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Currency in GBP
Last close As at 23/03/2023
GBP22.75
▲ 25.00 (1.11%)
Market capitalisation
GBP273m
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.
Looking ahead, S&U acknowledges the likely low levels of consumer confidence and spending this year in the UK, but still sees good opportunities for responsible lending against this background. Our forecasts are unchanged at this point and already factor in more modest loan growth, increased interest costs and further normalisation of loan loss provisioning for FY24.
Financials
Financials
Financials
Director, Financials
Anthony Coombs
Executive Chairman of the Board
Chris Redford
FD
Forecast net cash (£m)
185.5
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 5.3 | 5.8 | (5.2) |
| Relative | 10.4 | 4.7 | (4.2) |
| 52 week high/low | 2510.0p/1905.0p |
S&U’s year-end trading update confirmed that trading for both Advantage motor finance and Aspen property bridging remained excellent since the last update in December. Year-end group net receivables were c £420m, up 13% from H123 and a 30% increase over the year. At Advantage, transactions reached nearly 24,000, with volume unaffected by the normal seasonal slowdown in December. Aspen has continued to make progress and repayment quality is good but S&U notes a slowing in the housing market, which has prompted increases in Aspen interest rates and loan to value requirements. Full-year results, due on 28 March, are expected to meet expectations and be above budget.
| Y/E Jan | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 83.8 | 22.2 | 18.1 | 120.7 | 18.8 | 8.4 |
| 2022A | 87.9 | 51.3 | 47.0 | 312.7 | 7.3 | N/A |
| 2023E | 102.6 | 49.2 | 41.2 | 276.2 | 8.2 | N/A |
| 2024E | 121.0 | 58.1 | 42.5 | 265.6 | 8.6 | 404.2 |
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