S&U — Robust delivery through FY26

S&U (LSE: SUS)

Last close As at 09/02/2026

GBP23.50

−30.00 (−1.26%)

Market capitalisation

GBP286m

More on this equity

Research: Financials

S&U — Robust delivery through FY26

S&U published an update on trading to 5 February (end-FY26) and will release its annual results on 21 April. Group performance continues to be characterised by robust growth in the property lending division and by recovery in the motor finance business. Group net receivables increased to c £495m, up c 14% y-o-y. The company has grown the business, added additional funding for future growth and increased the final dividend by c 17% to 35p. Shares have reacted positively, increasing more than 25% since December. We continue to see upside potential for the shares over the medium term.

Martyn King

Written by

Martyn King

Director, Financials. Property and Insurance

Financial services

End-year trading update

10 February 2026

Price 2,350.00p
Market cap £286m

Gross borrowing as at 5 February 2026

£241.0m

Shares in issue

12.2m
Free float 25.0%
Code SUS
Primary exchange LSE
Secondary exchange N/A
Price Performance

Business description

S&U’s Advantage motor finance business lends on a simple hire-purchase basis to lower- and middle-income groups that may have impaired credit records restricting access to mainstream products. It has more than 50,000 customers. The Aspen property bridging business has been developing since its launch in 2017.

Analysts

Martyn King
+44 (0)20 3077 5700
Jonathan Richards
+44 (0)20 3077 5700

S&U is a research client of Edison Investment Research Limited

Note: All figures are on a reported basis.

Year end Revenue (£m) PBT (£m) EPS (£) DPS (£) P/E (x) Yield (%)
1/24 115.4 33.6 2.09 1.20 11.2 5.1
1/25 115.6 26.7 1.47 1.00 15.9 4.3
1/26e 115.4 31.3 1.93 1.10 12.2 4.7
1/27e 121.9 34.4 2.12 1.20 11.1 5.1

Aspen Bridging and Advantage Finance

Aspen Bridging, the property lending business, grew lending to £212m and increased number of deals by c 40% to 267 in FY26, making it the most successful year since inception in 2017. Credit quality remains high, which provides a solid foundation for growth in the reviving UK residential market expected in FY27. The motor lending business, Advantage Finance, saw over a 65% y-o-y increase in loan advances. Motor lending recovery continues at pace under the experienced leadership of Karl Werner. Repayments were 93% of due compared to 87% for the most recent month, above budget and evidence of excellent customer relations and S&U’s regulatory alignment. This should all feed into meaningful profitability growth.

Funding and dividend

Group borrowing has been steady over the past two months, at £241m. Existing rates of growth are predicted to require additional investment of c £100m for FY27. As a result, S&U sourced additional funding by extending the existing revolving credit facilities from £230m to £280m in January. The group is in the process of arranging longer-term facilities, which will substantially increase the ability to finance the growth over the next five years. S&U has a consistent dividend policy and, based on trading performance, the company has proposed a second interim dividend of 35p, a c 17% y-o-y increase, payable on 6 March to shareholders on the register on 20 February 2026.

Valuation: Re-rating story continues

Shares reacted positively, up c 3%, post the release of the results. On a FY26e P/E of c 12x the shares are trading significantly higher than recent history. We view the positive momentum as a driver for the continued re-rating of the shares. The dividend yield offers attractive income support, while awaiting a full recovery in earnings.

General disclaimer and copyright

This report has been commissioned by S&U and prepared and issued by Edison, in consideration of a fee payable by S&U. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright 2026 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or sol icitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on S&U

View All

Financials

S&U — Robust delivery through FY26

Financials

S&U — H1 results provide positive momentum

Financials

S&U — Q226 trading provides H2 support

Latest from the Financials sector

View All Financials content

Research: Healthcare

SynAct Pharma — Resomelagon progresses in RA, viral infections

SynAct Pharma has completed patient recruitment for its Phase IIb ADVANCE trial (n=240) in rheumatoid arthritis (RA), while initiating the Phase II RESPIRE study in hospitalised with respiratory insufficiency due to viral infections (n=96). Together, these developments reinforce SynAct’s dual clinical strategy for resomelagon in both chronic inflammatory disease and the acute hospital setting. While recruitment progress in the ADVANCE trial de-risks trial execution, database closure and analysis timelines imply top-line ADVANCE data will likely move from our previously anticipated Q126 window into Q226. We expect top-line readouts from the ADVANCE trial to remain the key catalyst for partnering discussions and valuation inflection. We will present our adjusted estimates following SynAct’s FY25 results on 18 February 2026.

Continue Reading