Scale

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Deutsche Börse Eigenkapitalforum 2014 Research Guide